…but Bhim optimistic
Chief Executive Officer of GuySuCo, Paul Bhim yesterday confirmed that the sugar industry is facing a heavy production deficit saying that it has slumped to “some low levels” this year, but he expect things to “pick up soon”.
The industry has just over two months to pick things up before the crop ends in mid-December and while Bhim is optimistic, the signs continue to paint a dismal picture, particularly in production.
Bhim declined to release any production numbers mid-week, but sources within the industry said the deficit is high as 30,000 tonnnes. Second crop numbers were reportedly some 61,000 tonnes as of last week; production averages around 8,000 tonnes weekly.
“It is true that we are behind, yes it could be close to that number, but the weather has severely impacted on our operations”, the CEO told Stabroek News. He said the industry has been struggling since the start of the first crop and is constantly facing setbacks, but insisted that the current dry weather means better results.
He said GuySuCo could easily “catch up” with its production provided the weather holds because the industry has an adequate supply of cane in the ground.
This, he said, means that GuySuCo has to go ahead with full speed and bring the numbers up within the next few weeks.
According to him, they are sticking with the current targets and previously revised estimates for the second crop put it at around 185,000 tonnes.
A production target of 280,000 tonnes has been set for this year, but the industry recorded a shortfall during the first crop with output being recorded at 81,864 tonnes.
Skeldon is currently operating with one punt dumper and there are no clear indications as to when the other dumper would be functional. The problem started this week, according to Bhim, who stressed that the factory is operating satisfactorily despite the problem. However, he admitted that it is grinding less cane because of the problem.
And this week Skeldon’s General Manager, Vishnu Panday also resigned. The resignation comes as Skeldon is recovering from a fire at the bagasse plant which resulted in extensive damage to a conveyor belt and prior to this, an explosion that resulted in damage to both boilers.
Agricultural Manager at Skeldon, Vickram Subramani has since been appointed to act as General Manager. When questioned about the resignation Bhim said Panday left over personal reasons, but there were reports of some tension between the GM and some farmers.
“…There have been a few stoppages for about an hour or two but nothing major”, Bhim said of the operations at Skeldon which is currently not grinding at capacity. The Chinese-built factory had been downgraded to grind at 200-250 tonnes cane per hour, from its designed 350 tonnes cane per hour due to an inadequate supply of cane.
Bhim said the industry is bouncing back from a tough period, adding that they have also seen improvement in the midst of the struggles. He said the replanting and tillage across the industry has improved significantly de-spite the weather and that the groundwork has already been laid for a solid year in 2011.
“Our first crop was not brilliant and we did hit some low levels this year, but I can say that things are improving. I admit that we are not going at the pace we would like to, but we are working to turn things around”, Bhim added.
“They need to step things up”
General Secretary of the Guyana Agricultural and General Worker’s Union (GAWU), Seepaul Narine told Stabroek News yesterday that GuySuCo needs to step things up because the current numbers are not positive indications.
Speaking on the production, he said, the union is aware of the massive deficit the industry is facing and also confirmed that the number is around 30,000 tonnes. “They need to step things up”, he said, noting that while the weather has been a spoiler the industry also has to work harder.
Narine noted that the weather has dealt the second crop a few crippling blows, particularly as it relates to the harvesting efforts. Still, he said some of the problems at Skeldon need to be addressed, in addition to efforts being put in across the industry.
Narine said also that if GuySuCo is to reach the revised targets set it might have to consider working beyond the mid-December deadline currently in place for the end of the crop.
He said cane yields have increased across estates including Albion, Skeldon and Rose Hall, adding that “this is a good sign”.
A turnaround plan for GuySuCo was handed over last year by the Interim Board and it envisages stepped up mechanization, transforming the Enmore estate into an important hub, ending grinding at LBI, an ethanol plant and transferring health and community services to the state. Production, however, continues to be a key problem.
