GuySuCo now produces sugar three times world market price

GuySuCo now produces sugar three times world market price

Jun 29, 2017 News, http://www.kaieteurnewsonline....-world-market-price/

Sugar prices on the world market for the past six months have dropped significantly to between US$250 -$275 per tonne, further compounding the problems of the state-owned Guyana Sugar Corporation (GuySuCo). The prices translate to about 12.5 cents per pound (c/lb). As of yesterday, the price was 12.66 cents per pound.

The figures would continue to send warning signs, as it was only in January that GuySuCo officials appeared before a Parliamentary committee and disclosed that the cost for which sugar is traded on the world market is an average US$0.19 per pound.

This would contrast starkly with GuySuCo cost per pound of approximately US$0.40 -more than double. It is now thrice of what it is being sold for.

The world market price disclosure by GuySuCo would only serve to underscore the plight facing the industry which is rocked by industrial unrest and protests over plans to close the Rose Hall and Enmore estates in a last-ditch attempt to keep the industry alive.

GuySuCo explained yesterday that it supplies annually about 65,000 tonnes of bagged and packaged sugar to Caribbean and local markets. Another 12,000 tonnes of raw sugar is supplied to the North American market while the remainder, which is also raw sugar, is sold on the European market.

The supply to Europe for the second crop 2017 is expected to be around 70,000 tonnes.

“The current forecast is that there will be a surplus of sugar on the World Market for the marketing year 2017/2018. In addition, from 1st October 2017, the European Union market will also see some radical changes, since it is anticipated that significant additional amounts of beet sugar will be available for sale and this will compete directly with cane sugar.”

This, GuySuCo said, may result in reduced sugar prices in Europe.

“Due to the competition with beet producers, the price paid by the refiners for raw cane sugar (as supplied by GuySuCo) will be more in line with the World Market Price, which currently is trading at US$275 per tonne and the forecast is that it will not increase significantly in the near future . The price at the commencement of the year was US$396 per tonne.”

GuySuCo argued that the anticipated lower prices for the sugar sold will not assist the corporation’s fragile financial position and poor liquidity will continue to pose a serious challenge in the upcoming second crop.

“The Corporation is therefore encouraging its employees, particularly harvesters and planters, to turn out and assist their estates to harvest all canes in the cultivations and maximize on sugar production. Sugar-dependent communities are also urged to support the corporation’s outreach drive to increase attendance on all estates for the second crop which starts mid-July.”

The new administration has been under political and economic pressure over GuySuCo.

An average of almost $10B has to be pumped annually to pay workers and keep the industry alive.

With thousands of workers, options like diversification to rice, estate closures, and a tighter lid on procurement, have not been popular.

Last December, the century-old Wales estate, West Bank Demerara was closed,

GuySuCo told the Parliamentary committee in January that “the employment cost of retaining the workers in this industry exceeds revenue.

In fact, the actual figure is 101 percent, with more spent on employment than received in revenue from selling sugar. These employment costs range between 60-65 percent of the total cost across the estates.

The current workforce of the sugar corporation is approximately 17,000 persons with more than 70,000 family members who would be affected if there is a closure of the industry.

In January, GuySuCo had debts in excess of $75B.

Chief Executive Officer of GuySuCo, Errol Hanoman, noted that under the corporation’s current configuration, reducing “head count means  production will decline significantly. He also explained that in order to maintain high production levels with the workforce intact, substantial financial investments are required.

Poor labour turnout has also contributed to reduced sugar production. The CEO had reported that cane harvesters’ attendance between 2009 and 2014 ranged from 52 per cent in 2011 to 60 percent in 2016.

A Cabinet sub-committee was appointed in 2016 to examine the way forward for the GuySuCo. A white paper has since been laid in the National Assembly.

The Opposition has been galvanising support in the sugar-producing areas, blaming the administration for inaction.

Jackass Granger said he had all the answers to the sugar industry, now we see it getting even worse. But thi is not surprising given that an old army man would know nothing about sugar can production. Jackass now looking to close down the sugar industry and wait for sugar apon advise from lillymohan and others.

cain posted:

DrugB you yourself said sugar is a losing business,so why the nasty attitude?

