August 17th 2010

Skeldon factory workers urged to return to work, so management could engage their union to address their concerns.

On August 7th 2010 a fire in the Skeldon Factory resulted in extensive damage to the bagasse conveyor belt.

This incident occurred on the said day the Skeldon Estate was slated to commence production for its 2nd crop of 2010.

Based on the extent of the damage it is clear that the blaze started much earlier than the time it was first reported, which was 3hrs of the said day.

A full investigation was conducted which revealed that the incident resulted because of gross negligence, caused extensive damage where remedial work will cost millions of dollars, coupled with the loss of three days production.

As a result disciplinary action was taken against employees, both managerial and non-managerial:

• Two senior employees were interdicted from duty.

• Two senior employees disciplined, one was dismissed and the other suspended.

• Two non-managerial employees were suspended and three non-managerial employees were dismissed.

Following this action, on Tuesday August 17th 2010 factory workers decided to engage in strike against the decision to dismiss their colleagues.

The strike action by the factory workers is at a most inopportune time, when there is a very large crop (480,000 tonnes of canes) to be harvested which has already been affected by poor weather and a 2nd crop production target of 34,000 tonnes of sugar for the Skeldon factory.

Management respects the procedure of engaging workers in keeping with the established principles of the grievance procedure and as such management is willing to do same, providing that there is a resumption of work.

It must be noted that at this point in time, over 650 punts of cane are in a state of readiness for crushing which will yield approximately 4,000 tonnes of sugar.

The Corporation once again reaffirms its call for workers to ensure they seek to solve their concerns through dialogue with officials before resorting to strike action, so as to ensure that critical opportunity days for harvesting and production are not lost, more so because of the current weather pattern and the significant amount of canes to be harvested across the Industry.

August 13th 2010

Re: Cane harvesters call off strike at the LBI Estate after meeting with GuySuCo officials

A group of cane harvesters working at the LBI Estate today called off their strike action following a meeting with senior officials of the Guyana Sugar Corporation Inc.

The workers commenced their strike action yesterday August 12th 2010, voicing their dissatisfaction at several aspects of their working conditions and the rate of pay for clearing obstacles (shrubs) in the fields during harvesting.

A delegation led by Chief Executive Officer Mr. Paul Bhim this morning met with several representatives of the workers and their union (the Guyana Agricultural and General Workers Union) in the harvesting area of contention.

Other representatives of the delegation included: Deputy Chief Executive Officer, Mr. Rajaindra Singh; Acting Head of Industrial Relations, Mr. Francis Carryl; Board of Director Member, Mr. J.B. Raghurai; General Manager of Agriculture Services, Mr. Raymond Sangster and Estate Manager of LBI, Mr. Kissoon Singh.

After a healthy discussion the workers agreed to resume work tomorrow, August 14th 2010 satisfied that their concerns were adequately addressed by the GuySuCo officials.

The workers were urged to ensure that they always seek to solve their concerns through dialogue with officials, before resorting to strike action; so as to ensure that opportunity days for harvesting are not lost, more so because of the current weather pattern to which the workers agreed.

Mr. Bhim assured the workers that his office is always open to address their concerns.

Speaking on behalf of the workers, Mr. Lucien Pierre expressed his appreciation for the timely intervention of the senior GuySuCo officials to address the workers concerns.

Workers representative Mr. Lucien Pierre interacts with CEO Mr. Paul Bhim

General Manager of Agriculture Services Mr. Raymond Sangster interact with workers.

Board of Director Member Mr. J.B. Raghurai and CEO Mr. Paul Bhim listen attentively to a point made by a worker.

See below for related photos:

July 29th, 2010

Re: GuySuCo assures that there is an adequate supply of sugar on the local market

The Guyana Sugar Corporation Inc. would like to put to rest speculation of a shortage of sugar on the local market.

GuySuCo is confident that there is a sufficient supply of sugar to meet the local demand currently.

Grinding for the second crop in 2010 is scheduled to commence this weekend, which will further serve to maintain a stable supply for local consumption.

July 22, 2010

Re: Minister of Agriculture and GuySuCo Officials meet representatives of Tate & Lyle

Officials of Tate and Lyle today concluded a visit to Guyana during which they met with officials of the Guyana Sugar Corporation Inc. and its shareholder the Government to brief them on the recent acquisition of Tate and Lyle by American Sugar Refining Inc.

Tate and Lyle is GuySuCo’s European customer and the two entities have enjoyed a close business partnership over the years.

GuySuCo was assured that the new merger between T&L and ASR will not affect its current business contract and partnership with Tate and Lyle. The visiting officials of T&L reaffirmed their commitment to provide assistance in several areas so as to ensure the sugar industry achieves the goals of its Turnaround plan.

