Diversification in and out of Sugar
This week I finish my examination of the sugar industry that I had started 20 weeks ago (May, 29, 2011). In last week’s column I had outlined a proposal to guide the transformation of GuySuCo from what is an intrinsically archaic centralized state-owned corporation producing mainly sugar into a number of potential investment units/bundles/clusters, which are structured around either 1) existing estates as separate entities 2) carefully selected geographic and settlement locations 3) other nodes of economic activities (on-going or projected) 4) declared investor interests or 5) some combination or all of the above.
However, I was at pains to emphasize that the Skeldon Sugar Modernization Project area (SSMP) should be carved-out from this proposal. This area should remain primarily in sugar production because of the humongous costs already sunk in the project. There is the further consideration that the Skeldon area is potentially the lowest unit cost producer of sugar because of its favourable agro-geographic features and should remain attractive for private independent cane farmers. This carve-out area stays in sugar production and should be able to
