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Update on 2024 Sugar Crop

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Press Statement from the Directors of the Barbados Energy and Sugar Company Ltd (BESCO) and the Agricultural Business Company Ltd (ABC) on the general performance of the 2024 sugar harvest under the new private ownership.

Successful 2024 Sugar Crop
The 2024 Barbados sugar harvest ended officially on June 22, after a March 25 startup of operations.

Directors and management of ABC Ltd and BESCO Ltd wish to express our deep and sincere thanks to all managers, staff, and our other associates, for their excellent work and strong commitment to ensuring the success of this harvest exercise.

Having undergone fundamental changes in ownership and in operational structure only in January 2024, the levels of commitment and performance seen during the season have been more than commendable. We are therefore even more excited about the future, as we work together to transform this vital aspect of local agriculture.

Some 4800 tonnes of sugar and over 8000 tonnes of molasses are available for consumption. This year just over 101,000 tonnes of cane were ground compare to 109,000 tonnes in 2023. These figures are well in line with our expectations for 2024.

A high point for us has been the exceptional performance of the aged Portvale factory, performing with very good reliability. Indeed the main reason for factory stoppages this year was low cane stocks as deliveries tried to keep up. This we believe, is a reflection of the skill and commitment of our management and staff in knowing the equipment, and properly preparing for the season. We also wish to note the outstanding performance of the Agricultural Business Company (ABC). Now the single largest sugar cane farming entity on island. ABC provided some 26% of the sugar cane delivered in 2024, and did so at impressively improved levels of efficiency. We are generally therefore quite satisfied with the overall performance of the 2024 sugar crop.

Concerns
We note that some concerns have been raised about the ‘late’ start of the crop. We do appreciate the concerns being expressed by interested parties for the success of our new enterprise, however, please be aware that decisions made by our operations are, and will be made by our management teams based on an abundance of factual data available, and on the best judgement of our professional and capable staff.

We are not discounting the concerns raised by others based on their experiences, but the new management teams of ABC and BESCO have chartered a totally new path for the sugar cane industry in Barbados.

For example, the date of commencement of harvest operations is a matter that takes into consideration not just what is best for the farmers, or the factory, or any single group, but the best overall interest of the industry. To continue with the traditional approach would overlook these important variables which management must consider in making their determinations. We fully expect to have an earlier start in 2025 – all factors considered.

The 2024 results now confirm that our management teams had made wise choices, and this reinforces our commitment to following scientific rather than traditional advice.

We thank the Minister of Agriculture and his various teams, the Chairman and Board of BAMC, the management and staff of BESCO and ABC and all of our various contractors and associates who supported our 2024 harvest operations.

Boards of Directors of

ABC / BESCO

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18 responses to “Update on 2024 Sugar Crop”

  1. David Avatar
    David

    The blogmaster is happy to see reference to Mark Sealy’s comment regarding the late start of the 2024 sugar harvest. It seems like every opportunity he got to offer his concern about the late start of the harvest, he took it:

  2. Pachamama Avatar
    Pachamama

    While the efforts of the new management must be encouraged there are some fundamental issues not made contact with.

    Weee are left to wonder how such low sugar cane cultivation levels could make sense in the short and médium terms.

    In these circumstances, all other variable being equal, would it not be better to abandon this enterprise?

    Other factors along this line.

    However, it’s good to see that scientific management approaches are given their proper place within a culture, an agriculture, of a hundred years of persistent failures.

  3. John Avatar
    John

    David
    July 14, 2024 at 1:29 am
    Rate This

    The blogmaster is happy to see reference to Mark Sealy’s comment regarding the late start of the 2024 sugar harvest. It seems like every opportunity he got to offer his concern about the late start of the harvest, he took it:

    ++++++++++++++++++++++++++++++++++++

    The earlier the start the earlier the finish.

    Rain!!

    https://www.foxweather.com/weather-news/saharan-dust-levels-atlantic-hurricane-season-july-2024

  4. David Avatar
    David

    @John

    Did you read where Chaiman Browne address the concern raised about the late start? You Whites raped and pillage the industry for hundreds of years, allow the new owners some time to implement its new business model.

  5. John2 Avatar
    John2

    Too much rain delayed the earlier start

  6. David Avatar
    David

    It was not only rain, there were protracted negotiations with the BWU which was highlighted in the media.

  7. David Avatar
    David

    How about discussing the divisive political rhetoric that has informed an increasingly level of dysfunction in society. This is what intellectuals among us should be discussing.

