The Guyana Sugar Corporation says that over the past six months the World Market price for sugar has fallen significantly with a range of US$ 250 – 275 per tonne which is around US12.5 cents per pound (c/lb). Yesterday 28 June, 2017, the price is US12.66 cents per pound.
In a statement yesterday, GuySuCo says it supplies annually, 65,000 tonnes of bagged and packaged sugar to Caribbean and local markets. Another 12,000 tonnes of raw sugar is shipped to the North American market while the remainder, also raw sugar, is sold on the European market. The supply to Europe for the Second Crop 2017 will total some 70,000 tonnes.
GuySuCo said that the current forecast is that there will be a surplus of sugar on the World Market for the marketing year 2017/2018. In addition, from 1st October 2017, the European Union (EU) market will also see radical changes since it is anticipated that significant additional amounts of beet sugar will be available for sale and this will compete directly with cane sugar. GuyiSuCo said that this may result in reduced sugar prices in Europe.
Due to the competition with beet producers, the price paid by the refiners for raw cane sugar (as supplied by GuySuCo) will be more in line with the World Market Price, which currently is trading at US$275 per tonne and the forecast is that it will not increase significantly in the near future .
The price at the start of the year was US$396 per tonne. This is far below the price GuySuCo received in its hey-day.
“The anticipated lower prices for the sugar sold will not assist the Corporation’s fragile financial position and poor liquidity will continue to pose a serious challenge in the upcoming Second Crop”, the embattled GuySuCo said.
The Corporation is therefore encouraging its employees, particularly harvesters and planters, to turn up at estates and assist to harvest all canes.
Sugar-dependent communities are also urged to support the Corporation’s outreach drive to increase attendance on all estates for the Second Crop which starts mid-July.