Government failed to read the ‘writing on the wall’

 
In just about four years, Guyana stands to lose its largest bulk sugar market – the European Union. This is as the EU ends the quota system. Under the quota system, Guyana had a secure market for its sugar. This was as we would say, “Money in the Bank.” But, this will end in 2017.
President Donald Ramotar has admitted that the sugar company is in crisis. This is not news. For years now the ‘writing on the wall’ was sending the message that measures must be taken to make the industry viable. The government and the leaders in the sugar corporation failed to heed the message. Even at this 25th hour, they are still slumbering while the thousands of sugar workers ponder what will become of their livelihoods and the future of their children.
A few weeks ago, the Government of Guyana and the EU signed an agreement that could see Guyana receiving 23.355M Euros. However, the industry has to meet a series of specific conditions in investments and performance in areas including replanting, land conversion, mechanical harvesting, drainage works and factory improvement.
For quite a few years now, low performance in these very areas has been the cause of GuySuCo’s decline. As it stands now, the Board of Directors of GuySuCo is yet to finalize the company’s Strategic Plan for 2013-2017.
Since 2006, the EU has provided 91.5 M Euros to Guyana as Sector Policy Budget Support. It is unclear how that money directly benefitted the sugar industries. An additional 25.1M Euros could have been accessed, but due to having failed to meet specific criteria, the country lost out on this funding.
Back in 2008, The Corporation said several factors including inclement weather, strikes and slippage in the operation of the new Skeldon factory, led to a delay of the ship contracted to take sugar to Europe. GuySuCo had to pay demurrage in the sum of US$200,000 bringing the total loss in revenue to US$1.5 million.
The Alliance For Change has issued in its Action Plan, proposals to make the industry viable and lift sugar workers out of the poverty in which most of them survive. The AFC will build a sugar industry that is based on innovation and sustainability, where the infrastructure and technology needs of the industry are in place to facilitate GuySuCo and the private sector to thrive.
The AFC’s Action Plan places primary focus on developing a sugar ethanol industry in Guyana. The AFC believes that we must use our land, our talent in the industry, our access to the US Ethanol market and the private sector partners to better position the nation to reap the beneÛts from our competitive advantage at producing ethanol cane. Sugarcane is among the cheapest source of ethanol feedstock.
The AFC’s sugar action plan will create many new jobs in the industry in the following areas:
1. Engaging investors (local and international) into developing the Canje Basin for ethanol cane with nearby distilleries for producing ethanol for the international market;
2. Use our abundant sugar/molasses to produce ethanol for local use – begin legislation for Guyana to adopt the E-10 Policy;
3. Incentivize Guyoil and other oil companies to invest in mixing-tanks for blending the E-10 (10% Ethanol gasoline);
The AFC’s plan for sugar is to:
1. De-politicize and professionalize the decision-making process at GuySuCo;
2. Invite an international Technical Mission from Brazil, India or other countries with core competence in sugar technology to analyze GuySuCo with a view to revising the Sugar Action Plan;
3. Establish a sugar factories rehabilitation programme to make them eÛcient and cost eÛective;
4. Re-engage local expertise to change the agronomical practices in the Ûeld to boost yield;
5. Mechanize the cane harvesting process which will complement workers as well as introduce many more skilled jobs;
6. Introduce a Cane-Quality Assurance System that incentivizes cane farmers based on cane quality;
7. Involve the private sector in the Ûnancing and managing of the new cane lands in the Upper Corentyne area;
8. Provide funding for research, extension services and a scholarship programme at NARI, IAST and UG to produce a core competence for the industry, along with revising the curriculum at the Port Mourant Training Centre to make it more relevant to the challenges of the industry;
9. Accelerate the development of the Berbice Deepwater Harbour with a temporary sugar storage facility in Berbice to reduce the cost of transporting sugar and ethanol to the international market;
10. Accelerate the development of a sugar reÛnery;
11. Enhance the quality of life of sugar workers within their communities through better facilities, sports and social amenities;
12. Not privatize Guysuco but raise vitally needed capital by selling premium shares to sugar workers.
These are among the proposals the AFC has publicly put forward to pull GuySuCo back from the brink of total failure which has been brought on by over-paid, highly under-productive managers and political tethers.