GuySuCo claims downsizing will create “cash positive” by 2020

The Guyana Sugar Corporation (GuySuCo) says it is moving to reduce its dependency on Government’s subvention as it begins reorganising for downsized operations.
“What we are looking to do is to become cash positive. By 2020, we are hoping to stop our dependence on the Government for these subventions we’ve been asking for,” Finance Director and Deputy Chief Executive Officer of GuySuCo, Paul Bhim, said.

The Government – both present and past — has provided to the cash-strapped GuySuCo subsidies to the sum of $32billion over the last three years, and is still expected to provide these subventions over the coming two years.
However, at a press conference hosted in the National Communications Network’s (NCN’s) studios, Bhim said GuySuCo would be relying on value-added sugar production to achieve its cash neutrality target.
“With the three estates that (are) remaining, we’re looking to maximise our revenue from the value-added sugar — that is, sugar sold to Caricom, which is mainly bagged sugar and packaged sugar,” Bhim is quoted as saying by the Department of Public Information.
At the Albion Estate, GuySuCo will focus on bulk sugar, co-generation, and molasses. Production of bagged and packaged sugar will be done at Blairmont; while, at Uitvlugt Estate, GuySuCo will focus on bagged and plantation white sugar.
GuySuCo is also hoping to supply the local market, which consumes approximately 20,000 tonnes.
The corporation is additionally looking to move into new markets, particularly for plantation white sugar, which is a substitute for refined white sugar. There is potential at Uitvlugt Estate for increased sugarcane cultivation, GuySuCo Public Relations Officer Audreyanna Thomas noted.
GuySuCo is looking to tap into the Caribbean market for plantation white sugar. Bhim pointed out that the Caribbean Community (CariCom) annually imports approximately 190,000 tons of refined white sugar. While 10% of refined sugar is used for manufacturing foods and beverages, he said, “the rest could come from plantation white sugar”.
Downsizing the sugar industry to three estates is among recommendations outlined in a State paper on the future of the sugar industry. The end result will see GuySuCo comprising three estates complete with sugar factories. The estates would be Blairmont, West Bank Berbice; Albion-Rose Hall in East Berbice, and Uitvlugt-Wales in West Demerara.