July 28, 2007

 

Remarks notes by  Hon. Robert M. Persuade, MBA, M.P.

Minister of Agriculture to the

Demerara Honours’ Roll, Uitvlugt Community Centre

 

Congratulations to all honourees. Your contribution must be an inspiration to not only your colleagues but all those involved in the Corporation. On the even of our 173^rd Emancipation celebrations, I wish to recall our ancestors - slaves and indentured servants - who built this sugar industry. You honourees are proud descendants of our forebears known for their hard work, commitment and courage in the face of humanity’s worst adversities.   

 

By you r hard work you have ensured that our Demerara Estates remain vibrant and productive. We have thwarted the movement externally and by some local opposition elements to close Demerara Estates.

 

In fact, we have just concluded an inquiry into a seeming deliberate programme to run-down the West Demerara estates. I wish to restate that there is no plan to close any of the Demerara Estates and these estates functioning are part of our on-going restructuring and modernizing plan of the sugar industry.  

 

An examination of the performance of the Demerara Estates in recent years points to a positive trend in terms of performance and recovery as in the case of East Demerara from the 2005 floods.

 

East Demerara Estates

 

§         The estate’s 2006 financial performance reflected an improvement over the previous year, which was due to increase in production levels and non-achievement of some field programmes

§         Sugar Production: for 2006 in the East Dem. Estates was 57,295 against a budget of 55,920, a 25% increase from 2005.

§         Tonnes Cane per Hectare:  For LBI, increased substantially from 50.64 in 2005 to 62.16 in 2006, while at Enmore yield increased from 58.30 Tonnes Cane per Hectare in 2005 to 69.01 in 2006.

§         Burning to grinding at both LBI and Enmore was within the target of 80% in 48 hours with the second half posing difficulties with the targeted night burning because of security issues.

§         Factory performance for both Enmore and LBI were characterized by Factory Time Efficiency of 96.27% and 92.00 % respectively. (Enmore) Factory was adjudged the most improved among all the Booker-Tate managed factories in the world.

 

WEST DEMERARA ESTATE

 

 

§         Sugar Production: West Demerara Estate for 2006 was 41,803 tonnes against an LE of 48,716 tonnes which represents 90.5% achievement.

§         Land Preparation: achieved at Wales was 91.7% of the budget while at Uitvlugt it was 63.4%.

§         Planting: achieved for the year at Wales was 102% of the budget while Uitvlugt achieved 59.4%.

§         Factory Time Efficiency for Wales was 95.6% while Uitvlugt was 87.6%.

 

These Estates still experience challenges:

 

§         Lowering costs of production

§         Maintaining effective drainage mainly at West Demerara Locations.

§         Reducing noxious weeds population

§         Reducing accidents

§         Reduced opportunity time (due to climatic changes)

§         Skill shortages resulting in high machine down time and repair costs.

§         Labour shortages and high rate of absenteeism coupled with low productivity.

§         Lack of Capital Investment resulting in poor infrastructure – dams; punts

§         Decline in farmers contribution especially at LBI/GD and Wales

 

 

GUYSUCO management has assured me that much work has started to respond to these challenges. These include:

 

§         Rehabilitation of 25% of the Uitvulgt cultivation annually

§         Maximise use of Bell Cane Loader to buffer for labour shortages and cane supply to the factories

§         Converting traditional layouts to Broad Beds to facilitate mechanized operations

§         Intensifying safety awareness among the work force

§         Encourage farmers in maintaining high levels of production assisting them with rehabilitation of their farms and supplying them with better varieties.

 

The Demerara Estates are embracing the Company’s strategic plan by working to improve their efficiency level as set out in the Agriculture Improvement Plan (AIP)

Conversion work commenced at Enmore in 2005 is now being reproduced at other locations in the region.

 

Mechanised field operations will allow for increased productivity and simultaneously lowering the costs of production thereby making GUYSUCO more competitive in sugar world.

 

Nationally, we are accelerating the programme to cushion the effects of the change in EU sugar regime which is expected to cost the Corporation between 7-8 billion dollars annually in reduced revenue. But at the same time we continue to be a victim of act of betrayal by the European Commission in its treatment of the Sugar Protocol.

 

For some time now the EC has adopted, in a systematic manner, measures aimed at slowly killing the Sugar Protocol.  The European Commission is now hinting at its design to kill the Sugar Protocol come October 1 2009. Since that veiled threat in April, now in July the EC attempts to rationalise why “the Sugar Protocol has to end” by its Trade Commissioner Peter Mandelson.  

 

The European Commission has totally disregarded the joint commitments of Europe and the ACP states under this long standing inter-governmental trading agreement.   Guyana and other ACP sugar producers are again being betrayed by the European Commission.

 

The EC’s proposal to denounce the Sugar Protocol is totally unwarranted by the very terms of the Protocol.

 

Moreover, in keeping with the Cotonou Partnership Agreement, which does make provision (Art 10) for denunciation of the Protocol, the contemplated action by the Commission is not borne out of any juridical security.

 

This is now a straight case of Europe’s duplicity and dishonesty in ensuring the protection of its own interests, that of its beet farmers and sugar refiners while discarding those countries that faithfully honoured its obligations and commitment to supply raw sugar for European industries for more than three decades.

 

Having sucked the cane dry, the EC is ready to spit out the Protocol signatory countries.

 

Is this a way to mask the continued pillage of the poor by the rich?

 

While, our investment of in excess of US$180M in anew sugar factory at Skeldon, a packing plant at Enmore, a sugar refinery, a distillery and even an ethanol plant will ensure that our sugar industry rides will make the industry profitable, it would require much more commitment and steadfastness from all of us.

 

Here I want to implore better relations and interaction between management and workers and union. All of us must recognize that every single day at work matters. All of us must recognize that every single piece of the Company’s asset must be managed well. All of us must play our part to reduce cost and improve productivity.

 

The Government declaring its commitment to sugar and workers in the sector is clear. We are investing huge sums needed for a modern sugar industry.

 

But if we do not make adjustments at the individual level – both management and worker – the changes could be more painful for you and our national economy. There is an exciting future for sugar industry in Demerara and Berbice. With this type of hard work given to the sugar industry by you the honourees I am confident that we will as a country overcome the tidal wave of change sweeping across the world sugar industry. And Guyana’s sugar industry would be safe, secure

 

Congratulations once more to the honourees and your relatives.