JAMAICA'S IMPORTATION of 20,000 tonnes of sugar from Belize and Guyana as reported in Tuesday's Gleaner would on the surface suggest 'taking coals to Newcastle.' This is understandable, as the Jamaican sugar industry has been the mainstay of the agricultural sector and a major player in the development of the country's economy for the greater part of its history. As such Jamaica is seen as a sugar country and should at least be able to produce enough to meet local demand especially at a time when our traditional export markets are being threatened by more efficient producers.
On reflection, however, we are confronted with the reality of an industry that has failed to achieve its production targets for well over a quarter of a century. We are told that we have markets for 300,000 tonnes of sugar annually comprised of the EU, the US and the local markets. Since the late 1960s we have not been in striking distance of that figure. In fact over the past five years we have been struggling around the 200,000 tonnes mark and have dipped below it twice. This latest crop at an estimated 175,000 tonnes has achieved the distinction of being the lowest in more than 50 years.
While there may be plausible reasons for the shortfall this time in the prolonged drought in the early part of last year and the devastating flood rains of May this year, we are convinced that apathy, inefficiency and inappropriate use of resources have played an equal role.
The industry has prided itself on being able to meet its export quotas each year. Since this means the earning of valuable foreign exchange and is negotiated at a price higher than what is asked of the local consumer we do not have a problem there. What is disturbing is the fact that we can import from our CARICOM neighbours year after year at a price lower than our production costs. When the existing special arrangements with the EU come to an end in another few short years we will not have even the local market on which to fall back as our competitors will easily fill it. Unless, that is, we are able by that time to improve our production efficiencies to a level that will make us competitive in the free market system.
But there is yet another and perhaps even more disturbing aspect to all of this. It is the fact that after four centuries we have failed to make the technological progression from the status of producer of a primary product to one of the value-added. We not only import raw sugar from our neighbours; all of the refined sugar we consume comes to us from the countries to which we send the raw material in the first place. The Jamaican sugar industry needs urgently to wake up to the reality of the changed marketplace or it will soon find itself with a product that no one wants at such a price.