Bai PNC/AFC made campaign promise to save sugar, it is incumbent on all of us, including you slop can boys, to hold their feet to the fire. They pull a con job on the Guyanese public to get elected, now they fail to deliver across the spectrum. Jailing PPP, stopping corruption, improving the economy, saving sugar and rice. The only accomlishment so far has been filling their pockets with 50% raise and depending on oil money that PPP initiated.

Drugb posted:
cain posted:

DrugB you yourself said sugar is a losing business,so why the nasty attitude?

Bai PNC/AFC made campaign promise to save sugar, it is incumbent on all of us, including you slop can boys, to hold their feet to the fire. They pull a con job on the Guyanese public to get elected, now they fail to deliver across the spectrum. Jailing PPP, stopping corruption, improving the economy, saving sugar and rice. The only accomlishment so far has been filling their pockets with 50% raise and depending on oil money that PPP initiated.

I see you have enjoyed your slop can breakfast. You will receive a fresh can shortly for lunch. Enjoy your shitty day at work with nothing to do.

Drugb posted:

Jackass Granger said he had all the answers to the sugar industry, now we see it getting even worse. But thi is not surprising given that an old army man would know nothing about sugar can production. Jackass now looking to close down the sugar industry and wait for sugar apon advise from lillymohan and others.

Seems to have no clue on issues and governance.

Drugb posted:

Jackass Granger said he had all the answers to the sugar industry, .

Why don't you discuss how Jagdeo landed Guysuco in a mess. Granger isn't a magician and it will take that to rescues Guysuco.

I also don't recall Granger screaming that he had all the answers on sugar.  The man who wailed that is Jagdeo, and its obvious that he LIED!

caribny posted:
Drugb posted:
cain posted:

DrugB you yourself said sugar is a losing business,so why the nasty attitude?

Bai PNC/AFC made campaign promise to save sugar,..

Yes, by shutting down unprofitable estates.

No you have short memory. The jackasses stated that by reducing corruption by getting rid of ppp cronies on the sugar board, the profitability would swing to positive. But instead they now producing sugar at 3 times the cost of world prices.

caribny posted:

Why don't you discuss how Jagdeo landed Guysuco in a mess. Granger isn't a magician and it will take that to rescues Guysuco.

I also don't recall Granger screaming that he had all the answers on sugar.  The man who wailed that is Jagdeo, and its obvious that he LIED!

Jagdeo is no longer president so no need to disuss him, he is obsolete. Jackass granger is now in charge, he is the leader of the nation. Leaders should lead and not make excuses and point the finger backwards. On the campaign trail he should have  been more honest with the people. Initially he stated that he would close down the industry, but due to campaign pressure, he change his tune and promised to save the industry. Now the jackass must pay the price for his lying. 

Druggie clamp yo rass shut. Granger has to do whatever is necessary. During elections everyone makes promises and when faced with reality they have to go back on those promises. Even though we complain Life is a bitch many wind up marryin one.

I'm sure when BJ ran for the Presidency he made many promises and after being elected could not keep them. The banna even promised his wife to be a good husband to her...what happened?

So haul yur ass yeh.

cain posted:

Druggie clamp yo rass shut. Granger has to do whatever is necessary. During elections everyone makes promises and when faced with reality they have to go back on those promises. Even though we complain Life is a bitch many wind up marryin one.

I'm sure when BJ ran for the Presidency he made many promises and after being elected could not keep them. The banna even promised his wife to be a good husband to her...what happened?

So haul yur ass yeh.

In your world deciet and lies are the norm. When you sell your soul to get votes then you must take the criticizm that follows.  i am not sure why you are so intent on defending jackass granger and his pack of thieves.  Of course you and lilly mohan have no skin in the game, to you this is all child play but those in Guyana suffering the reprecussion of jackass Granger's mismanagement of the economy are the ones that feel the pain day in and day out. 

Drugb posted:

Jackass Granger said he had all the answers to the sugar industry, now we see it getting even worse. But thi is not surprising given that an old army man would know nothing about sugar can production. Jackass now looking to close down the sugar industry and wait for sugar apon advise from lillymohan and others.

A statement blurted out, most likely, while he was asleep.

Drugb posted:
 

No you have short memory. The jackasses stated that by reducing corruption by getting rid of ppp cronies on the sugar board, 

And you think that keeping the PPP cronies would have a good thing?

