Estate misses target by 1300+ tonnes

Uitvlugt underwhelms

In what can be seen as another blow to an already ailing industry, the Guyana Sugar Corporation’s Uitvlugt Estate, located on the West Coast of Demerara (WCD), has missed its production target for the first crop by just over 1300 tonnes. According to information received, the Estate garnered 7031 tonnes in sugar production, down from a projected 8339 tonnes. This reportedly represented a shortfall of 1308 tonnes out of the projected target. It was on Sunday last that production ended for the current crop.

Guyana Times understands that a number of factors were responsible for the estate’s inability to achieve its target. Two of the disclosed reasons for the shortfall included rat damage to crops and a shortage of canes to suffice the production process. This publication learnt that, in fact, much of the canes from several locations on the West Bank of Demerara (WBD) could not go to Uitvlugt for much needed processing.

It has been months since the contract for the road to transport the canes of private farmers from West Bank to West Coast Demerara was publically tendered but to date, the road is yet to be constructed. However, <<<Guyana Times>>> was told that some farmers, including those from Canal Number One and La Retraite, WBD, came together and cleared an alternative access to transport their canes to the estate. It remains unclear whether or not the majority of farmers have the ability to access this reported make-shift route.

The final cane supply for production was accepted at Wales in December 2016 and many farmers had complained that much of their acreage was left without being reaped which resulted in millions of dollars in losses. Additionally, much of the cane lands under the Guyana Sugar Corporation’s (GuySuCo) control were reportedly abandoned. Also in December, Agriculture Minister Noel Holder had claimed that under indented conversion plans, the first crop of rice at the Wales Estate was expected by March 2017 but this never materialised.

The Minister had also told the National Assembly that the sugar factory would be converted into a business establishment that will see the rearing of poultry and livestock.

The decision to close the Wales Estate was confirmed by Government in January 2016 after Guyana Times broke the news earlier that month. Government later said the Wales Estate was closed after billions of dollars were accrued in losses over the years. At high-level sugar consultations held at the end of last year among Government, GuySuCo, the Union and the Opposition, the Administration had disclosed that only three estates would be kept functional.

In fact, a “white paper” on the sugar industry’s future is expected to be laid at the next sitting of the National Assembly. A white paper is an authoritative report about a complex issue which is meant to help persons to understand an issue, solve a problem, or make a decision.

Another area of discussion included in the white paper relates to the feasibility of merging some of the sugar estates and factories where appropriate, and selling off some facilities.

The draft white paper on the sugar industry’s future was submitted by Agriculture Minister Noel Holder to Cabinet for its consideration on Tuesday, April 18, 2017. Cabinet discussed the proposals in the draft white paper and subsequently granted its approval for the document to be laid in the National Assembly.

The white paper follows a process of overhauling of the industry which includes a Commission of Inquiry (CoI) into GuySuCo, the subsequent setting up of a special task force to look at options on the way forward for the sugar company.

Finance Minister Winston Jordan in his presentation of the 2017 Budget had said that the sugar industry would require Government’s support to the tune of $18.6 billion and $21.4 billion for the years 2017 and 2018, respectively. He had also explained that based on the CoI, it was concluded that any money injected into sugar, in its current state, is money wasted.