– over 100 more to be employed next year; $40M spent so far on preparatory work
By Navendra Seoraj
CULTIVATING an environment for the sustained growth and development of Guyana’s ailing sugar industry has started across the belt, with the management of the shuttered Skeldon Sugar Estate, for example, hiring 232 persons to lay the foundation for the rejuvenation of a facility which was once heralded as a potential savior of the industry.
The Skeldon Estate, like the Rose Hall and Enmore Sugar Estates, was closed in 2017 by the former A Partnership for National Unity + Alliance For Change (APNU+AFC) Government. The closure of those estates leftover 7,000 persons without a job or source of income.
The Guyana Sugar Corporation (GuySuCo), “in its glory days”, was referred to as the backbone of Guyana’s economy, as the company employed roughly 16,000 persons; it was a major source of foreign currency; and a provider of community healthcare, drainage services, and welfare facilities.
The industry has since been reduced to a level of insolvency and instability, but the new Government believes there is still hope, although there are production challenges relating to low productivity, high cost of production, lack of competitiveness, and poor management.
In the next five years, starting with Budget 2020, the Government plans to implement measures to promote a diversified agriculture-based economy, create more jobs, and increase the income of farmers.
Over at the Skeldon Estate, which is expected to start sugar production in 2022, some 814 persons have already registered for re-employment, but the estate will be closing off its total staff capacity at 240 for this year.
SEVERED WORKERS REHIRED
“We have employed 232 persons so far, but we have registered 814 people in addition to what was employed… the registered persons and those who were hired are all persons who were severed from the estate,” said Manager of the Skeldon Sugar Estate, Vishnu Panday, during an exclusive interview with the Guyana Chronicle, on Tuesday.
He said the estate will be increasing its staff capacity to 360 persons next year and ultimately to 1,800 persons when the estate is fully operational.
Persons currently employed with the Skeldon Estate are tasked with completing preparatory work and laying the foundation for a full recovery of the estate.
Panday told the Guyana Chronicle that the estate has so far expended $40 million on wages, salaries, agro-chemicals, and for the preparation of the cane fields, among other things. Funds have also been spent to reopen the estate’s field workshop.
Additionally, some 193 hectares of cane materials have been prepared and are being nurtured for planting next year. The aim at Skeldon is to cultivate 700 hectares of cane materials next year, ahead of production in 2022.
It was reported that the Skeldon Estate is the only sugar factory in Guyana with a diffuser technology that allows for automation. Based on past results, the factory peaked at 86 percent efficiency on automation, and the team headed by Panday is hoping to push this number higher to ensure the factory realizes its true potential.
NO EASY TASK
The task ahead is no easy one for the current administration, as millions of dollars in equipment were left to deteriorate, rendering them inoperable or in some cases repairable, but at a ‘hefty’ cost.
But the Government has already released $3B to bail out GuySuCo, of which $2.2B will be used for the re-opening of the three estates and the remaining $0.8B will be used to re-capitalize the current assets to help achieve outlined objectives.
It was reported that the Rose Hall Estate will be the first of the three estates to be re-opened and is expected to begin grinding in 2022. The sugar corporation has so far re-hired over 690 persons to work on the three shuttered estates. So far at the Rose Hall Estate, some 270 persons have been hired to do preliminary work while 194 persons have been hired at Enmore.
As work continues on those shuttered estates, harvesting of sugar cane at operational estates has intensified, with production moving to 52,139 metric tonnes of sugar for the second crop of 2020.
The Guyana Chronicle was told that the second crop, which spans over 20 weeks, is anticipated to produce 69,480 metric tonnes of sugar. Although there are positive signs, the industry continues to be affected severely by the rainy season and by the consequential effects of the novel coronavirus (COVID-19) pandemic.
In view of the many challenges, teams across GuySuCo’s three sugar producing Estates (Albion, Blairmont, and Uitvlugt) have implemented systems to continue production in Berbice until December 2020.
One of the strategies is greater utilization of the “bell loaders” to accelerate loading of sugar cane onto the punts.
The Corporation, as part of its strategic economic turn-around plan, is working to reduce the amount of canes being transferred as ‘carry over cane’ to the first crop of 2021.
AGGRESSIVELY MOVING AHEAD
Further, the Corporation is aggressively moving ahead with its efforts to market packaged sugar, often referred to as direct consumption sugar, among other value-added products to markets in the Caribbean, North America, and Europe. Packaged sugar and value-added products will be sold at every supermarket and shop locally.
It is common knowledge that the resuscitation of Guyana’s ailing sugar industry will have to be done through a Public-Private Partnership, and, already, investors from Asia, North America, the Caribbean, and Guyana have formally signaled their intention to join this process.
The Government of Guyana, in September, had advertised for Expressions of Interest (EoIs) from financiers who are not just interested in investing in sugar but in being part of the industry’s resuscitation.
Chief Executive Officer (CEO) of the Guyana Sugar Corporation (GuySuCo), Sasenarine Singh has said that the Government has received 10 EoIs from foreign companies, and one proposal from a local investor.
Information on the investors’ identities remain confidential at this time, but Singh, during a press briefing at GuySuCo on Monday, said the proposals will soon be reviewed.
Singh, while not delving into the details of the actual proposals, said interests have been expressed in sugar refinery, ethanol production, agro-energy, a distillery, and packaged sugar, among other things.