Sugar production 35 per cent below projections
Equipment breakdowns and the rainy weather have resulted in this year’s sugar production for the second crop so far being nearly 35 per cent below targets.
The two trade unions representing sugar workers have expressed concern but the Guyana Sugar Corporation (GuySuCo) has cited the abovementioned issues as reasons for the production shortfall and has expressed hope that it will improve.
In a joint statement, the Guyana Agricultural and General Workers Union (GAWU) and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) said that at a meeting with GuySuCo on Tuesday, it was learnt that the second crop is nearly 35 per cent below its anticipated production. The unions pointed to a number of equipment breakdowns.
Stabroek News reached out to GuySuCo for a response on the unions’ concerns and was informed that while production is below target, the corporation is hopeful it will improve. Finance Director Paul Bhim acknowledged that there have been problems with factory equipment. He said that these problems have affected production but efforts are being made to rectify the issues.
According to Bhim, GuySuCo is currently behind budgeted production due to a late start resulting from the extended rainy season which continued into July and August. He explained that usually harvesting begins in the last week of July but because of rain, this was pushed back to the third week in August. Despite these setbacks, GuySuCo is still anticipating that production targets will be met as they hope to harvest canes before the rains return.
“We are worried but as of now, the crop has picked up. If, however, the December rains come earlier, we might not be able to harvest all the canes especially on the Albion Estate,” Bhim said.
In their statement, the unions observed that the 18-week crop is in its seventh week of production and as of September 28th, 21,869 tonnes of sugar was produced when, in keeping with the production schedule, the figure ought to have been 33,892 tonnes. “… GuySuCo, at that time, was in a deficit of 12,023 tonnes or was nearly 35 per cent below its anticipated production,” the statement said.
Disaggregation of the data showed that the Albion Estate produced 10,261 tonnes of sugar, below its 16,585 tonnes target for the period while the Blairmont Estate produced 6,624 tonnes of sugar rather than the 9,882 tonnes target. At the Uitvlugt Estate, 4,984 tonnes of sugar were produced, below the 7,425 tonnes target and Industry managed to produce 21,869 tonnes of sugar rather than the target of 333,892 tonnes. The figures represent shortfalls of 38.1, 32.9, 32.9 and 34.6 per cent respectively.
At Albion, where the largest deficit was recorded, the unions said that the factory has been plagued by several breakdowns resulting in nearly a week of lost operations.
“We understand that the issues that popped up are not in a particular section but have appeared in many of the various areas…In one instance, a breakdown resulted after one of the wire ropes that hoists cane into the factory burst,” the statement said. It added that the vulnerability had been drawn to the attention of management but nothing was done.
The statement said that with regards to Blairmont, the factory has defective components which are contributing to sugar losses. It said that workers, through their shop stewards, have highlighted the issue to management “which apparently is hamstrung from really alleviating the issue.” Additionally, the workers have expressed concern about the quality of canes available for harvesting, which they say is producing below estimate yields, according to the statement.
At Uitvlugt, the unions said, while the estate over the last two weeks has managed to surpass its weekly production target, it still continues to experience difficulties with the factory. “For the last few crops, the Uitvlugt factory has been plagued by several problems. Extensive works which are said to be executed during the out-of-crop period, it seems, are not effective and we wonder whether there is need for closer examination,” the unions said.
They contended that while
GuySuCo is likely to point to a lack of finances as an explanation for the issues, a $30 billion bond obtained for the industry was intended to address such matters.
“We understand that notwithstanding public pronouncements ... the chasm [between GuySuCo and the Special Purpose Unit of the National Industrial and Commercial Investments Limited (NICIL-SPU)] persists. GuySuCo disclosed that its punt rehabilitation programme is being held up as NICIL-SPU is refusing to release funds to purchase the steel required,” the statement claimed.
GAWU has contended that it seems that the sugar industry is being conveniently or maybe willfully, ignored by the powers that be and said that there appears to be no plan regarding the utilisation of the monies. It added that there is an urgent need to arrest the present situation. (Thandeka Percival)