Minister of Agriculture, Dr. Christopher Tufton (left), and Donovan Stanberry, permanent secretary in the Ministry Agriculture, listen to the speaker at the ministry's sugar cane industry retreat at the Terra Nova Hotel in St. Andrew on Wednesday. - Junior Dowie/Staff Photographer

The eight pre-qualified investors shortlisted for the divestment of the sugar industry have been given until mid-February to make submissions for the six state-owned sugar estates and factories.

This was announced Wednesday by Dr. Christopher Tufton, Minister of Agriculture. He was outlining a timetable for the divestment of the industry at a sugar cane industry retreat at the Terra Nova Hotel in St. Andrew. He said the investment should be completed some time in June.

Selection of the first ranked bidders would take place in early March and negotiations should be completed by late March, the minister said.

The eight bidders are Jamaica's Wray & Nephew and Energen; Trinidad's Angostura; Stirling Partners of the Bahamas; Brazil's Infinity Bio Energy and Coimex; India's Dhamphur; and Flo Sun of the United States.

In underscoring the need for divestment, Dr. Tufton said: "The industry is challenged, simply put, because we do not sufficiently produce to compete with others out there in the world."

High costs

The minister said the most efficient sugar producers in the world can produce sugar between 12 cents and 17 cents per lb, while the local product is costing 26 cents per lb.

"That is not a sustainable position and it is something that we have to all recognise and accept as a starting point to driving the changes that have to take place," he said.

"We are no longer guaranteed a market, so by 2009 we will see prices falling to the tune of 36 per cent."

He said the industry needed capital investments of some US$10 million ($700 million) over the next two to three years to make it sustainable.