GEORGETOWN, Guyana (GINA, January 30, 2009) - Chief Executive Officer (CEO) of Guyana Sugar Corporation (GuySuCo) Nick Jackson today stated that the decision to import sugar to supply the local market is the most feasible and economical arrangement given the fact that the Corporation has contractual obligations that require it to supply its full quota to the European and Caribbean markets.
        
He said the company has never reneged on a contract with any of its markets.

Since the company does not want to disrupt its local market the decision was made to import sugar from the international markets to maintain the Guyana market. This arrangement is also costing the company less than it costs to provide the locally manufactured sugar. No increase in price on the local market is anticipated.

The CEO further added that the company will constantly review this situation in relation to weather patterns, crop progress and demand to decide whether it will continue to import sugar or resort to the locally produced sugar.
          
The GuySuCo CEO, during the programme ‘In Depth’ on the National Communications Network (NCN), explained that unpredictable weather patterns have impacted on the industry since 2005 and it would take some time to recover from this because since then Guyana has experienced increasing rainfall each year with 2008 being the worst with three meters of rainfall. This, he said, severely affected development of lands at Skeldon and the production of cane for the new factory.
           
According to Jackson, both Berbice and Demerara estates were flooded between December 2008 and January 2009 and the fields were under water for 28 days. In Victoria and Albion all the fields were flooded and this caused the young cane plants to die since these could not survive for one month under water. He said this impacted significantly on the industry since the crop was affected and the company now has to look at replanting.
           
Jackson stated that “the impact on the industry is difficult to estimate and to forecast given the weather patterns that were experienced.”  He added that, “the industry is very much dependent on natural weather so if the sun were to come out there would be a great crop and if there is rainfall like last year there would be serious trouble with the crop.”
           
The industry is now examining methods to recover and is currently considering replanting an early maturing variety which will allow harvesting a few weeks before the plant matures. The company is also filling the gaps which are in the fields, planting the entire field and reapplying fertilizer which was leeched out by the rain.
           
GuySuCo is also working with the private farmers to increase cane cultivation because the industry depends heavily on private farmers. Meanwhile the industry is carrying out a full audit of its drainage structures in light of the severe rainy weather that is being experienced.
           
This, the company hopes will enable it to recoup what it has lost to the flood and to achieve its production target of 290,000 tonnes.
           
In explaining the shortfall in production in 2008, Jackson said that the industry was plagued by heavy rainfall during 2008 until September. This caused the heavy clay soil mostly in Berbice to become waterlogged and the root system became contracted and the cane ceased to grow. This resulted in the loss of a significant amount of cane as the water did not drain from the cane roots and beds.
           
However, during the period September to November the weather was sunny and the land became dry and the roots were restored to normal size so the company did not lose too many plants. This has enabled the company to now have a good prediction of the second crop, Jackson said.
           
Through a collaborative effort between GuySuCo and the Ministry of Agriculture along with private farmers, the company aims to speed up its planting to the required amount.
           
Inspite of Guyana having to import sugar, no shortage in supply is expected as Guyana’s sugar Demerara Gold is still being supplied to the local market.