Latest update March 28th, 2024 12:59 AM
Feb 04, 2009 Letters
Dear Editor,
Consequent upon recent articles by two of your columnists on matters pertaining to the marketing of sugar by the Guyana Sugar Corporation Inc., we wish to respond as follows:
The sugar industry aims to become competitive and sustainable via increased production, reduced costs, value added products and diversification.
The Marketing Strategy of GuySuCo is developed by Management, approved by the Board of Directors, confirmed by the stakeholder and outlined each year in the Corporation’s Annual Business Plan. The European Union also reviews the Business Plan as it serves as the basis for the delivery of Accompanying Measures as a result of the cut in the price for sugar.
Quantities to be supplied to various markets as well as the budgeted and actual prices are updated monthly and reported against revised production estimates. The information is provided to the monthly Board of Directors’ meeting.
As production changes against budget, the marketing plan is adjusted to ensure that the Corporation receives the best weighted average price per tonne of sugar.
The EU market has never been compromised and GuySuCo has fully met its Sugar Protocol quotas and the Complementary Quantity Quotas up to the 2007/2008 quota year. In addition, GuySuCo has delivered all its assessed additional quotas to the EU market that arise from shortfalls in production of other ACP supplying states. The EU does not permit entry of sugar over and above a country’s assessed quota.
At no time did the Corporation supply CARICOM or any other export market at the expense of a more lucrative market. The alternative markets for surplus sugar would be the raw bulk market destinations which offer much lower prices than CARICOM as they are tagged to the world market price.
Building the market in CARICOM was not automatic and the Corporation faced many challenges in countering State and private interests as well as periods of depressed world market prices. Reliability, good customer service and a high quality product eventually removed the barriers and there is now full acceptance of Guyana’s sugar in CARICOM.
The value of the protected market in CARICOM is a main pillar of the strategic plan, and GuySuCo’s business operations. From 2009 onwards, the CARICOM market is potentially more lucrative than the EU market. Additional value will be obtained via packaged sugar sales.
The 2008/2009 quota year has been extended to 15 months (July 1 2008 to September 30 2009) and its culmination marks the end of the Sugar Protocol arrangements. Guyana’s EU quotas for this period is estimated at 310,000 tonnes, made up of the Sugar Protocol quota, the Tariff Rate Quota that was negotiated under the Economic Partnership Agreement between the EU and the Cariforum and the shortfalls arising from lack of production in Trinidad and Tobago.
On the basis of the crop estimates provided regularly since July 1 2008, the marketing plan has been scrutinized and amended to ensure full delivery of the EU quotas. Sales to CARICOM and the local market were evaluated regularly and appropriate decisions taken in a timely manner in consideration of optimizing earnings from the reduced production.
The Corporation will subject itself to any level of scrutiny or assessment to determine the soundness of its Marketing Strategy and whether there is malfeasance, corruption or wasted expenditure of billions of dollars in the marketing of sugar.
We trust that the aforementioned will serve to clarify and/or elucidate on the matters raised by your esteemed columnists.
Nisa Surujbally
Director, Marketing and Trade
Guyana Sugar Corporation Inc.
THIS IDIOT TELLING GUYANA WE HAVE NO SAY IN THE 50% PROFIT SHARING AGREEMENT WE HAVE WITH EXXON.
Mar 28, 2024
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