Sugar production slumped by 60.4% during the first half of 2024 with production of 6,739 tonnes of the sweetener reported by the state-owned Guyana Sugar Corporation (GUYSUCO), according to the Finance Ministry’s report on the country’s economic performance from January to June.
“This performance is attributed to the carried-over impacts of drier-than-usual weather conditions last year into the second quarter of this year,” the document states.
The government, according to the report, forecasts that as a result of the performance in the first half of the year, the growth projection for the sector is now 16.3% for 2024, with a revised projection of 70,000 tonnes of sugar to be produced this year.
Sugar prices averaged US$0.46 per kilogram during the first half of 2024, a 6.6 percent decline when compared with the average in the first half of 2023. “The lower sugar prices can be largely attributed to higher production levels in major producing countries, particularly Brazil,” the half-year report states.
Looking ahead, the half-year review said sugar prices are now projected to average US$0.50 per kilogram, below the US$0.52 per kilogram recorded in 2023.
In terms of diversifying and modernizing the sugar industry, while reducing the cost of production, the report states that during the first six months of 2024, 2,734 hectares of land were converted to support mechanized cultivation and harvesting of sugar cane at the Rose Hall, Albion, Blairmont, and Uitvlugt estates, bringing the total land converted to 8,400 hectares.
The industry currently employs 8,179 persons and it is anticipated that employment will expand to over 8,300 in the remainder of the year, the report states.
Other plans for the sugar sector include the operationalizing of six additional cane harvesters by the end of 2024, increasing the fleet to ten, rehabilitation of heavy and light duty revetments to strengthen the drainage system across the industry, and the installation of a GY$60 million sugar dryer at Blairmont Estate by the end of 2024. “This dryer will enhance the quality of the sugar for packaging.”
The mid-year report also says the two additional lines at the packaging plant at Blairmont and construction of the building for the packaging plant at Albion are on track to be completed by the end of the year.
Several other actions being taken in the sugar industry include increased frequency in the maintenance cycle of canals, examination of cropping periods based on reduced opportunity days to adapt to changing rainfall patterns and durations and lifting mechanized beds to get canes off the ground at a faster rate to maximize the reduced opportunity days afforded by climate change effects.
Twelve Cuban specialists have been hired to provide expertise in areas of cane production and factory engineering.
