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Big role for cane farmers in Chinese-run operations
BY PATRICK FOSTER Observer writer fosterp@jamaicaobserver.com
Tuesday, July 27, 2010
CEO Sugar Corporation of Jamaica Holdings Limited Aubyn Hill yesterday assured private sugarcane growers that they have nothing to fear about Government's deal with the Chinese to substantially increase the acreage of cane lands across the island.
Instead they will be required to play an important role when the Chinese take control of the recently divested sugar entities.
The Chinese company, Complan, is expected to put into production approximately 50,000 acres of additional SCJ cane lands left idle for decades because of Government's inability to adequately finance the industry.
Hill, who was guest at yesterday's Monday Exchange meeting of reporters and editors at the Observer's Beechwood Avenue headquarters, said that a $170 million cane expansion programme was established to assist the independent cane growers.
According to Hill, the SCJ has committed $80 million, and the agriculture ministry a further $90 million for cane growers, in an expansion programme that should allow them to keep pace with the requirement of the new owners of the sugar estates.
"The independent farmers are an important part of the mix," said Hill. "We cannot get away from that," he added, saying that the farmers were excited about the prospects going forward.
Independent sugarcane growers currently supply on average 45 per cent of the total amount of cane bought annually by the sugar factories.
However, with the projected greater demand from the Chinese and increased canefields under their control, independent farmers, at present production rates, could be hardpressed to deliver.
"That percentage could change, it depends on the capacity of the [independent] farmers," Sugar Industry Authority chairman, Derick Heaven said in an interview with the Observer after the Monday Exchange meeting.
Heaven said that the Chinese would try to get as much throughput as possible from the lands under their control, but hinted that the factories would also encourage independent farmers to increase acreage and productivity. "We hope they [farmers] can be motivated," said Heaven.
Two weeks ago Agriculture Minister Christopher Tufton announced that Complan, purchaser of the Monymusk, Bernard Lodge and Frome estates, would be leasing additional lands to increase the acreage of sugar cane needed to profitably feed the factories.
President of the All Island Jamaica Cane Farmers Association (AIJCRA) Allan Rickards, while agreeing with the move to help his members, told the Observer yesterday that he was unaware of the amount of funds to which the SCJ chairman referred.
"Government budgeted $200 million as part of the cane expansion for everybody growing cane. Sixty million dollars of that is for irrigation," said Rickards. "That is what is funding cane expansion programme," he said.
Rickards, however, admitted that cane farmers would now have to step up their productivity as well as acreage to keep apace with the expected demands of the Chinese.
"We intend to step up to the plate and increase production from the existing lands that we farm," he said.
According to the AIJCFA president, farmers became disinterested in cane production after recurring problems with the haphazard throughput of factories in the past.
"In areas where the factories did not start on time there was a lack of incentive for farmers to plant," said Rickards.
He added funding was always a problem, but with the projected increase in production, private farmers were now eyeing the possibility of acquiring SCJ land with the intent to keep their 45 per cent average.
"We expect to keep that ratio," Rickards said. "It is a secret ambition of ours to get more of the factory land,' he added.
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