Problems with GuySuCo due to bad management

Dear Editor,

Finance Minister Winston Jordan, while speaking about the decline of the economy, stated that we have to do more manufacturing. He was at the time speaking about adding value to our raw materials and creating wealth.

Mr. Jordan has indeed made a good case for not closing or downsizing the sugar industry. This industry is best placed to do a lot more in the manufacturing sector. There are already billions of dollars sunk into it, and its raw materials are renewable resources.

This is the time to really transform the industry into a modern complex, producing many different products, adding value and creating wealth. This is not the time to contract, but to expand the industry and allow it to reach new heights.

After all, the sugar industry experienced many crises throughout its history, and it has always risen to the challenge each time, increasing production. This time should be no different.

With little investment from Government, or with private investors in joint ventures, GuySuCo can produce and add great value to many of what is now produced. A joint venture in a refinery would be a sound investment. After all, the Caribbean has a market for more than two hundred thousand tons of refined sugar. GuySuCo can easily supply the bulk of that.

GuySuCo’s Skeldon Estate is already producing electricity with the use of bagasse. This could be hugely profitable, and more estates could also do likewise.

It is apposite to note that Barbados has kept part of its sugar industry going mainly because of its co-generation of electricity.

The industry can produce a host of other products that would have ready markets. Many of these have been spoken about before. Fuel alcohol can be produced with not much investment and without affecting the operations of Demerara Distillers Limited (DDL); another distillery can be very profitable.

Paper products such as cardboard, writing and printing paper, etc are only a few of the products that could also be manufactured. These items are being produced by the sugar industries in many countries, including India, Cuba, Brazil, etc.

In adding value and creating other commodities, we would be enhancing our wealth generally.

It should be pointed out that Cuba developed its pharmaceutical sector on the basis of the sugar industry.

A lot of the problems with GuySuCo are due to bad management. The fields, which are most important in the production of sugar, are being terribly mismanaged. This is evident in the low level of yields, which leads to low production.

We can recall that, in 2015, the industry showed clear signs of a turnaround. Indeed, so strong were the signals that the APNU+AFC Administration claimed it as one of its successes. That came about because the then Chief Executive Officer, Dr. Raj Singh, had paid close attention to both fields and factories. In the fields, he was even moving to bring down costs by using liquid fertilizers; and he implemented many other innovations that would save millions of dollars. The factories performed well because of their timely maintenance. That is why 2015 was so successful.

With lack of cheap energy and the killing of the Amaila Falls Hydro Project by the APNU+AFC Administration, sugar offers the best opportunities for manufacturing. If Mr. Jordan is serious, if he is speaking on behalf of the regime, then he should urge that the decision to close the industry, or a large part of it, be reviewed. At this time, when workers not only in the sugar industry but also in forestry, communication and mining are losing their jobs, this could absorb that labour force while saving the jobs of the workers on the estates

Sugar can still be the saviour.

Sincerely,

Donald Ramotar

Former President