Guyana’s response to sugar challenges noted at regional sugar meeting

Georgetown, GINA, November 20, 2007.

Commissioning of the new sugar factory at Skeldon, East Berbice, during next year and establishment of the Enmore packaging plant were highlighted at the Sugar Association of the Caribbean’s 148th Meeting of the Board of Directors held on November 15 and 16, 2007, in Belize.
These projects were noted among Guyana’s major developmental initiatives to maintain sugar production and develop markets for products from a diversified industry as part of efforts to mitigate the impact of the price cuts by the European Union (EU).
During the meeting, reports were made on activities being taken in the various sugar producing countries such as Guyana, Belize, Jamaica, Barbados, Trinidad and Tobago to deal with current challenges and further develop their sugar industries.
The forecast production figures totalling 321, 000 tonnes for the year 2007/2008 and the unusual weather pattern which negatively affected sugar production in all member countries were also discussed.
            The BOD outlined its total disagreement with the EU’s decision to denounce the Sugar Protocol (SP) while in the midst of negotiating an economic Partnership Agreement (EPA) with the Region.
It was stated that given the fact that the SP existed for 32 years to the mutual benefit of the Africa Caribbean and Pacific (ACP) sugar suppliers and EU refiners, the decision of the EU was considered to be untimely and in bad taste.
            In Guyana, Government has been placing much focus on developing the sugar industry which contributes between 17 and 18 percent to the Gross Domestic Product (GDP) and provides employment for more than 30, 000 persons.
            Efforts are being made to reduce the cost of sugar production below US11 cents per pound. The current cost of production ranges between US17 and 18 cents per pound.
The Skeldon Sugar Modernisation Project (SSMP), establishment of the packaging plant at Enmore and upgrading of the estates are among initiatives to realise this vision and support further advancement of the sugar industry.
            Work is currently being done to ensure that the diesel generators at Skeldon are commissioned next month and commence the supply of 7.5 megawatts of electricity to Berbice.
            In addition, there are plans to establish a distillery, secure investments for a refinery and use sugar-cane as a source of bio-diesel, when sugar production has increased.

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