GuySuCo heading for worst production in history – GAWU

…blames management for state of affairs

The Guyana Agricultural and General Workers Union (GAWU) says the Guyana Sugar Corporation (GuySuCo) is heading towards its worst production in history, and blamed the “lackadaisical” attitude of the leadership of the Sugar Corporation for this state of affairs.

In a statement on Thursday, GAWU lamented that GuySuCo has failed to meet its already lowered revised production target. At the beginning of the year, GuySuCo had set a target of 114,162 tonnes sugar – 46,475 tonnes in the first crop and 67,687 tonnes in the second crop.
However, it only managed to produced 37,015 tonnes of sugar during the first crop – a deficit of some 9,460 tonnes sugar. The corporation then said in July that the second crop will 69,480 tonnes of sugar.
But according to GAWU, the second crop target should be a total of 72,767 tonnes sugar, that is, 67,687 tonnes (the initial target) and 5,080 tonnes (which was the projected production from the 66,000 tonnes of canes that were not harvested during the first crop).
The estimated production for sugar industry this year is 70,928 tonnes of sugar, but actual production thus far is 46,535 tonnes – a deficit of 24,393 tonnes.
Moreover, the Union went onto note that as of Thursday September 3, 2020 the second crop is in its fifth week and only 9,519 tonnes sugar have been produced thus far of which 1,326 tonnes were produced in this week alone.
Based on the figures presented by the Union, the estimated crop production from the three estates – Albion, Blairmont and Uitvlugt – is 40,863 tonnes of sugar. But actual production as at the week ending August 28, 2020 was only 8,193 for all three estates – a variance of 28,587.
GAWU said GuySuCo’s major problem continues to be the lack of quality canes in its fields resulting in the cane yields being woefully under target.
“We believe the data is instructive and points out that, though, the Corporation is apparently producing higher quantities of canes; those canes do not have the sucrose content that is expected. At the end of the day, the company is in the business of producing sugar however, the data suggests that the cane crop has considerably higher fiber (bagasse) than normal… Should these numbers hold it would mean that GuySuCo would produce 77,878 tonnes sugar for year 2020,” the Union said.
In its missive on Thursday, GAWU blamed the management of GuySuCo for inadequate crop management.
“As we consider what is transpiring, it is apposite to point out that the canes harvested now, have been planted and nurtured in 2019 and first half of 2020. The fruits of those efforts are now being reaped. Clearly, it appears to us that there was inadequate or improper crop management for which detailed explanations must be provided. It seems to us that a lackadaisical attitude has percolated deep into the psyche of those charged with managing the Corporation,” the union asserted.
Moreover, the union added that the similar attitude is continuing now as no estate has tilled any land although harvesting operations are ongoing for about a month now. Tilling and subsequent planting are critical operations for the industry to regenerate and produce cane and sugar effectively and efficiently. The absence of such crucial work, either by design or accident, tells its own tale and demonstrates that all is not well, GAWU pointed out.

“It seems to us that there is really no effort by the Corporation’s leadership to aggressively and meaningfully address the challenges. Rather it appears that the laid-back attitude has taken grip in the organisation’s structure because the perennial whipping boys such as strikes and bad weather are the identified causes for non-achievement of targets at end of crops. Clearly, as the data bears out, the problem is much more fundamental and there appears no emphasis to meaningfully address those realities but rather to engage in a vicious cycle which serves to push the industry further down the path of unsustainability,” the missive detailed.
GAWU further posited that this situation brings into focus the commitment of the Corporation’s leadership, many of whom championed and enabled estate closures resulting in massive layoffs.
To this end, the union noted that all the talk about a smaller, efficient and resilient Corporation stands nakedly exposed today and is yet another indicator that those at the helm cannot be entrusted with the responsibility and authority to retrieve the company from its present morass.
Nevertheless, GAWU said it hopes the situation will improve drastically and has even indicated its concerns to Agriculture Minister Zulfikar Mustapha on the emerging trend, that is, GuySuCo not being able to realise this year’s revised and lowered sugar production target.
Only last month, Minister Mustapha pledged to restructure the management at three existing estates and work towards ensuring that GuySuCo returns to a state of profitability.
During a press briefing with reporters, the Agriculture Minister lamented on the poor financial position of the heavily indebted and cash-strapped sugar corporation.
He explained that the Capital programme has suffered from a lack of funding with the Corporation only being able to spend $82 million from a budget of G$3.24 billion due to external funding not being made available.
According to Mustapha, this has already negatively impacted the first crop of 2021 which will continue to be weak due to low achievement of tillage and replanting targets thus far for this year.