GuySuCo CoI: Main buyer calls for reduced production costs

GuySuCo CoI: Main buyer calls for reduced production costs

July 31, 2015 4:12 pm Category: latest news A+ / A-

 

The meeting between the Commissioners and Tate and Lyle principals.

The meeting between the Commissioners and Tate and Lyle principals.

 

[www.inewsguyana.com]

 

The Guyana Sugar Company (GuySuCo) Commission of Inquiry (COI) recently met with Tate and Lyle Sugars – one of the main buyers of GuySuCo’s sugar –  in an effort to gather information on the future of the sector as the commission continues to meet with key stakeholders to forge the way ahead for the sugar industry.

The commission met with several principals of the company including, Vice President Duncan Tate, Allan Wood and Mac McLachlan.

According to a press statement, Tate and Lyle officials reflected on their long productive association with Guyana and stated their continued interest in buying Guyana sugar.

However, recent developments in Europe have made the sugar market very volatile and that the primary consideration is market price.

With the removal of preferential prices which ACP countries like Guyana enjoyed, the developing situation dictates that producers have to be more efficient and that demands disciplined management.

They noted that the price situation will become even more complex for Guyana when the cap on beet sugar production is deregulated.”

“They advised that the EU will be dominated by beet and cane sugar will have to compete with beet. Even in countries that are major producers of cane sugar, some factories have been closing…they emphasized that the cost of production must be brought down to be competitive. Tate and Lyle officials indicated their willingness to provide technical advice to GuySuCo,” the release stated.

 

 

Original Post

Quote 'They noted that the price situation will become even more complex for Guyana when the cap on beet sugar production is deregulated.

They advised that the EU will be dominated by beet and cane sugar will have to compete with beet. Even in countries that are major producers of cane sugar, some factories have been closing…they emphasized that the cost of production must be brought down to be competitive. 'unquote

Originally Posted by asj:

Quote 'They noted that the price situation will become even more complex for Guyana when the cap on beet sugar production is deregulated.

They advised that the EU will be dominated by beet and cane sugar will have to compete with beet. Even in countries that are major producers of cane sugar, some factories have been closing…they emphasized that the cost of production must be brought down to be competitive. 'unquote

I heard that beet would displace sugar 30 years ago.

I'm sure Tate and Lyle have the best practice to benchmark Guyana's COGP.  That would be the good starting point to fact-base Guyana's industry and come up with measures to match-up.  It will required investment and even structural changed how the industry operates.  I think it will be a challenge.

Lets face it, we had Tate and Lyle before, and they were deemed unfit, so why now? what can they do to stop the hemorrhaging of the Sugar Industry. 

 

Next Year we will need to spend more billions, and then some more again, where do we stop.

Originally Posted by asj:

Lets face it, we had Tate and Lyle before, and they were deemed unfit, so why now? what can they do to stop the hemorrhaging of the Sugar Industry. 

 

Next Year we will need to spend more billions, and then some more again, where do we stop.

Maybe, just maybe, there is go real good solution.  If not Tate and Lyle, then seek advise from other large sugar producers, how about Cuba.

Originally Posted by VVP:
 

I heard that beet would displace sugar 30 years ago.

If beet sugar is cheaper than cane sugar, or at least Guyanese cane sugar, then it will take over.  The days when Europeans will buy expensive ACP sugar is over. 

 

As of now only Guyana, and Belize see any future in sugar.  The only other ACP exporter is Barbados, which keeps its industry alive only for social purposes.  All the other Caribbean ACP producers have either shut down their industry, or produce for the domestic market only.

Originally Posted by caribny:
Originally Posted by baseman:
, how about Cuba.

Cuba is another high cost producer with an industry on the brink of collapse.

I don't know the facts, but my point, benchmark the best in class and go from there.  If not Cuba, they who ever, India, Brazil, Indonesia, USA who ever.

Originally Posted by baseman:
Originally Posted by caribny:
Originally Posted by baseman:
, how about Cuba.

Cuba is another high cost producer with an industry on the brink of collapse.

I don't know the facts, but my point, benchmark the best in class and go from there.  If not Cuba, they who ever, India, Brazil, Indonesia, USA who ever.

De-centralize the industry. It was a mistake to put everthing and everyone together. Smaller entities are better managed.

Originally Posted by seignet:
Originally Posted by baseman:
Originally Posted by caribny:
Originally Posted by baseman:
, how about Cuba.

