Devon Evans, Gleaner Writer
OCHO RIOS, St. Ann:
THE SUGAR Industry Research Institute (SIRI) has described as 'dismal' the 2002/2003 sugar crop.
Addressing the 66th Annual Conference of the Jamaica Sugar Technologists at the Renaissance Jamaica Grande Hotel in Ocho Rios, St. Ann, last week Thursday, SIRI's Joshua Jaddoo said the last crop season was characterised by a significant downturn in cane production at all factories (when compared to 1996), very poor cane quality and inefficiency at the factories.
Mr. Jaddoo said that income from sugar had decreased from US$139 million in 1996 to under US$72 million in 2003 while the cost of production increased. The exchange rate in 1996 was $35.32 to US$1 compared to $58.00 to US$1 at the end of the 2002/2003 crop.
Last season, 153,157 tonnes of raw sugar was produced, the lowest since 1943 when just over 154,320 tonnes was produced compared to 175,265 tonnes in 2001/2002.
Mr. Jaddoo said that about 293,164 tonnes or 54,000 tonnes more than last year's 239,000 tonnes of sugar would be required to attain the comparative 1996 revenue.
FRIGHTENING
"It is most frightening to see the industry losing an accumulated $7 billion or 157 per cent (of the 1996 earnings) over the past seven years due to both the declining price and production," said Mr. Jaddoo.
Derek Little, another SIRI official, said that earnings from the sale of sugar alone will not be enough to rebuild the industry to a satisfactory level of production, but also carefully managed investment capital, which will achieve the long-term goals.
In the meantime, Agriculture Minister, Roger Clarke, said that although there had been a sharp decline in sugar production over the years, the industry continued to contribute immensely to the stability of many rural communities.
"I believe that all is not lost in the sugar industry. We have the capacity, we have the expertise. We need to contain things lacking in terms of, probably, capital, but I believe that if we knock heads together we can find a way," he told the conference.
He said, however, that with plans for increased production a refinery should be established to process the excess amounts for which there is an additional market. The Minister also said that the production of ethanol would provide an opportunity for increased sugar production.
But, Mr. Clarke said: "We cannot continue to operate all those factories at those levels of inefficiency."
