So what all dem estate people have to say? I think Gil might have some input. Do we plant a lower grade sugar cane, for example?
VP, offhand, I don't have concrete numbers, but I can give you a general idea. In Guyana, the sucrose content of sugar cane is generally lower than the sucrose content of Cuban cane, for example. More canes are required to produce one ton of sugar in Guyana. More canes means more cane-cutters. With a vibrant trade union like GAWU, cane cutters' wages and bonuses are always increasing, which means higher labour costs. Add to that even higher managerial costs, and GuySuCo's production costs become a burden. Not to mention mostly outdated factory plant and equipment which are inefficient. All of which have left GuySuCo with a $90 billion debt.
As I'm on the subject of sugar, I recall reading in the mid-1970s a great study of the sugar industry by Dr Clive Thomas. Even then, production costs were high, ie, before nationalization.
One more thing. I don't know if the Sugar Industry Labour Welfare Fund still exists. In the past, a percentage of sugar revenue was allocated by law to the SILWF, adding to production costs.
Why is the sucrose content low compared to Cuba?
One factor is the nature of the Guyana coastal soil. Sugar cane fields guzzle mega-tons of fertilizer, yet the cane plants can't achieve desired sucrose content.