  8. NorthernObserver Avatar
    NorthernObserver

    Based on reports, there was a long term contract with a foreign entity to purchase sugar at prices much lower than market. The change in ownership saw the end of that contract. And renewed enthusiasm the continual losses at the BAMC could be reversed.
    Hence the success on ’24 will be the sales, not the production, of local sugar. Initial reports ‘suggest’ based on the factory’s performance, costs should be in line with expectations.
    Once again, the end of the BAMC role without any recent reports, leaving the public coffers which absorbed the losses, without explanation as to how such a disadvantageous contract began in the first place.

  9. David Avatar
    David

    @NO

    Clyde Mascoll and Minister Weir promised to update the public but you know how that goes. BUT stands ready to distribute any information that would enlighten the taxpayers on these dark back room deals. After all it is the taxpayer who as always has to pick up the tab.

  10. NorthernObserver Avatar
    NorthernObserver

    Mascoll, a la Avi, is likely to “update”. However, unless he was a Board member at the time the contract was signed, will not offer insight beyond “it happened” (contract confirmation). If he did, that would point to accountability, which isn’t happening. The delay in Reporting, allows another decision to occur without consequences to anyone but the taxpayer.

  11. NorthernObserver Avatar
    NorthernObserver

    BTW, whatever happened in the Radical lawsuit in the USA?

  12. Hants Avatar
    Hants

    ” You Whites raped and pillage the industry for hundreds of years ”

    Didn’t know you had the balls to write the above comment.

  13. Hants Avatar
    Hants

  14. John2 Avatar
    John2

    I interpreted John’s comment to be pointing to the fact that when the crop finish early then preparations for next year crop would benefit from the up coming rainy season. I was just point out to him that too much rain was also detrimental to an earlier start .

    I was also in the media that they were waiting on the sucrose contents to reach a certain level before they started .

    Like all others I discuss what I choose to

  15. Terence M Blackett Avatar
    Terence M Blackett

    WILL THE MOTTLEY CREW GOV NOW PUSH 2 PAST THIS FORMER SLAVE LAND UPON WHICH SO MUCH “#Blood CRIES FROM THE ATOMS OF THE SOIL TO THE PROGENITORS OF THAT EVIL TRADE IN HUMAN LIFE

  16. Hants Avatar
    Hants

  17. David Avatar
    David

    Concern about future of the sugar industry

    by ANTHONY P. WOOD IN AN ARTICLE entitled “110 000 tonnes hit sugar cane mark” in the SATURDAY SUN of July 27, Minister of Agriculture Indar Weir said, “This (2024) will be the last year that the Government will be providing support in terms of Government financing of the sugar industry . . . . We will maintain certain things like the climate mitigation subsidy, which basically is an incentive for farmers to practise good husbandry and increase yields, but over and above that the Government will be out of that space.

    “The savings to the Government should be somewhere around $30 million, and then the private owners will carry that responsibility of harvesting, carrying the costs and ensuring that the industry is efficient enough to generate a profit.”

    A number of issues emerge from Minister Weir’s revelation. First, when the costs of certain things like the climate mitigation subsidy are considered, the Government provided in excess of a staggering $30 million in financing for the sugar industry during the first transitional year – that is, whilst under the first year of management by the two companies owned by the Barbados Sustainable Energy Cooperative Society Limited (CoopEnergy).

    Substantial losses

    The information provided by Minister Weir will be considered an answer to the question asked publicly on numerous occasions by economist Anthony Wood regarding the level of committed financing to CoopEnergy by the Government, given that the sugar industry will continue to incur substantial losses in the future.

    The magnitude of the sum helps to explain why the key financing question asked by Wood remained unanswered for such a lengthy period.

    In the interest of accountability and transparency, Minister Weir should state explicitly the things that the Government will maintain financial responsibility for and the level of financial commitment for them, chief among which is the climate mitigation subsidy.

    Minister Weir should also tell the public whether the more than $30 million provided by the Government is indicative of the gross loss or net loss of the sugar industry in 2024. That is, did the Government underwrite the full cost of running the sugar in 2024 and allowed CoopEnergy to build up its cash reserves by retaining the proceeds from the sale of sugar and molasses?

    This is the only feasible condition (though it might turn out to be unrealistic) that will allow the Government to walk away from providing $30 million to finance the sugar industry next year.

