By Fitzroy Fletcher
The Caribbean Agri-Business Association (CABA) has been observing, with more than a little passing interest, the unfolding events of the Guyana sugar industry. We have noted the massive financial losses incurred by the industry over many years, and the efforts of the Guyana Government to halt the consequential strain on the national treasury. We have also noted the decision to close or privatize some estates in order to stem the losses, and, “save” the sugar industry. The repercussions of this decision, in respect of social and economic hardship for many thousands, we see are now unfolding.
The underlying problem
CABA, with its extensive private sector experience in agri-business across the Caribbean, and with its mandate to promote the development of the Sector in the CARICOM Region, could not therefore neglect to address the issues of this vital traditional industry.
CABA has examined the available information on the sugar industry region-wide, and has come to the inescapable conclusion that declining field productivity is the fundamental cause for the malaise in this industry. The fact that increasing agricultural productivity is the backbone of successful agri-business played no small part in influencing our analysis.
The Guyana sugar industry is a case in point. Sugar cane yields have been falling gradually and steadily over the past 70 years. They have fallen from an average of almost 90 Tons cane per Hectare (TC/H) in the 1950’s, down to 55TC/H in 2017. This fact alone is sufficient to demonstrate the declining international competitiveness of the sugar industry and signaled its approaching problems.
