Demerara Distillers Limited, DDL, has announced that initial assessment of its distillery production for 2017 shows that is has surpassed projections, with an increase of 30% over 2016.
In keeping with this trend, and largely resulting from DDL’s intensive efforts in international marketing, the distillery production for 2018 is now projected to increase by a further 25% over 2017.
In this regard, DDL is concerned about developments regarding the state of the sugarcane industry, and the potential downsizing of sugar production.
These concerns are grounded in the long historical relationship between DDL and GuySuCo, in which DDL is dependent on the sugar estates for its molasses raw material, and in turn is a significant source of cash flow to GuySuCo for its operations.
With the impending closure of sugar estates, there will be a considerable short-fall in molasses availability,which is directly related to the reduced projection of sugar production.
In fact, based on production demand for local and international customers, DDL’s molasses requirement for 2018 is 70,000 tons.
In contrast, GuySuCo has set a sugar production target of 115,000 tons at the three estates currently earmarked to remain in operation, with molasses production being pegged at 52,000 tons.
In light of this shortfall, DDL has been actively exploring its potential role in the future of the sugar cane industry, and has executed a high-level technical and economic feasibility study on innovative approaches to use the existing sugar assets to meet the current and future needs for molasses for an expanding distilling industry.
DDL therefore welcomes the comments from Minister of State, Joseph Harmon, at this week’s post-Cabinet press briefing, indicating that the Government of Guyana is still open to options that keep the GuySuCo estates operational until arrangements are finalised for them to be privatised.