GuySuCo’s projected sugar production seems unrealistic

Dear Editor,

Our Union recently learnt that the GuySuCo is projecting that sugar production this year will reach 114,162 tonnes sugar as follows:-

In effect, the Corporation by its estimates is telling the nation that sugar production in 2020 would rise by 26.5 per cent when compared with last year’s production. This, whatever yardstick is utilized, is a significant increase and a feat that has not been strange to the industry in recent times. Just to recall, sugar production fell in 2016 by 26 per cent when compared to the 2015, in 2017 it fell by 33.5 per cent when compared to 2016, in 2018 it fell by 31.2 per cent when compared to 2017, and in 2019 it fell by 16 per cent when compared to 2018. All in all the likelihood of the large increase forecasted seems a steep hill to climb.

GuySuCo had informed previously that it ended 2019 with some 151,000 tonnes of harvestable canes which it said could not have been harvested for different reasons. Those canes it surmised were capable of producing 17,000 tonnes of sugar. To realise what the Corporation said was/is possible, it would mean that approximately 9 tonnes of canes would be required to produce a tonne of sugar. This, from our own knowledge, is simply not realistic. During the 2019 second crop, on average it required 11.81 tonnes of cane to produce a tonne sugar at Albion, 12.95 at Blairmont, and 13.58 at Uitvlugt.

Of course, whether the Corporation has the canes it says it has is another question. The Company, according to the January 03, Stabroek News, said “…1981 hectares that could not be harvested…”. In other words, the GuySuCo is indicating that cane yields were 76.24 tonnes cane per hectare. This compares to cane yields of 66.64 tonnes per hectare at Albion, 69.78 at Blairmont, and 71.78 at Uitvlugt during the 2019 second crop. This obviously places into doubt what is envisaged.

Apart from those concerns, we remain apprehensive about the functioning of the factories. The Corporation did acknowledge that its factories suffered major mechanical failures during the 2019 second crop. From information we received, it is understood that not much was done during the out-of-crop period to meaningfully address these shortcomings. Workers have shared with us that defective components, in need of replacement, were simply removed, serviced, where possible, and re-installed. It gives us little hope that there will be much improvement and that the situation will be vastly different from what prevailed during the last crop.

Another important element in improving production concerns the ability of the industry to till and plant fields. From those who may be unaware cane fields are re-tilled and re-planted every five years. Thus, annually at least 20 per cent of an estate’s cultivation ought to be tilled and new canes planted in order to maintain acceptable levels of productivity. For 2019, Albion tilled and re-planted 15.28 per cent of its cultivation, at Blairmont it was 14.35 per cent, and at Uitvlugt it was 15 per cent.

Taking into account the foregoing it, therefore, brings into question whether the anticipated production growth is realizable or even feasible to begin with. Though the anticipated production is below the potential of the operable estates we still harbour doubt about whether it can be met bearing in mind the currently prevailing situation. Of course, GuySuCo’s production difficulties come when there is a worldwide shortage of sugar which will continue into next year. Several credible sources have pointed out that global consumption will outstrip production by some 7.7 million tonnes this year. The shortage has served to push prices 12 per cent higher for the year so far. It is apparent, that though having the potential, GuySuCo, from all appearances would, unfortunately, not be able to benefit, in a big way, from the price surge.

While the GAWU sincerely desires for the industry to succeed, such successes we contend has to come alongside a sustained programme to improve efficiency and productivity. This, however, is held back as money earmarked for investment into the industry has been imprisoned while the ship of sugar continues to take on water and those charged with making decisions make hollow statements. 

Yours faithfully,

Seepaul Narine

General Secretary

GAWU