Note to you. Guysuco had prices 3X the world price since your hero Jagdeo was screaming that Skeldon would solve its problems. He wailed and ranted and froth poured out of his manic jaws when TK warned him that this was a bad idea.

I do understand that you want to forget about all of this, though tragically for you this isn't a magic new slate.  The consequences of Jagdeo's ignorant arrogance and the corruption of his cronies is what has Guysuco in this state.

Now you all are welcome to pretend that Guysuco was a highly profitable company, with 400k of production and that all of this ended in June 2015 when APNU/AFC took it over.

The rest of us know that APNU/AFC had to quickly scrounge up cash to allow the PPP supporters to get paid as Guysuco had already threatened to fire all, but the security personnel, if they didn't get a bail out. YOUR PPP cronies!

Drugb posted:
 

Jagdeo is no longer president so no need to disuss him, he is obsolete

So tell the man to shut up and go to Florida to manage his real estate and leave Guyanese alone.  The fact that he is the leader of the opposition, and plans to be the president in 2020 means that he is very relevant and discussion of his role in the collapse of Guysuco is quite appropriate.

cain posted:

 

I'm sure when BJ ran for the Presidency he made many promises and after being elected could not keep them. The banna even promised his wife to be a good husband to her...what happened?

So haul yur ass yeh.

In fact BJ screamed that sugar will expand and Guyana will be the power house of sugar production in the Americas. Rather than beginning to transition sugar workers into other activities, as the EU gave him money to do, he sank even more into Guysuco. We can debate about how much of this poured into the pockets of his PPP cronies.

caribny posted: 

And you think that keeping the PPP cronies would have a good thing?

Note to you. Guysuco had prices 3X the world price since your hero Jagdeo was screaming that Skeldon would solve its problems. He wailed and ranted and froth poured out of his manic jaws when TK warned him that this was a bad idea.

I do understand that you want to forget about all of this, though tragically for you this isn't a magic new slate.  The consequences of Jagdeo's ignorant arrogance and the corruption of his cronies is what has Guysuco in this state.

Now you all are welcome to pretend that Guysuco was a highly profitable company, with 400k of production and that all of this ended in June 2015 when APNU/AFC took it over.

The rest of us know that APNU/AFC had to quickly scrounge up cash to allow the PPP supporters to get paid as Guysuco had already threatened to fire all, but the security personnel, if they didn't get a bail out. YOUR PPP cronies!

Look how a senior pnc operative like you gone to the dogs. When you people were campaigning you said you could save sugar, rice, bauxite, gold, timber etc. But today we see your incompetence exposed as all you can do is blame ppp and make excuses. You con men should have set the expectation of the Guyanese public to the reality of today rather than paint a rosy picture that you couldn't deliver. 

Drugb posted:
.!

Look how a senior pnc operative like you gone to the dogs. When you people were campaigning you said you could save sugar.

And in fact there are those who will say that the best way to save a dying industry is to focus on aspects of its operations which can most easily be turned around.

You are aware that when a failing company is taken over in 100% of the cases there is massive redundancy and shutting down of unprofitable plants.

You sir are engaging in your normal distraction from the reason why these measures were taken in the first place. In 1992 the PPP inherited a Guysuco which had been turned around by Bookers management. Jagdeo tossed them out, put in his cronies, squandered millions of dollars and so by 2014 LESS sugar was being produced than in 1992.

With a plummeting demand for sugar in developed nations and Guyana's inability to compete in global markets with Brazil, Australia and others, just be glad that they keep open a few estates.

 

 

caribny posted:
Drugb posted:
.!

Look how a senior pnc operative like you gone to the dogs. When you people were campaigning you said you could save sugar.

And in fact there are those who will say that the best way to save a dying industry is to focus on aspects of its operations which can most easily be turned around.

You are aware that when a failing company is taken over in 100% of the cases there is massive redundancy and shutting down of unprofitable plants.

You sir are engaging in your normal distraction from the reason why these measures were taken in the first place. In 1992 the PPP inherited a Guysuco which had been turned around by Bookers management. Jagdeo tossed them out, put in his cronies, squandered millions of dollars and so by 2014 LESS sugar was being produced than in 1992.

