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Sep 16, 2016 News
-pilot project to help diversification programme, says CEO
The Guyana Sugar Corporation (GuySuCo) is moving to convert 485 acres of lands at Wales
Estate to plant rice.
The move, according to Chief Executive Officer, Errol Hanoman, is part of a bigger programme of diversification by the cash-strapped Guyana Sugar Corporation (GuySuCo).
In an ‘Invitation For Bids’ advertisement published by the Guyana Chronicle yesterday, GuySuCo, through its Engineering Services Department, LBI, said that it wanted proposals that will see the clearing of 485 acres (206.3 hectares) at the Wales Estate.
GuySuCo said that lands were used to plant cane which were taken out of cultivation.
“Lands are required to be cleared of all vegetation to facilitate laser land leveling for rice cultivation,” the advertisement disclosed.
GuySuCo asked that bidders assemble at the Administration Building, Wales Estate this afternoon, from 14:00hrs for a site visit.
The planting of rice would be a major shift in the way the country’s sugar company is doing its business.
GuySuCo last experimented with rice planting in the 1980s, explained Hanoman.
Hanoman said that as was announced, the entire Wales Estate, West Bank Demerara, will be taken out of cultivation- about 7,000 acres of it.
A number of private cane farmers in the Canal Polders area have opted to remain in the business, but quite a number of them have decided to convert to rice and other crops.
“Yes, this pilot project of the 485 acres is part of GuySuCo’s diversification programme,” Hanoman disclosed.
”It was done in the 80s at Blairmont (West Berbice) as part of the diversification also. This is the beginning to ensure GuySuCo become profitable,” the CEO said.
Earlier this year, Government announced that Wales Estate, the country’s poorest performing sugar factory, will be closed in December with some staffers to be taken up by the Uitvlugt Estate.
The new administration had been hinting at the closure of the Wales Estate since last year. It was even mentioned in the report by the Commission of Inquiry into GuySuCo.
Cost-cutting is one of the key actions for the industry which has been facing tough times over the last decade, especially.
Despite racking up billions of dollars in losses annually, the new David Granger administration last year did not bite the bullet to close the sugar industry, which currently boasts around 16,000 workers across the coastlands in Berbice and Demerara.
Rather, it announced a number of initiatives including better agriculture, diversification, management shakeups and eventually the closure of the 100-year-old Wales Estate.
The canes from private farmers would be taken to Uitvlugt, another estate that is located on the West Coast Demerara.
The closure had not gone down well for the unions. “Diverting funds from the other estates to keep Wales afloat would seriously jeopardize the future of these estates. This cannot be allowed to happen. It is impossible to make sugar production at Wales viable. This is made worse by the gloomy outlook for sugar prices for the foreseeable future,” GuySuCo had said earlier this year.
Wales Estate is projected to record a loss of between $1.6B and $1.9B.
The factory will finally shut its gates to operations at the end of the second crop for this year.
GuySuCo had said that it will be exploring the feasibility of alternative ventures utilizing the Wales lands.
The David Granger administration had vowed actions in the lead-up to last year’s early general elections, immediately moving to appoint a Commission of Inquiry.
The industry managed, last year, to surpass the original annual target for the first time in over a decade. However, the industry still owes billions of dollars to creditors, including banks and suppliers. Its cost for producing sugar is double its export price.
A new factory at Skeldon along with expanded cultivation, failed to kick-off despite the US$200M spent. The cost to keep that new factory up and running has been a drain on GuySuCo, the new administration has said.
With regard to Wales Estates, the statement said that 60 percent of the drainage and irrigation is run down and 75 percent of the bridges in poor shape.
As part of its cost-cutting initiatives, GuySuCo has already moved to consolidate its operations on East Coast Demerara, with the merging of the LBI and Enmore operations and eventually moving the Ogle headquarters to LBI.
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PLANT RICE? Hmm, For some reason ALL the Canadians went back and sold out their rice estates and equipment. Under the PPP they were getting $6000 per bag, APNU promised them $9000 and could not pay them $900 forcing them to close shops. Now we are going to waste more land to plant rice and DO what with it? This government is going around is circles with lack of vision and leadership skills….
Rexy
And who plant rice?