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Business, Financials
AP  
December 30, 2010

Guyana to buy sugarcane harvest machines from US

Caribbean producer facing worst crop in two decades

GEORGETOWN, Guyana (AP) — The Caribbean’s leading sugar producer says it will buy harvesting machines to replace striking workers.

Agriculture Minister Robert Persaud says that the equipment will be bought from at least one company based in Brazil and from US manufacturer John Deere.

He says that the machines are needed to keep exporting nearly 200,000 tons (181,000 metric tons) of sugar a year.

Guyana anticipates its lowest annual production in two decades as a result of strikes, heavy rains and operational problems. All together, 500,000 tons (454,000 metric tons) of raw cane remain uncut at the country’s eight sugar estates.

State-owned Guyana Sugar Corporation will likely produce no more than 218,000 tons (198,000 metric tons) this year, well below the 280,000-ton (254,000-metric ton) target set at the beginning of the year, chief executive Paul Bhim said recently.

He said heavy rains and a lean staff will make it hard to reach even 230,000 tons (209,000 metric tons) by year-end. He said that 420,000 tons (381,000 metric tons) of unharvested sugarcane will likely be carried over into next year.

More than 20,000 workers went on strike last month to demand pay raises, which Guysuco said it could not afford. The Guyana Agricultural and General Workers Union staged a one-day walkout in October for similar reasons.

The union also has asked the government to temporarily shut down a US$200 million Chinese-built sugar mill so it could repair mechanical defects.

Guyana has previously penalised the state-owned China National Technical Import and Export Corporation for the problems.

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