Latest update April 19th, 2024 12:59 AM
Mar 08, 2022 News
– GuySuCo cites mechanical failure to Mill turbine gearbox
Kaieteur News – The Guyana Sugar Corporation has confirmed that the Uitvlugt Sugar Factory is presently out of operation due to a mechanical failure of its #1Mill gearbox.
In a statement on Monday the sugar corporation said the factory went down on Saturday. It added that immediately after the mechanical problem was detected the technical team kicked into action and had the required repairs commence at a fabrication workshop. “The promised delivery date from the workshop is March 8th, 2022. If this plan is fulfilled, grinding operations will recommence on the evening of March 9th, 2022 where some 600 punts of cane are scheduled to be crushed,” GuySuCo said. The corporation added that its experts are testing the cane every day to determine the purity level which will help to make production decisions. “However, at no time did the Executive Manager considered dumping any of these canes…” GuySuCo said in response to claims that the canes were being dumped.
GuySuCo last year produced 30,865MT less of sugar when compared with 2020. Based on a report, GuySuCo’s pre-audited production stood at 58,025MT of sugar in 2021 compared to 88,890MT in 2020. Despite the significant shortfall, the Corporation had said it met all the needs of the local market for 2021. It was explained that the shortfall was a result of the loss of some 35 percent of the standing cane during the 2nd Crop of 2021 due to the flood.
“At Albion, where 50 percent of the production was programmed to be made, the mortality rate for the standing canes planned to be harvested for the 1st Crop of 2022 is estimated at 80 percent due to the floods. On the Berbice Estates where more than 77 percent of the production is made, the rainfalls in 2021 were 72 percent more than the previous year,” GuySuCo detailed, while noting that it drained some 4.5 million tonnes of water off the land daily during the 65-day flood.
The ailing sugar corporation has, over the years seen a continuous decline in performance in terms of production but has seen billions of dollars from the nation’s coffers being plugged annually into the industry. In its Mid-Year report last year, the Irfaan Ali Government had acknowledged that the sugar industry continues to decline. In the financial report, the Ministry of Finance said that at the end of the first half of 2021, GuySuCo produced 29,650 tonnes of sugar. “This performance reflects the record high levels of rainfall, which resulted in waterlogged soils, particularly at the Albion Estate, and strike action that resulted in over 5,600 man-days being lost,” the Mid-Year Report indicated. As such, it was emphasised that the sugar industry declined by 22.4 percent when compared to the same period in 2020. Some of the reasons indicated were a 30 percent mortality of mature cane at Albion estate, 10 percent at Uitvlugt and five percent at Blairmont due to the floods. Another 15,000 tonnes of sugar in the second crop were also expected to be lost, based on the Report.
Back in 2017 the Coalition Government had unveiled what it termed a ‘State Paper on the Future of the Sugar Industry’, which it then said would focus on the poorly-performing estates and have them shift from sugar to diversification. The plan was to amalgamate Wales Estate with Uitvlugt Estate and reassign its cane to the Uitvlugt factory, since the estate is operating at 50 percent capacity. Sixty percent of its drainage and irrigation infrastructure is in a dilapidated condition. The corporation furthermore seeks to divest itself of the Skeldon Estate. The estates of Albion and Rose Hall were to be amalgamated and the factory at Rose Hall is to be closed.”
The Coalition had said that the industry would then consist of three estates and three sugar factories. The estates would be Blairmont on the West Bank Berbice, Albion-Rose Hall in East Berbice and the Uitvlugt-Wales estate in West Demerara. The three estates will be complete with factories and will have cane supplied from all five locations. By virtue of the amalgamation, the Enmore, East Coast Demerara (ECD) and Rose Hall, Berbice factories were to be closed. The PPP/C had criticised the move and made a central theme of its 2020 elections campaign to reopen all of the shuttered estates.
However, two years after being in office, the government has not been able to reopen any of the estates. In fact, late last year Vice President Bharrat Jagdeo told state media that: “timeline for viability on sugar is linked to how quickly we decouple sugar from other activities, and so going purely after sugar itself it would mean a longer term return to viability. If we can merge sugar with other economic activities on these estates which we are trying to do then we can achieve overall viability faster.” He said the government will be examining several proposals for the sugar industry this year, even as he acknowledged that GuySuCo has not only a financial problem, but a production problem. For last year alone, GuySuCo received over $6 Billion from the national treasury. It received a further $6B in this year’s budget.
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
Apr 19, 2024
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