Dear Editor,
I thank you for allowing me space in your publication over past weeks to share with this nation, details on the Guyana Sugar Corporation (GuySuCo) to allow citizens to formulate their own conclusions.
In one of my letters titled “I would like GuySuCo to answer these four queries”, which GuySuCo seems to be dodging, I stated that GuySuCo’s Executive management is a hapless crew that is irrational, illogical and lacks objectivity. This description cannot be more apt, given the recent news on proposed closure of the Enmore and Rose Hall Factories by the end of 2017.
Editor, I do not support the closure of any estate because I know that it is practically possible to upgrade inefficient factories and increase efficiency in field operations. In this analysis, I shall focus on the decision-making in the Demerara region only. At this instant, GuySuCo ended sugar operations at Wales Estate citing disingenuous reasons and have proposed closure of Enmore and the expansion of Uitvlugt. I support expansion of Uitvlugt in its entirety, however, let’s examine whether the closure of Enmore is sensible or senseless.
Firstly, at the moment, GuySuCo receives US0/tonne for bulk sugar and US0-700/tonne for direct consumption sugars. Uitvlugt produces bulk sugar, while Enmore produces and packs direct consumption (DC) sugar to international standards. With such price difference, a logical question is, why close a factory that can deliver a product that earns US0-700/tonne? Secondly, the Enmore Factory has the third most superior juice extraction plant and bagasse-fired boilers after Skeldon and Albion, while its juice processing plant is more advanced for a GuySuCo DC factory, with newly installed equipment, just about five years old (eg syrup clarifier, vertical crystalliser, sugar dryer, pan stirrers, etc). Why close a factory with superior equipment? Thirdly, more than 70 per cent of cane fields at Enmore can accommodate mechanised operations such as planting, weed control, harvesting, etc. Why close an Estate with more mechanised operations? Fourthly, while all estates have a high-unit cost of production, Enmore’s unit cost is lower than some of the other estates. Why close an estate with a lower production cost?
My fellow Guyanese, you are now equipped with additional details to determine whether a proposal by GuySuCo to close Enmore is sensible or senseless. Hopefully, GuySuCo will respond to these additional queries. It is a national tragedy that the Government of Guyana is accepting fully advice by a super-salaried team that displays the epitome of incompetence and poor judgement and unconscionable hearts. GuySuCo’s narcissistic CEO and team are directing the Government down a path of self-destruction.
Sincerely,
Sookram Persaud
