Ross Sheil, Staff Reporter
Prime Minister P.J. Patterson addressing Parliament yesterday on the restructuring of the sugar industry. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
SECTOR LEADERS yesterday predicted doom and gloom for Jamaica's sugar industry, following Prime Minister P.J. Patterson's announcement that the country would focus on raw sugar production.
Karl James, general manager of Jamaica Cane Products Sales Ltd., said he would ask Government to reconsider its plans since the target of 200,000 tonnes of raw sugar per year did not challenge the industry. He added that the decision would not keep the industry in step with other countries.
"I am disappointed. I was hoping that the Prime Minister would have challenged the industry more. I would have hoped he would have set a time frame by which we can produce sugar at a competitive price," said Mr. James.
FURTHER DISAPPOINTMENT
He is further disappointed by the lack of mention of electricity co-generation which, arguably, could reduce production costs and produce surplus to be sold to the Jamaica Public Service Company (JPS). "Value-added production is essential. Refining is why America still has a sugar industry," he said.
President of the All-Island Cane Farmers, Allan Rickards, said farmers had been considered "least and last", and faced an uncertain future, with the
closure of two factories and the 200,000-tonne production target.
"In the case of Trelawny and the farmers that are attendant on Bernard Lodge, I wonder whether the Prime Minister thinks that any farmer can go forward into the future, however short," he said. "Which farmer is going to be putting fertiliser on fields uncertain as to how long he can reap those fields?"
The decision to withdraw from refining, he suggested, would hand over Jamaica's share of that market to neighbouring competitor Guyana.
"I wonder whether the Prime Minister, in considering the interests that seem to be so present in his statement, realises that what he has really done is closed a major part of this industry in this country," charged the cane farmer body boss.
Minister of Agriculture, Roger Clarke, said Mr. Patterson will lead a Government team on a final round of consultation with stakeholders, including factories, estates, cane farmers, sugar workers, technologists and other interest groups.
Rationalisation plan
The industry will be centred around three products: raw sugar for the export and domestic markets; molasses for rum manufacture; and ethanol as a substitute for the chemical MTBE in gasolene, for the local transportation sector.
To produce 200,000 tonnes per annum of raw sugar per annum: 126,000 tonnes for the EU market; 12,000 tonnes for the U.S.; and 62,000 tonnes for local consumption.
Closure of the Long Pond and Bernard Lodge sugar factories.
Increased production of molasses for rum production.
Seventy million litres of ethanol.
Sugar Company of Jamaica to enter into business ventures with private investors to achieve the targeted production levels of sugar, molasses and ethanol.
Development of agricultural alternatives to put into production on lands taken out of sugar.
Imposition of managed import regime for refined sugar to prevent access into retail trade and protect the domestic market.
