LIVINGSTON MORRISON, chief executive officer of the Sugar Company of Jamaica (SCJ), is describing as "realistic", projections that 2002/03 is the last year of losses for the company.
He said that there are "critical assumptions" which influenced the SCJ's projections, among them a major replanting programme, which started last year with the cultivation of some 2,500 hectares of cane.
"Our intention is to accelerate the replanting programme over a two to three-year period," he said while noting that during the current planting period the company would be planting a further 4,500 hectares. He said as supply of cane was increased, some of the losses would be "wiped" away.
The Jamaica Public Sector Entities Estimates of Revenue and Expenditure for the year ending March 2004 indicates that the SCJ has forecast a loss of $547.95 million for this year, which will bring the accumulated deficit to $6,242.68 million.
STRATEGY FOR ACHIEVEMENT
The document stated that in the SCJ's five-year projection, it is estimated that profits will be realised from 2003/04 onwards. It said the strategy for achieving this target is through increased revenue from the production of cane and sugar and cost containment through efficiency improvements.
The Public Sector Entities Estimates of Revenue and Expenditure notes that capital expenditure has been forecast at US$4.85 million for the year of which 77 per cent will be spent on fields and 33 per cent on factory operation. This, it said, "will be financed largely by borrowing."
The SCJ head said he was convinced that the overall cost of operation could be reduced by nearly 25 per cent through the tightening of internal controls, where employees will have to account for among other things agricultural inputs such as fertilisers and where persons would be held responsible to meet their performance targets.
The process begun on May 1, with employees being mandated to align themselves with prescribed performance targets and, according to Mr. Morrison, failure to meet these targets could result in "tough action" being taken.
"We are not going to resile from taking tough action where it is necessary but there is a process which will be adopted," he warned.