    If the above condition was agreed to by the Government, it would be necessary for the existing shareholders of CoopEnergy (including the 1102 former employees of the Barbados Agricultural Management Company Limited) and prospective shareholders to know the net loss of the sugar industry in 2024. That is, when the revenues from the sale of sugar and molasses are factored into the equation, did the industry lose $10, $15, or $20 million?

    Herculean task

    Ascertaining the true loss figure for the industry will be crucial since CoopEnergy will have to develop a realistic business model that will facilitate a financial turnaround in the industry in the shortest possible time. This will be a herculean task given the insignificant acreage of land under sugar cane cultivation, the inefficient state of Portvale Factory, the uncertain state of the national renewable energy policy, and the inability of the private cane farmers in the Barbados Sugar Industries Limited (BSIL) to conclude a forward contract with CoopEnergy (or the Government) which assures them of an appropriate level of financial support through the climate mitigation subsidy and an adequate price for their canes delivered to the factory for at least the next five years.

    This contract is vital for the BSIL farmers, who account for almost 75 per cent of the sugar cane lands, to commit their future to the industry over the medium to long term.

    Another issue emerging from Minister Weir’s revelation relates to the likely behaviour of CoopEnergy’s shareholders and other financiers to the news that after 2024, the private owners (CoopEnergy) will have to carry the costs (minus the climate mitigation subsidy) of the sugar industry and ensure that it is efficient enough to generate a profit.

    A fundamental concern is whether the leadership of CoopEnergy will be able to convince existing and potential shareholders and financiers that the transformation model for the sugar industry is a wise investment given the prevailing factors impacting negatively on the industry and its very unprofitable state. In the circumstances, can CoopEnergy realistically obtain the almost $100 million required to retrofit Portvale Factory over the next three years for its role in the targeted energy industry?

    A tangential issue emerging from Minister Weir’s revelation relates to the agreement entered into between the Government and CoopEnergy for the use of the public assets (sugar plantation lands, Portvale Factory, office buildings, harvesters, delivery trucks) in the new arrangement. In the interest of accountability, transparency and good governance, the Government should tell the public whether the state has retained ownership rights in any of the assets.

    Anthony P. Wood, is an economist and former lecturer in economics, and banking and finance at the Cave Hill Campus of the University of West Indies. He was also a Cabinet Minister in a previous Barbados Labour Party administration. This article was submitted as a Letter to the Editor.

  18. David Avatar
    David

    Barbados rum industry thirsts for sugar boost

    The world-renowned Barbados rum industry is poised for a dramatic expansion, but there’s a catch – it needs more sugar. Despite producing nearly 5 000 tonnes of sugar this year, the island’s revamped sugar sector must increase production to properly fuel its world-class rum business, Agriculture Minister Indar Weir said.
    Speaking at a seminar on supplying Barbadian products to the global cruise industry, Weir praised the impressive harvest following the privatisation of the sugar industry. However, he acknowledged that it fell short of meeting the rum sector’s growing demands.
    “Our sugar industry which has been recently privatised has just produced 4 800 tonnes of Barbadian sugar. Our sugar is known for its high quality and there is an opportunity to work with stakeholders in the sugar industry. We’ve just completed 8 000 tonnes of molasses, but of course, that’s not enough because we have a very strong rum industry, “the minister said at the seminar held at Hilton Barbados on Monday.
    The island’s sugar industry has undergone significant changes, with two new companies – Barbados Energy and Sugar Company Inc and Agricultural Business Company Ltd – taking over the state-owned Barbados Agricultural Management Inc on January 15.
    As the island looks to capitalise on its rum heritage and expand its presence in the global market, the pressure is on for the sugar industry to keep pace. Weir said, despite the need for more locally produced molasses, the level of production and expertise demonstrated frequently by rum producers must be applauded.
    “I am extremely happy and very proud of what our rum producers are doing, by producing some of the finest quality rums that you can find anywhere in the world,” he said.
    Tourism Minister Ian Gooding-Edghill, echoed the sentiment, emphasising Barbados’ unique position as the birthplace of rum. He argued that this compelling story should ensure Barbadian rums are available on every cruise ship, allowing guests to sample their exceptional blends.
    The seminar, dubbed Provisioning Barbadian Products to the Global Cruise Industry, aimed to connect local manufacturers and distributors with cruise line officials, potentially opening new avenues for Barbadian products in the cruise industry.
    (SB)

    Source: BT

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