With a plummeting demand for sugar in developed nations and Guyana's inability to compete in global markets with Brazil, Australia and others, just be glad that they keep open a few estates.

 

 

You are the one detracting. Your pnc boys said they had the answers but now we know that they were lying to get votes.

Derelick Rugbeer, you are ignoring the fact as CaribNY stated so eloquently: Jagdeo tossed them out, put in his cronies, squandered millions of dollars and so by 2014 LESS sugar was being produced than in 1992.

Jagdeo / PPPc intended to close the estates anyway.

Drugb posted:
 

You are the one detracting. Your pnc boys said they had the answers but now we know that they were lying to get votes.

Yes the answers that the PNC boys had was to shut down unprofitable estates and that is exactly what they are doing.

Now go and tell us why Jagdeo didn't keep Guymine.  He didn't and 80% of the bauxite workers lost their jobs as the new owners streamlined operations to reduce costs. Well the same fate will now await sugar workers as costs have to be reduced to increase the probability that the entire industry doesn't face total collapse.

Guyana couldn't afford to subsidize Guymine indefinitely and it cannot afford to subsidize Guysuco indefinitely.  Now go and tell sugar workers to take computer classes and found something else to so. That is what the PPP told people in Linden and Kwakwani.

Mitwah posted:

Derelick Rugbeer, you are ignoring the fact as CaribNY stated so eloquently: Jagdeo tossed them out, put in his cronies, squandered millions of dollars and so by 2014 LESS sugar was being produced than in 1992.

Jagdeo / PPPc intended to close the estates anyway.

Druggie has his brains damaged by all the Jagdeo slop he sniffs all day. That is his new drug of choice.

LONG ago the PPP announced that they planned to shut down the estates in Demerara, and refocus sugar based on the Skeldon plant.  They said that the yields in Demerara were too poor and the prospects of improving the performance of these estates was too remote.  In fact Berbice has the more optimal soils and rainfall for sugar, at least this is what the PPP claimed.

In fact the PPP shut down estates on the East Demerara.  But drug addled Druggie, sniffing Jagdeo's slop all day, is too brain damaged to admit to this.  Had the PPP won n 2015 they would have moved forward to close down Wales and to assign those lands to the same PPP crony real estate speculators that they did on the East Bank.

caribny posted:
.
 

Druggie has his brains damaged by all the Jagdeo slop he sniffs all day. That is his new drug of choice.

LONG ago the PPP announced that they planned to shut down the estates in Demerara, and refocus sugar based on the Skeldon plant.  They said that the yields in Demerara were too poor and the prospects of improving the performance of these estates was too remote.  In fact Berbice has the more optimal soils and rainfall for sugar, at least this is what the PPP claimed.

In fact the PPP shut down estates on the East Demerara.  But drug addled Druggie, sniffing Jagdeo's slop all day, is too brain damaged to admit to this.  Had the PPP won n 2015 they would have moved forward to close down Wales and to assign those lands to the same PPP crony real estate speculators that they did on the East Bank.

I am not here to defend Jagdeo's actions 6 years ago, the PNC in power now, they are on the hot seat. Stop making excuses for them. They said they would save sugar and they failed. Jagdeo never said he would save bauxite but the industry still survives today.

caribny posted:
Drugb posted:
 

You are the one detracting. Your pnc boys said they had the answers but now we know that they were lying to get votes.

Yes the answers that the PNC boys had was to shut down unprofitable estates and that is exactly what they are doing.

Now go and tell us why Jagdeo didn't keep Guymine.  He didn't and 80% of the bauxite workers lost their jobs as the new owners streamlined operations to reduce costs. Well the same fate will now await sugar workers as costs have to be reduced to increase the probability that the entire industry doesn't face total collapse.

Guyana couldn't afford to subsidize Guymine indefinitely and it cannot afford to subsidize Guysuco indefinitely.  Now go and tell sugar workers to take computer classes and found something else to so. That is what the PPP told people in Linden and Kwakwani.

You are a serious joker.  No estate in Guyana is profitable so they would have to close all. The jackasses said they had the answers. Once they stop ppp thieving sugar would be saved. I suppose the ppp must still be thieving as sugar is still failing.

Drugb posted:
.

