SOME local sugar producers have been stretching themselves to revive alternative by-products, in a bid to minimise the effect that the recent reduction in quota prices from the European Union (EU) will have on the ailing sector.

The general consensus is that the industry needs to be seen as a sugar cane industry, rather than one based solely on the production of sugar for export.

Against this background, some sugar producers have decided to look backwards into long abandoned or virtually forgotten by-products such as wet sugar and molasses, in addition to the move towards producing increased amounts of ethanol and cogeneration for generating electricity.

At the forefront of this drive is the Jamaica Cane Products Limited, which produces wet sugar and molasses under its Duckenfield Pure Cane Sugar brand.

As the name implies, wet sugar is formed during the process of making sugar. It is, however, far healthier and as many of its aficionados would agree, a far tastier alternative.

Wet sugar contains a number of vitamins and minerals, and has a high fibre content, which health food advocates can appreciate.

Molasses, which is used primarily in the baking industries and in kitchens as a carrier to sweeten pies, buns, drinks and puddings, among others, is also a long established product formed during the making of sugar.

Sales and marketing manager at Jamaica Cane Products, Leo Nesbeth, told the Observer that in attempting to diversify the offerings of the industry, ‘backward’ and ‘forward linkages’ are required. He, however, emphasised that the ‘backward’ alternatives required less capital outlay, as they made use of already existing processes and equipment.

“Backward linkages require less resources, but there are existing limitations, including the fact that in our Diaspora market in the EU whatever sugar-based product we produce has to be deducted from the existing sugar quota of 126,000 tons and is therefore subject to the reduction in price, and in the United States there are severe duties slapped on products containing sugar – as was the case with Milo which the Americans determined contained a high percentage of sugar.

“Our strategy therefore will be, in addition to maximising the potential of the local market, to seek to penetrate regional markets such as the Bahamas, Barbados and other Caribbean countries which no longer produce sugar,” said Nesbeth.

Jamaica Cane Products already exports packaged brown sugar to Cayman, part of a $94-million industry of between 1,500 to 2,000 tons in packaged brown sugar which is sold locally under the Golden Crystals brand.

Jamaica Cane Products currently produces approximately 3,000 cases annually of wet sugar and molasses, with wet sugar accounting for some 60 per cent and molasses 40 per cent. Nesbeth argued that with the growing health food consciousness, more consumers locally and internationally will be looking towards products such as wet sugar and molasses.

But for the time being, he will concentrate on niche markets for the product, including health food markets and the makers of various tonic drinks. He will also cater to those people who yearn for the nostalgia of the days when they sipped delicious wet sugar lemonade or sour orange drinks.

He is also exploring alternatives such as ginger wet sugar and other variants, in a bid to introduce consumers to new markets locally and abroad.

In January, the EU imposed a 36 per cent cut in sugar subsidies, bringing to a close a decades-old preferential regime given to former colonies in the Caribbean, Africa and the Pacific (ACP).

Under the former regime, the EU gave assured access to its markets and paid higher prices to encourage development. But the World Trade Organisation (WTO) determined that the practice was unfair, and ordered the bloc to reduce quotas and prices paid for sugar, as well as other commodities such as bananas and cotton.