According to the T&L officials “ their aim is to help Guyana grow more cane, produce more sugar and to develop a viable sugar industry for the long term”.

American Sugar Refining Inc. is the largest cane sugar refiner in North America.

Meeting today at the Ministry of Agriculture

From left: Mr. Simon Gibbons - Senior Vice President T&L International Operations, Mr. Gavin Wakley - Commercial Director T&L Caribbean and Americas Sugars, Hon. Robert Persaud - Minister of Agriculture, Mr. Rajaindra Singh - Deputy Chief Executive Officer, GuySuCo and Mr. Paul Bhim - Chief Executive Officer (ag.) GuySuCo.

See below for related images:

July 6th 2010

Re: GuySuCo Board of Directors appoints Mr. Paul Bhim as the new CEO of the Corporation

Following its acceptance of the resignation by Mr. Errol Hanoman as Chief Executive Officer, the Board of Directors of the Guyana Sugar Corporation Inc. has taken the decision to appoint Mr. Paul Bhim as the new Chief Executive Officer (acting) of the Corporation.

It was also agreed that Mr. Hanoman will commence the handing over process to Mr. Bhim. Issues related to this and other matters of interest of the Corporation were discussed at a meeting today with the Hon. Minister of Agriculture Robert Persaud, Chairman of GuySuCo Dr. Nanda Gopaul, the outgoing CEO Mr. Errol Hanoman and the incoming CEO Mr. Paul Bhim.

A meeting with senior managers across the industry, other stakeholders inclusive of members of the unions is scheduled for Wednesday July 7th 2010, where the new CEO will be introduced.

Mr. Bhim joined the Corporation on November 1st 1995, prior to this most recent appointment he served in the position of Finance Director.

The appointment of Mr. Bhim as acting Chief Executive Officer was also ratified by the major stakeholders. The Board of Directors wishes Mr. Bhim a most successful stint at the helm of the sugar Corporation and is confident that he will continue the smooth implementation of the Industry’s Turnaround Plan.

From left: Chairman of GuySuCo Dr. Nanda Gopaul, outgoing CEO Mr. Errol Hanoman, new CEO Mr. Paul Bhim and the Hon. Minister of Agriculture Mr. Robert Persaud.

July 5th 2010

Re: GuySuCo Board of Directors accepts the resignation of Chief Executive Officer Mr. Errol Hanoman.

The Board of Directors of the Guyana Sugar Corporation Inc. has accepted the resignation of our Chief Executive Officer, Mr. Errol Hanoman.

Mr. Hanoman tendered his resignation on July 1st 2010, citing personal reasons for his decision. He came to the helm of the Industry as Chief Executive Officer in 2009 at a critical juncture; in keeping with a commitment to turn the fortunes of the Industry around.

The Board of Directors would like to thank Mr. Hanoman for his efforts in this regard and wish him well in his future endeavours.

March 31 2010

Re: GuySuCo remains committed towards returning the Industry to profitability in the shortest possible time

The Guyana Sugar Corporation Inc. is deeply concerned at the strike action by the Diamond workers and the call for severance pay.

The Corporation wishes to state that the retirement of the Diamond Lands is part of a programme to consolidate and modernize our East Demerara Estates, where our two factories have been working well below their respective capacities. We are also working assiduously to ensure our workers are not made redundant; rather our plans will provide greater employment opportunities for them.

It is in this context that the Corporation finds it difficult to understand the approach of some workers and the union and what appears to be a deliberate attempt by some to mislead the public.

It is important to note that the Diamond cultivation is part of the LBI estate, notwithstanding, workers at Diamond are provided with a disturbance allowance by the Corporation which is time based for the extra travel to the LBI cultivation.

We wish to emphasize that the Corporation has never denied anyone severance when it was rightly due; but in the present circumstances, it is clear to us that this is not an option.

There is also the possibility that if the workers were to be made redundant, this could necessitate the closure of the LBI factory as the workforce to ensure a more timely cane supply would decline further.

Reports that workers who travel to LBI are not provided with work are completely false. Because of the current ‘El Nino’ phenomenon, the Estate does not have the ability to irrigate its fields; hence, any category of workers affected has been offered suitable alternative work.

We also wish to clarify that out of our total workforce of over four hundred (400) attached to the Diamond cultivation, only ten (10) live beyond Friendship on the East Bank of Demerara and fourteen (14) travels from across the Demerara River.

GuySuCo wishes to emphasize that as part of its plan to return the Industry to viability, it has absolutely no desire to make any worker redundant. This is a far cry from experiences in other countries, where workers at every level are made redundant as businesses downsize or close.

The Corporation has written to the workers Union, GAWU to encourage its membership to support our initiatives to return the Industry to profitability and in this process, secure the employment opportunities for workers and their families.

