Dear Editor,
The recent brouhaha over GuySuCo was missing focus on solutions.
There are two key objectives for GuySuCo:
1. Becoming profitable
2. Preventing layoffs
These two objectives are not at odds with each other, and can be accomplished. To become profitable, GuySuCo needs to shift its focus to:
1a) Producing beverage alcohol
DDL and Banks DIH could have been strengths of GuySuCo in the past, and now is the time to develop the beverage alcohol portfolio of the company. Supplying the main ingredient necessary for world-class quality beverage alcohol, and marketing & selling its products within the region and around the world should be the main strategic focus of GuySuCo going forward.
A partnership with DDL and Banks DIH would be mutually beneficial, and the resulting profitability would ensure that GuySuCo prospers over the long term. This would also help Guyana develop its beverage alcohol portfolio offering in this very profitable global market.
1b) Adjacent products
The Covid pandemic and the Government’s thrust into healthcare offers additional opportunities for the use of GuySuCo as a source of profitable products that would leverage the new capabilities developed in 1a)
1c) White Sugar
There is an increase in profitability that comes with moving into this more refined product, and an agreement has already been made to provide the region with this product.
Executing this strategic initiative needs to be achieved in order to add to the profitability of the company.
Overall, for GuySuCo to achieve profitability, it would require investment in R&D and new capabilities, and a partnership with the leading companies in the beverage alcohol space. Given the previous experience of GuySuCo in this pursuit, the company should be able to quickly transition.
2a) Developing the workforce
With a transition towards a new strategic focus, many employees can be upskilled to support the new focus of the company. The strategic shift would also give the company the flexibility to mechanise, expand acreage, and maintain the current employee base.
2b) Partnering with Industry Leaders
Brazil continues to be the most efficient player in the sugar industry. GuySuCo must partner with the leaders in the Brazil Sugar Industry in order to embrace their best practices so as to be able to increase productivity and yield.
I recommend that the Board of GuySuCo meet and discuss this proposal, so as to chart a clear vision for the future of the company. Once agreed upon, they must act quickly towards the development and execution of their strategy to achieve their new vision.
I have made these initial suggestions to answer the “Where to Play?” and “How to Win?” questions that are necessary to quickly turn around the company. Moving in this direction would help GuySuCo achieve future success.
Best regards,
Jamil Changlee