You are a serious joker.  No estate in Guyana is profitable so they would have to close all. The jackasses said they had the answers. 

Yes they did have the answer.  SHUT IT DOWN! 

But its the prospects off all of those crying Indians, yes the same ones who screamed that they are so hardworking that they didn't care what the PNC did.  So they will keep a few open. Seeing grown men wailing "me gun dead, black man a kill ahbe" does lead to some pity.

caribny posted:
Drugb posted:
.

You are a serious joker.  No estate in Guyana is profitable so they would have to close all. The jackasses said they had the answers. 

Yes they did have the answer.  SHUT IT DOWN! 

But its the prospects off all of those crying Indians, yes the same ones who screamed that they are so hardworking that they didn't care what the PNC did.  So they will keep a few open. Seeing grown men wailing "me gun dead, black man a kill ahbe" does lead to some pity.

Lies, this is not what they promised during the campaign. 

Drugb posted:
caribny posted:
Drugb posted:
.

You are a serious joker.  No estate in Guyana is profitable so they would have to close all. The jackasses said they had the answers. 

Yes they did have the answer.  SHUT IT DOWN! 

But its the prospects off all of those crying Indians, yes the same ones who screamed that they are so hardworking that they didn't care what the PNC did.  So they will keep a few open. Seeing grown men wailing "me gun dead, black man a kill ahbe" does lead to some pity.

Lies, this is not what they promised during the campaign. 

Provide proof of what they promised during the campaign. Your head is full of shitttt.

Drugb posted:
 

Lies, this is not what they promised during the campaign. 

They said that they would establish a commission to determine a way forward for sugar. Well they did and the decision is to close factories. But why the shock because the PPP already begun to close factories.

caribny posted:
Drugb posted:
 

Lies, this is not what they promised during the campaign. 

They said that they would establish a commission to determine a way forward for sugar. Well they did and the decision is to close factories. But why the shock because the PPP already begun to close factories.

More lies. They said they would save sugar. Now you back peddling with fabrication of commission, another term for free money to pay pnc slackers

Drugb posted:
caribny posted:
Drugb posted:

You are a serious joker.  No estate in Guyana is profitable so they would have to close all. The jackasses said they had the answers. 

Yes they did have the answer.  SHUT IT DOWN! 

But its the prospects off all of those crying Indians, yes the same ones who screamed that they are so hardworking that they didn't care what the PNC did.  So they will keep a few open. Seeing grown men wailing "me gun dead, black man a kill ahbe" does lead to some pity.

Lies, this is not what they promised during the campaign. 

You are correct, DrugB.

Drugb posted:
 

More lies. They said they would save sugar. 

In fact to save sugar the most unprofitable estates were going to have to be closed. Did APNU tell anyone that they didn't plan to close estates?

The PPP was going to do so but I bet that Jagdeo didn't mention that, even as he had already begun to do so.

Demerara_Guy posted:
. 

You are correct, DrugB.

And did Jagdeo tell you all that be was not going to shut down estates?  The mere fact that Wales is in such dire shape suggests that they were going to shut it down as soon as it was politically expedient.

I suggest that you PPP frauds stop fooling poor cane cutters.  The reality is if they want to continue to cut cane their future is in Brazil.

kp posted:

me gun dead, black man a kill ahbe" me gun

 

dead, black man a kill ahbe" 

me gun dead, black man a kill ahbe" 

THIS IS CARIBJ MANTRA, AND ITS SO TRUE.

No that is the daily screams of people like you. I just being clarity to your remarks by summing it up.

Mitwah posted:
Drugb posted:
caribny posted:
Drugb posted:
.

You are a serious joker.  No estate in Guyana is profitable so they would have to close all. The jackasses said they had the answers. 

Yes they did have the answer.  SHUT IT DOWN! 

But its the prospects off all of those crying Indians, yes the same ones who screamed that they are so hardworking that they didn't care what the PNC did.  So they will keep a few open. Seeing grown men wailing "me gun dead, black man a kill ahbe" does lead to some pity.

Lies, this is not what they promised during the campaign. 

Provide proof of what they promised during the campaign. Your head is full of shitttt.

Your behavior makes one to believe that you are promised a barrel of OIL for your advisor wok. Try and read what you write before you post, and you want to do people books, what a shame.

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