Cuba is another high cost producer with an industry on the brink of collapse.

I don't know the facts, but my point, benchmark the best in class and go from there.  If not Cuba, they who ever, India, Brazil, Indonesia, USA who ever.

De-centralize the industry. It was a mistake to put everthing and everyone together. Smaller entities are better managed.

Not sure.  Agro is one which leverage scale to become efficient.  Not being able to manage a company that size is sheer incompetence, not too big to fail of manageable.  That entire industry in smaller that a single mid-level division of many companies.  It is sheer incompetence and politicize decision-making.

Originally Posted by seignet:
Originally Posted by baseman:
Originally Posted by caribny:
Originally Posted by baseman:
, how about Cuba.

Cuba is another high cost producer with an industry on the brink of collapse.

I don't know the facts, but my point, benchmark the best in class and go from there.  If not Cuba, they who ever, India, Brazil, Indonesia, USA who ever.

De-centralize the industry. It was a mistake to put everthing and everyone together. Smaller entities are better managed.

for sugar cane cultivation . . .?

 

are u high?

Originally Posted by asj:

Given that calamities that Guysuco is going through, I think that it will not be a bad idea divvy it up into smaller entitles, or if possible have these entities concentrates, sugar for local consumptions and sugar for export.

what does that even mean?

 

GUYSUCO is already a conglomeration of distinct sugar estates

Originally Posted by redux:
Originally Posted by asj:

Given that calamities that Guysuco is going through, I think that it will not be a bad idea divvy it up into smaller entitles, or if possible have these entities concentrates, sugar for local consumptions and sugar for export.

what does that even mean?

 

GUYSUCO is already a conglomeration of distinct sugar estates

Means that Guysuco will be relieved of begging for funds every now and again.

 

Private capital and labor will show how to do it.

Originally Posted by asj:
Originally Posted by redux:
Originally Posted by asj:

Given that calamities that Guysuco is going through, I think that it will not be a bad idea divvy it up into smaller entitles, or if possible have these entities concentrates, sugar for local consumptions and sugar for export.

what does that even mean?

 

GUYSUCO is already a conglomeration of distinct sugar estates

Means that Guysuco will be relieved of begging for funds every now and again.

 

Private capital and labor will show how to do it.

please be specific about what u are proposing . . . u are confusing and unclear

 

thanks

Originally Posted by asj:
 

Private capital and labor will show how to do it.

Then your next scream will be "PNC sends Indians to the breadline," just like what the Chinese did to Lindeners. Private owners will shut down some estates, lay off workers, and increase mechanization, with additional job loss.  There will be no "social mission" of employing unneeded workers.

Originally Posted by caribny:

This is not sustainable.  If Guysuco continues to lose money, how will the ministers be able to get an additional salary increase next year, on top of what was being proposed, before the PPP spy leaked the story to GTimes?

The AFC members were supposed to have all the answers.  They are the ones who will be blamed by the PNC.

Originally Posted by asj:
Originally Posted by redux:
Originally Posted by asj:

Given that calamities that Guysuco is going through, I think that it will not be a bad idea divvy it up into smaller entitles, or if possible have these entities concentrates, sugar for local consumptions and sugar for export.

what does that even mean?

 

GUYSUCO is already a conglomeration of distinct sugar estates

Means that Guysuco will be relieved of begging for funds every now and again.

 

Private capital and labor will show how to do it.

APNU+AFC heading to privatize sugar industry – says Rohee

August 4, 2015 6:06 am Category: latest news A+ / A-

By Jomo Paul

Sugar[www.inewsguyana.com] – With a Commission of Inquiry undergoing into the Guyana Sugar Company (GuySuCo), the People’s Progressive Party (PPP) does not believe that the sugar company has a future as a State entity under the new APNU+AFC administration.

General Secretary of the PPP, Clement Rohee at a press conference on Monday August 03 alluded to statements purportedly made by the recently appointed GuySuCo Chairman, Dr Clive Thomas.

According to Rohee, the GuySuCo Chairman is quoted as saying “the sugar industry like the rice industry has to be privatized in order for it to function better because it was wrong of the previous administration not to do so.”

Rohee referenced this statement by Thomas and the fact that the principals of one of GuySuCo’s main buyers – Tate & Lyle – recently testified at the on-going commission.

“Steps have already been taken in this direction with the presence in Guyana of Tate and Lyle representatives, the management of Guysuco was once privatized and placed in the hands of Tate and Lyle,” said Rohee.

