Declining sugar production linked to inoperable Skeldon Estate

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Production of sugar was recorded at 49,606 tonnes at the half year mark, compared to 56,645 tonnes during the first half of 2016, a decline of 12.4 percent. This shortfall was mainly due to no production at the Skeldon estate because the boilers were unsafe and required significant repairs.

This information is detailed in the Ministry of Finance’s half year report.

According to the Report, further, cane yields were 50.2 tonnes per acre in the first half of 2017, up from the 45.2 tonnes achieved in the first half of 2016, but below the targeted 54.3 tonnes for this year. Among other factors that affected sugar production were the late supply of critical operating materials such as fertilizer; pest damage, particularly at the Blairmont and Uitvlugt estates; unfavourable weather; and strikes and absenteeism. As a consequence, the industry was unable to reap its entire first crop, with approximately 150,000 tonnes of cane being carried over to the second crop of 2017.

Despite weak performance in the first half of the year, production in the second half is expected to be on target. The sugar industry continues to take measures to address its unsustainable cost structure including the rationalisation of existing estates. In this regard, preparations will begin for the divestment of the Skeldon estate; Wales and Uitvlugt estates will be amalgamated and farmers reassigned to the Uitvlugt factory; and Albion and Rose Hall estates will also be amalgamated. During this process, the retention of workers will be paramount, with some lands being leased to workers in order to facilitate their engagement in other agricultural pursuits.

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