In November last year a development occurred that piqued the interest of the blogmaster. President of CoopEnergy Trevor Browne indicated the government had changed its original position regarding a plan to divest from the Barbados Agricultural Management Company (BAMC). Based on media reports it seems there was an expectation CoopEnergy would own 55% stake in the new company, workers 20%, and 25% private investors. The change in position reported in the media was that government would retain 25% interest in the new operations and appoint 2 members to the Board of the new entity. Mr. Browne from CoopEnergy also lamented the lack of financial reports that was hindering the deal.
Minister of Agriculture Indar Weir in a public dismissal of the claim stated CoopEnergy’s assertion was incorrect. In fact he countered strongly by highlighting that CoopEnergy had not fulfil its commitment to inject 16 million dollars into the deal as agreed. Weir promised to convene a meeting quickly to address the ‘misunderstandings’ that had leaked into the public space. It is in the interest of all concerned to resolve any ‘misunderstandings’ to protect investor confidence. Truth be told the matter has faded from the public space since the initial blowup which suggests both parties have agreed to a gag order.
What has further piqued the interest is a recent announcement by Chairman of the Barbados Sugar Industry Ltd (BSIL) Mark Sealy the group he represents will be requesting a price increase. What is alarming is that the rate increase request is expected to be levied on the 2025 sugar crop harvest. Bear in mind the harvesting season is anticipated to start latest by the 15th of February 2025. How is it possible for one of the key players in the process to share such a significant position in public on the eave of the sugar harvesting season? Last year under the new management for the first time there was also a delay due to negotiations with the Barbados Worker’s Union (BWU).
One does not have to be a Rihanna to know a successful business cannot be achieved by pulling hard on the levers of key expense drivers at the last minute. Especially if the business is a ‘start up’. Surely the blogmaster must be missing something based on what is unravelling. Does the BSIL realistically expect to receive a rate increase for its members in 2025? How does the anticipated rate increase impact the business plan of CoopEnergy and related companies created to manage the sugar industry and spin off energy business?
It seems there is some more work required to optimise the workings of the new business model between the different actors i.e. government, CoopEnergy, BSIL and possible others. Obviously there is more than meets the eye associated to this matter. A wondering public already vested in the process – an unknown amount at this stage – would expect parties involved to exercise the highest level of professionalism and business acuity to make what is a medium to high risk venture a successful one.
The blogmaster invites you to join the discussion.