However, it should be noted that the principals of the company including, Vice President Duncan Tate, Allan Wood and Mac McLachlan recently stated that GuySuCo should look at lowering production costs.

Tate and Lyle officials reflected on their long productive association with Guyana and stated their continued interest in buying Guyana’s sugar.

However, recent developments in Europe have made the sugar market very volatile and that the primary consideration is market price. With the removal of preferential prices which ACP countries like Guyana enjoyed, the developing situation dictates that producers have to be more efficient and that demands disciplined management.

They noted that the price situation will become even more complex for Guyana when the cap on beet sugar production is deregulated.”

 

This could be better for Guysuco, in the long run.

The workers are getting lower than minimum wages and the rice is being sold for less than market value.  The Main buyer must be insane to think that Moses will allow such a move. 

 

Guyana should produce rice and sugar for local consumption only.  They should venture into wheat and manufacture of local of our local products into such commodities that we need.  canning of fish is a good venture. 

The PNC should now implement Corbin's dairy farming plans.

Put the dirty Indians to work.

Originally Posted by Ramakant-P:

The workers are getting lower than minimum wages and the rice is being sold for less than market value.  The Main buyer must be insane to think that Moses will allow such a move. 

 

Guyana should produce rice and sugar for local consumption only.  They should venture into wheat and manufacture of local of our local products into such commodities that we need.  canning of fish is a good venture. 

The PNC should now implement Corbin's dairy farming plans.

Put the dirty Indians to work.

I can always count on you for a good laugh .

So, TK do you see privatizing the Sugar Industry as going in the right direction or not a good move?: Noting that if they (the govt) do not do this, years after years they will have to input billions of the dollars in this industry. 

Originally Posted by asj:

So, TK do you see privatizing the Sugar Industry as going in the right direction or not a good move?: Noting that if they (the govt) do not do this, years after years they will have to input billions of the dollars in this industry. 

I wrote about six columns in SN outlining how I would do it. But there is no easy way out.

Originally Posted by TK:
Originally Posted by asj:

So, TK do you see privatizing the Sugar Industry as going in the right direction or not a good move?: Noting that if they (the govt) do not do this, years after years they will have to input billions of the dollars in this industry. 

I wrote about six columns in SN outlining how I would do it. But there is no easy way out.

Did not read those articles, but since our production cost is almost double our selling price, then it would take a miracle to get out of this dilemma.

 

If private enterprises can cut drastically the Production cost, then we may be able to break even. I do not even see that happening.

Originally Posted by Billy Ram Balgobin:

I don't know why Granger did not consider TK for the job of finance minister. TK is capable of doing a better job than Winston Jordan.

 

These are not problems the MOF can really solve. He/She is a national bookkeeper. You need leaders who can ask the right questions.

Originally Posted by TK:
Originally Posted by Ramakant-P:

The workers are getting lower than minimum wages and the rice is being sold for less than market value.  The Main buyer must be insane to think that Moses will allow such a move. 

 

Guyana should produce rice and sugar for local consumption only.  They should venture into wheat and manufacture of local of our local products into such commodities that we need.  canning of fish is a good venture. 

The PNC should now implement Corbin's dairy farming plans.

Put the dirty Indians to work.

I can always count on you for a good laugh .

Do you think that you can do better?

Originally Posted by TK:
Originally Posted by Billy Ram Balgobin:

I don't know why Granger did not consider TK for the job of finance minister. TK is capable of doing a better job than Winston Jordan.

 

These are not problems the MOF can really solve. He/She is a national bookkeeper. You need leaders who can ask the right questions.

You need leaders who can implement their campaign  promises.

Originally Posted by TK:
Originally Posted by Billy Ram Balgobin:

I don't know why Granger did not consider TK for the job of finance minister. TK is capable of doing a better job than Winston Jordan.

 

These are not problems the MOF can really solve. He/She is a national bookkeeper. You need leaders who can ask the right questions.

TK do you believe Granger is a good leader with the ability to ask the right questions?  I am not sure of his "managerial" abilities...he seems to be led.

 

BTW who is the He/She above?

Originally Posted by VVP:
Originally Posted by TK:
Originally Posted by Billy Ram Balgobin:

I don't know why Granger did not consider TK for the job of finance minister. TK is capable of doing a better job than Winston Jordan.

 

These are not problems the MOF can really solve. He/She is a national bookkeeper. You need leaders who can ask the right questions.