In this challenging period for the Industry, where some are attempting to capitalize on our current position by distorting the realities of our rebuilding efforts, the Corporation remains firm in its entrenched objective of returning the Industry to profitability in the shortest possible time.

May 28 2010

GuySuCo does reasonably well in its 1st crop performance despite the effects of the ‘El Nino’ phenomenon

The first crop of 2010 ended on Monday 24th May, with Skeldon being the last unit to cease grinding. 

Despite the many constraints resulting from ‘El Nino’, GuySuCo has to date produced 81,684 tonnes of sugar (pending Skeldon’s final declaration) from a production target of 91,675 tonnes. This achievement represents 89.3% of our target.

Tillage and Planting are key indicators in the Industry’s refurbishment plan. In the first crop, the Industry achieved 86% of its tillage and 80% of its replanting programme.

Our outlook for production for the coming 2nd crop is extremely good, given that in 2009 the Corporation achieved 9,763 hectares in tillage which was 99% of our target for the year and 9,946 hectares of planting.

Rose Hall and Enmore experienced the most significant shortfalls in production. These two estates were the worst affected by the ‘El Nino’ phenomenon. Most of the canes harvested on these estates were from the front lands. These lands have high saline contents compared to the remainder of the cultivation. Under extremely dry conditions canes growing on these soils become totally desiccated and invariably die.

With the limited availability of water especially at Enmore, irrigation had to be restricted. Irrigation resources were concentrated mainly in supplying water in canals for cane transport and to a lesser extent keeping young plant canes alive.
The low navigation system especially in Demerara impacted negatively on canes reaching the factory on time. This resulted in extended burning to grinding intervals and subsequent loss in sugar.

SKELDON
A high number of stoppages were experienced during the 1st crop due to factors in both the factory and cultivation.

At the time of issuing this release, the number of defects at the factory was reduced to forty-one (41) of which four (4) are considered critical.

Based on the good work being done by both GuySuCo and the Contractor we are confident that by the start of the 2nd crop most of the defects will be rectified.

While the factory achieved a crushing rate of 250 tch (tonnes canes per hour) in the 1st crop, we are targeting 300 tch in the 2nd crop and 350 tch in the 1st crop of 2011, which is the design throughput.

The Corporation supplied the Guyana Power & Light Inc. with 18,737 MWh of electricity during the period January 1st 2010 to May 23rd 2010. The forecast for the year is 81,000 MWh, which compares with 38,142 MWh in 2009.

It is expected that the estate land expansion will be completed by the end of this year and the farmers’ expansion by 2011.

The Corporation recognizes that if conditions continue to be relatively wet at Skeldon, more tractors and mechanical harvesters will be required to achieve our objective in the reduced opportunity time.

FINANCE
Of real concern to the Corporation at this time is the depreciating Euro. The indications suggest that this situation will continue into the foreseeable future. A significant percentage of the Industry’s production is shipped to Europe. As a result, the value of the Euro will impact the Corporation’s finances.

March 26 2010

Re:Effects of ‘El Nino’ on Uitvlugt Estate, W.C.D.

Uitvlugt Factory, which has concluded its grinding for the 1st crop. Routine maintenance work is currently underway, as part of preparations for the 2nd crop in 2010.

Some of the many stop-offs on the cultivation to re-route whatever water is available to the more critical areas.

Stop-offs are also critical for the flotation of punts. In this image, a punt pulled by a tractor approaches a check-sluice, which assists in maintaining water levels in a specific section of the Estate.

Dry irrigation canals on the Estate.

Parched earth, indicates the extreme effects of the dry spell on our planted canes.

Images showing various stages of canes under severe moisture stress.

Boerasirie Conservancy, which is the only water supply source for the Uitvlugt Estate.

Water mark on the concrete drainage culvert, indicates the normal level of water in the conservancy.

Water by gravity flow from the Region 3 conservancy is not possible at this DNI intake structure.

March 24, 2010

Re: GuySuCo ‘El Nino’ Update

The first sugar cane crop of 2010 is drawing to an end. Rose Hall and Uitvlugt Estates have already completed the first crop. Albion, Blairmont, Enmore, LBI and Wales are due to complete within one to two weeks, while Skeldon would go up to the first week of May.

Average rainfall across the Industry continues to be extremely low and evaporation losses from the large surfaces of our extensive canal networks are enormous. We continue to suffer from soil moisture deficit, particularly on the East Demerara Estates.

Prediction from the International Research Institute for Climate and Society of the Earth Institute, Columbia University, USA, is that for the period April-May-June 2010, there is a 50% probability of occurrence of ‘El Nino’ weather conditions.

