GuySuCo “working aggressively” to reduce cost of production – Mustapha

– says $B spent to restore industry after Coalition’s destruction

Agriculture Minister Zulfikar Mustapha is confident that the Guyana Sugar Corporation (GuySuCo) will not only achieve its target set for 2025 but also reduce its high cost of production.
The Minister was at the time responding to questions from the Parliamentary Opposition during the Consideration of the Budget Estimates for his Ministry on Friday.
Shadow Agriculture Minister, Vinceroy Jordan, pointed out the state-owned sugar corporation lost almost $30 billion since 2020 and asked how they intended to fix this.
In response, Mustapha reminded of the state of the sugar industry when the People’s Progressive Party/Civic (PPP/C) took office in August 2020. Between 2016 and 2017, the A Partnership for National Unity/Alliance For Change (APNU/AFC) Administration downsized GuySuCo and closed several estates across Guyana – an action that displaced more than 7,000 sugar workers.
“The industry was in a state where we had to spend a lot of funds to bring it back to where it is now. Places like Rose Hall, the cultivation was like a forest and we had to clear it up and replant the entire cultivation. Uitvlugt Estate was left at the mercy of nature and probably by the grace of God, it functioned. Albion, the entire system at Albion we have to continue fix it,” he recalled.
Nevertheless, the Agriculture Minister assured that efforts are being undertaken to reduce the cost of sugar production.
“So, we are working to ensure that we have maximum capacity at these estates so that they can crush the canes. We are having better canes now; we are planting back new canes and better varieties of canes. So, we are working very aggressively to reduce that cost of production. So, the losses that the Honourable Member would have alluded to, that would be reduced tremendously. And also, we must look back at not only the destruction that was done to GuySuCo but also the cost [incurred] in 2021 when almost the entire cultivation was destroyed by floods,” he stated.
Currently, sugar is being produced at US$1.131 per pound and is sold at US$0.171 (17 cents) per pound.
“We are working to reduce tremendously the cost of production. Apparently, GuySuCo has been advised that they are looking at 51 cents reduction this year… As long as we produce more sugar, and sugar is not a thing where if we produce more you pay more. If you produce sugar more, the cost of production will be reduced,” the Minister noted.
The sugar sector contracted by 21.8 per cent in 2024 with GuySuCo producing 47,103 tonnes from the 63,276-tonne target. The low production was as a result of the impact of El Niño, compounded by labour shortages across the industry throughout last year.
However, the sugar industry is poised to turn around this year with an ambitious target of 101,000 tonnes is set for 2025.
When questioned about the plan to achieve this target, Mustapha pointed out that 40 per cent of GuySuCo’s operation is mechanised, and they have worked to enhance yields from the sugar canes.
“So, we’re taking less canes to make the amount of sugar. GuySuCo indicated to me that with the amount of canes that they have and with the factories now being rehabilitated that they will make the sugar [target] of 101,000 tonnes,” he added.
He credited the contributions of the technical experts from Cuba and India who were brought here last year to support GuySuCo’s revitalisation efforts, focusing on areas such as field management, agro-management and crop management.
“The technical persons that came from Cuba and India are making a valuable impact and working along very closely with the local people… They bring good expertise to use and we are very optimistic that with the kind of expertise that they have and with our people, we will turn around GuySuCo,” the Minister added.
The Agriculture Minister went on to disclose to the Committee of Supply in the National Assembly on Friday that GuySuCo is spending approximately $150 million annually for the technical experts – 11 from Cuba and seven from India.
“So, I am not too bothered when people who are not performing, and they were relieved of their duty; making all kinds of remarks. So, I want to say… already, 40 per cent of the cultivation has been mechanised. These people are also helping us with the factories,” he stressed.
Mustapha was referring to recent comments made by a former Technical Director of Operations at GuySuCo, who criticised the hiring of these experts, saying the Cubans have not made any tangible contributions – something which GuySuCo has already dismissed.
Last year, some $15.5 billion was expended on support to the sugar industry, including the acquisition of six new cane harvesters; conversion of 2,734 hectares of land for mechanised cultivation and harvesting, and rehabilitated critical revetment works.
In 2025, an additional 3,068 hectares of land will be converted to support mechanisation. Key investments will be made to acquire additional field equipment, rehabilitate field infrastructure, and construct over 17 kilometres of all-weather roads across the industry.
For these efforts, some $13.3 billion was approved on Friday – as part of the Agriculture Ministry’s $104.6 billion budget – to support and rehabilitate the sugar industry this year.
Earlier this month, Minister Mustapha said estate managers have already been warned to cease their “boss-boy attitudes” and work closely with the workers in order to boost morale.
“I know there are still problems there, and I instructed GuySuCo that they must work very closely with the workers, so they can build their morale. We must not have this kind of ‘boss boy’ attitude on the estates. I told them this already. I myself will be visiting some of the estates and see what is going on, without announcing I’m going in there,” the Agriculture Minister had noted.