The future of the once-dominant industry has faced an even more uncertain future since the price of cane sugar in the European Union market was cut by 36 per cent in 2008. The reduction marked the end of a long-running sugar protocol, which guaranteed much higher than world market prices, but which was ruled by the World Trade Organisation to be contrary to global free trade rules. In Guyana, the Caribbean's leading producer, workers have been staging industrial action to support higher salaries, Jamaican growers have had their own pay dispute while the ailing Belize industry was rescued by a government bail-out.
Recent Developments
Guyana
The state-owned Guyana Sugar Corporation (guysuco) says it is heading toward its lowest annual production in two decades as a result of strikes, heavy rain and operational problems at its newest factory. Chief executive Paul Bhim said Guysuco will likely produce no more than 198,000 tonnes this year, well below the 254,000 tonnes target set at the beginning of the year. He said heavy rains and a lean staff will make it hard to reach even 209,000 tonnes by year-end. More than 20,000 workers went on strike last month to demand pay raises, which Guysuco said it could not afford. The Guyana Agricultural and General Workers Union staged a one-day walkout in October for similar reasons. The union also has asked the government to temporarily shut down a US$200 million Chinese-built sugar mill so it could repair mechanical defects. Guyana has previously penalised the state-owned China National Technical Import and Export Corporation for the problems.
Jamaica
Jamaica's sugar harvest began December 10 with one of its eight companies starting production after a pay dispute with farmers was resolved. The Frome Sugar Estate in western Jamaica began milling operations, while the remaining factories are expected to get going between late December and early January. Authorities expect to produce 145,000 tonnes of sugar during the harvest, which is expected to end in July. Sugar is no longer dominant in the Caribbean. The industry produced 121,000 tonnes during the last harvest. Cane farmers and Sugar Company of Jamaica, which has overall responsibility for managing the industry, agreed on increased rates for sugar cane supplied to estates a day ahead of the start of the crop. Farmers had threatened to withhold their supplies of sugar cane until industry officials raised the price. Earlier this year, the Jamaican government sold off three of its largest, and loss-making, sugar plants to the China National Complete Plant Import and Export Company Ltd for US$9 million. The sale is expected to take effect at the end of the 2010-2011 harvest. The timing was intended to allow Jamaica to fulfill a forward sale export agreement with Tate & Lyle to provide the British company with 100,000 tonnes of sugar. In 2009, Jamaica sold two other state-owned factories to private local buyers.
Belize
Cane farmers in northern Belize have been receiving payments for last year's crop; after a cash crisis forced the postponement of the start of a new harvesting season. This was possible after the government stepped in with a US$5million loan. The company which runs the industry, Belize Sugar Industries Ltd, was unable to complete the so-called third payment to farmers. The cash-strapped firm's bankers pulled a line of credit; leading Prime Minister Dean Barrow to say that the industry was on the brink of collapse. The emergency loan was approved by Parliament on November 24 but even then there snags, necessitating a delay in disbursement until December 7. The farmers will use the money to help prepare their farms for the next crop, which was expected to start in late November but has been postponed. AP