Cane growth and development has been affected at Blairmont, Enmore, LBI and Uitvlugt. This is more pronounced in the saline low-lying front lands at Rose Hall and Enmore. The Demerara Estates have had to cut back on their re-planting programme.

The Industry has had to confine irrigation to plant canes for germination and to plant canes two to seven months old, which are in their boom growing period. The least affected estates to date are Skeldon and to a lesser extent Wales, both of these locations were experiencing some sporadic showers, especially Skeldon.

However, the National Drainage and Irrigation Authority (NDIA) continue to pump water into the East and West Demerara Conservancies to maintain supplies for agricultural purposes and domestic use. Supply to East Demerara has been improved by taking in water by gravity through the sluice gate at Maduni during high tides, experienced last week. Similarly, the supply at West Demerara has been improved by building a stop-off and pumping at Two Mouth into the Service Canal.

The East Berbice Estates continue to receive adequate supplies of water for factory operations, cane transport and irrigation from the Canje Creek.

Blairmont is still obtaining water by pumping from the MMA main canal. East Demerara Estates are struggling to maintain their navigation canals for flotation of punts by pumping from the East Demerara Conservancy. Wales Estate continues to obtain a reliable supply of fresh water from the Kamuni creek via pumping. All the Estates are re-circulating water. With the crop over at Uitvlugt Estate, available water is currently being channeled into areas where cane is being planted.

Mobile pumps released from NDIA are still in operation to supply water to Enmore, LBI and Wales. Skeldon Estate had also released one Mobile pump to Blairmont and one to LBI which are also utilized for water supply.

The integrated agricultural strategy developed and the water management measures adopted by the Sugar Industry have so far been successful in mitigating some of the adverse effects of the ‘El Nino’ weather conditions.

Water Management Strategies implemented includes the following: Optimum Water Conservation Practices; Recirculation/Re-cycling of Water, Monitoring of Water Availability and Quality at Source; Monitoring of Soil Moisture; Close Monitoring of the Operation of Water Control Structures; Appropriate Harvesting Sequence; and Appropriate Crop Husbandry Practices.

Water Conservation Practices includes recirculation of water from the drainage system into navigation canals for cane transport and irrigation. Sluice gates are locked and secured to prevent intrusion of salt water. Daily water quality monitoring is done in areas where pumps are used for water supply and recirculation of water.

The operation of the gates on the Torani canal are closely monitored to ensure that adequate amounts of water are released to augment the supply of fresh water down  the Canje Creek for the East Berbice Region. Check sluices and stop-offs are used to control water levels and water quality within the canal networks for irrigation and transport of cane punts.

Canes are harvested in sectionalized blocks to optimize and conserve on the use of water. Water from canals within harvested blocks are released and pumped out into canals within blocks, which are to be subsequently harvested.

By careful planning and development of an integrated agricultural strategy which includes stringent water conservation measures, and by making efficient use of available water resources, the Sugar Industry has succeeded in planting substantial quantities of new cane despite the prolonged agricultural drought.

Since the weather can be volatile and so as not to be caught off-guard, the Industry is already making preparations for the anticipated May-June rains.

PUMPING OF GOOD QUALITY WATER FROM KAMUNI CREEK INTO WALES DISTRIBUTARY CANAL SYSTEM FOR FACTORY SUPPLY & NAVIGATION/ IRRIGATION

WATER BEING PUMPED INTO A CANAL WHICH DIRECTLY FEEDS THE ENMORE FACTORY

DRY CANALS IN THE ENMORE ESTATE

March 3, 2009

Re: Extended dry spell worrying the Sugar Industry

The ‘El Nino’ phenomenon started in August 2009 and over the past seven months, the dry spell has increasingly affected the operations of the Guyana Sugar Corporation.

Availability of water has been hindered by the dwindling levels of the canals, rivers and conservancies, the Industry relies on to irrigate the estates.

The main areas affected Industry-wide are cane transport, replanting and irrigation of planted canes.

While the current weather is ideal for tillage this has been restricted as in order to till and maintain adequate cane cultivation, planting has to be done simultaneously.
Currently, the most affected estates are those in East Demerara. Both Enmore and LBI rely on the East Demerara Water Conservancy for their source of water, which is at its dead storage level.

All Estates which are currently grinding have been sectionalizing areas for cane harvest where possible, so as to ensure an adequate level of water to transport punts to the factories.

Through a collaborative effort with stakeholder agencies such as the National Drainage and Irrigation Authority (NDIA) and the Mahaica-Mahaicony, Abary - Agricultural Development Authority (MMA/ADA), GuySuCo is working to address these issues.

The Drainage & Irrigation resources of the Corporation are being reshuffled based on the urgency of individual estates, which are constantly monitored.