DDL, SPU seals deal on molasses for 2018 rum production

After weeks of uncertainty over where to source molasses to continue rum production following the downsizing of the sugar industry, Demerara Distillers Limited (DDL) on Friday finalised a deal with the Special Purpose Unit (SPU) to use the canes in the fields to sustain its operations for the rest of 2018.
This announcement was made by DDL Chairman, Komal Samaroo, during the commissioning of a new rum aging warehouse at its operations at Plantation Diamond, East Bank Demerara on Friday. Head of the SPU, Colvin Heath-London, was present at the event.

The SPU was set up under the National Industrial and Commercial Investment Limited (NICIL) to manage the divestment of GuySuCo’s assets following its downsizing last year.
According to the Chairman, his company has been working along with SPU, GuySuCo and the Government of Guyana to come up with short-term responses and long-term sustainable solutions to address challenges imposed by the downsizing of the sugar industry.
“This afternoon we have come to a meeting of the mind on an agreement for the rest of 2018 to harvest the standing canes in the fields and to convert it into inputs for the rum production, so that we can continue producing throughout the year,” he revealed.
Samaroo went on to say that, in the meantime, the company is awaiting the completion of ongoing valuation being done on GuySuCo’s assets to start negotiations and have serious discussions on a more sustainable solution going forward.
The DDL Chairman further noted that while rum has historically been looked at as a by-product, there is now a revolution of the beverage category, and the company is now looking to make rum the primary product of the sugar industry.
Since the thousands of workers have been fired in a downsizing of the sugar industry last year, DDL, producer of world renowned and award winning El Dorado rums, have, in recent months, complained bitterly over this move. Together, the three remaining estates – Uitvlugt, Blairmont and Albion – are projected to produce a total of 52,000 tons of molasses this year. However, DDL’s molasses requirement for 2018 is 70,000 tons.
The company has since been exploring options, and was even contemplating importing molasses to sustain rum production to meet its increasing local and international demands.
Nevertheless, as a long-term solution to this challenge, the company has submitted an expression of interest (EoI) to NICIL and to Government for the potential purchase of the now closed Enmore Estate. This would allow the company to have a guaranteed steady supply of molasses.
However, if the company’s proposal — to take over the East Demerara estate — does not prove to be feasible, or if the facility is given to someone else, then DDL may have to source molasses from foreign suppliers to ensure adequate and reliable supply in the future.
Earlier this month, it was revealed that DDL would be partnering with the SPU and Government to restart the Enmore Estate, and almost 200 workers have been rehired to start operations this month to produce molasses for the rum industry.
It was reported, too, that over 190 cane harvesters have been employed to harvest some 4,300 hectares of sugar cane at Rose Hall, so that it can be used by Albion to also produce molasses for DDL.