TK do you believe Granger is a good leader with the ability to ask the right questions?  I am not sure of his "managerial" abilities...he seems to be led.

 

BTW who is the He/She above?

He has come across bit weak, but he walking a tight rope with the old PNC racists dead-enders.  He may need to rely on the PNC/GDF alliance to hang on in 2020 if Nagamootoo walks so he don't want to upset them too much.

Originally Posted by baseman:
.if Nagamootoo walks so he don't want to upset them too much.

Nagamootoo isn't going any where.  That $US 100k, which he will get as soon as they can get bodderation, jealous Guyanese to agree, is too sweet.  The PPP don't need him, so he will not get that from them. 

 

By 2020 either the APNU/AFC succeed (in which case they will win again), or they will fail, in which case Nagamootoo and the AFC as a whole will be tarnished.

 

So he will sit right where he is.  Nigel Hughes might be a bigger problem for Granger.

Originally Posted by caribny:
Originally Posted by baseman:
.if Nagamootoo walks so he don't want to upset them too much.

Nagamootoo isn't going any where.  That $US 100k, which he will get as soon as they can get bodderation, jealous Guyanese to agree, is too sweet.  The PPP don't need him, so he will not get that from them. 

 

By 2020 either the APNU/AFC succeed (in which case they will win again), or they will fail, in which case Nagamootoo and the AFC as a whole will be tarnished.

 

So he will sit right where he is.  Nigel Hughes might be a bigger problem for Granger.

And replaced by the GDF alliance?

Originally Posted by VVP:
Originally Posted by TK:
Originally Posted by Billy Ram Balgobin:

I don't know why Granger did not consider TK for the job of finance minister. TK is capable of doing a better job than Winston Jordan.

 

These are not problems the MOF can really solve. He/She is a national bookkeeper. You need leaders who can ask the right questions.

TK do you believe Granger is a good leader with the ability to ask the right questions?  I am not sure of his "managerial" abilities...he seems to be led.

 

BTW who is the He/She above?

Come in TK.

Originally Posted by caribny:
Originally Posted by baseman:
.if Nagamootoo walks so he don't want to upset them too much.

Nagamootoo isn't going any where.  That $US 100k, which he will get as soon as they can get bodderation, jealous Guyanese to agree, is too sweet.  The PPP don't need him, so he will not get that from them. 

 

By 2020 either the APNU/AFC succeed (in which case they will win again), or they will fail, in which case Nagamootoo and the AFC as a whole will be tarnished.

 

So he will sit right where he is.  Nigel Hughes might be a bigger problem for Granger.

If things continue like this and AFC remains weak in this government then AFC will lose its whole base in 2020.  Does that mean PPP again??  Lawd hav murcey!!!

Originally Posted by VVP:
Originally Posted by caribny:
Originally Posted by baseman:
.if Nagamootoo walks so he don't want to upset them too much.

Nagamootoo isn't going any where.  That $US 100k, which he will get as soon as they can get bodderation, jealous Guyanese to agree, is too sweet.  The PPP don't need him, so he will not get that from them. 

 

By 2020 either the APNU/AFC succeed (in which case they will win again), or they will fail, in which case Nagamootoo and the AFC as a whole will be tarnished.

 

So he will sit right where he is.  Nigel Hughes might be a bigger problem for Granger.

If things continue like this and AFC remains weak in this government then AFC will lose its whole base in 2020.  Does that mean PPP again??  Lawd hav murcey!!!

Start getting accustomed to it.

Originally Posted by baseman:
Originally Posted by VVP:
Originally Posted by caribny:
Originally Posted by baseman:
.if Nagamootoo walks so he don't want to upset them too much.

Nagamootoo isn't going any where.  That $US 100k, which he will get as soon as they can get bodderation, jealous Guyanese to agree, is too sweet.  The PPP don't need him, so he will not get that from them. 

 

By 2020 either the APNU/AFC succeed (in which case they will win again), or they will fail, in which case Nagamootoo and the AFC as a whole will be tarnished.

 

So he will sit right where he is.  Nigel Hughes might be a bigger problem for Granger.

If things continue like this and AFC remains weak in this government then AFC will lose its whole base in 2020.  Does that mean PPP again??  Lawd hav murcey!!!

Start getting accustomed to it.

Baseman, yuh wan jine me party?  You, carib and cobra can fite fuh PM spat.

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