Barbados has an opportunity to attract investment in refined or white sugar production to meet strong regional demand, with producers in Belize offering technical support to help develop the industry, top regional industry figures said on Thursday.
The extent of the domestic industry’s interest in producing refined sugar, the preferred product in beverage industries and bakeries, could not be immediately ascertained as the region’s sugar producers met here.
Mac McLachlan – Chairman of the Sugar Association of the Caribbean. (Photo by: Emmanuel Joseph)
Mac McLachlan, chairman of the Sugar Association of the Caribbean (SAC), said investors were already eager to invest in white sugar production in the Caribbean, historically renowned for brown or Demerara sugar.
The Belizean sugar-maker, which has begun producing refined sugar, said it was ready to provide technical assistance to improve Barbados’s industry.
At the 178th meeting of SAC’s board of directors at the Radisson Aquatica Resort, McLachlan told reporters that Belize was already benefiting from an investment in white sugar production.
He said: “I think there is great incentive for all sugar-producing countries to improve their added value offer in the region. And that’s because the region does actually protect its sugar through the Treaty of Chaguaramas and the Common External Tariff (CET).
“That’s been the driver for the investment that’s been taking place in Belize in a refinery to produce refined white sugar to a very high quality. It may be that others will follow suit in time, but there is a great demand in the CARICOM region for white and brown sugar.
“There is a lot more opportunity now for investment opportunities that could lead to realistic, profitable, viable outcomes for each of the sugar producing countries that are still here.”
The SAC expected more people to be prepared to use low-quality brown and white sugar as the market adjusted to the new dynamics that would emerge at the end of this year, McLachlan said.
“This means that for the first time in generations, CARICOM sugar market demand will be met from regionally-produced products. This reverses years when CARICOM sugar was exported as a raw product for refining in the EU and elsewhere, losing the added value of the product to those markets. While supporting community objectives of increasing regional food and energy security, this development will act as a catalyst for further investment in regional sugar industries, continued support for the livelihoods of many, many Caribbean citizens and a more stable foundation for industry viability and growth.”
The English-speaking Caribbean’s four sugar-manufacturing countries said they were committed to remaining in the industry and increasing productivity and value. He said Belize had invested US$500m (BDS$1bn) over the past decade to improve production.
Molasses is also an “incredibly” important by-product of sugar, especially for rum producers such as Barbados, one of the largest in the hemisphere, he said.
“The fact that there are other by-products as well… green energy, electricity, carbon reduction through plant life and activity, are all good indicators of why it’s a good idea to invest in sugar to ensure we keep moving forward and producing what the region needs.”
Dan Gutierez – Consultant – Caribbean Sugar Refineries of Belize. (Photo by: Emmanuel Joseph)
Dan Gutierez, a consultant with Caribbean Sugar Refineries of Belize, said the company, which had already started producing refined white sugar, was ready to provide technical assistance to Barbados to improve its industry.
Gutierez said the available expertise ranged from white sugar production to milling and farming.
He said: “Belize Sugar Industries, Santander Sugar and Caribbean Sugar Refineries have made available our expertise to the industry in Barbados and to work with them, because we understand there is some ambience where not only Belize, but… Barbados, Guyana and Jamaica, we all need to improve our sugar industries, and we stand ready to assist wherever we can.”
McLachlan said the SAC, which had been assisting the co-operative Barbados Energy and Sugar Company (BESCO), to run the sugar industry would continue to do so: “As SAC and also as the Belize Sugar Industries, we have been supporting BESCO in Barbados with their development plans and their future strategies, looking at how we can transform the sugar industry here as we grow efficiency at a higher scale in order to make the industry viable, profitable moving forward.”
The SAC chairman explained that this included advising on mill efficiency, examining what happened in the cane fields to identify where improvements were needed, and providing general support.
“We are very happy with the relationship. I know the Prime Minister is very supportive, as is the Minister of Agriculture for the sugar business here. So, we are very pleased to be part of the process to look at the strategic direction of the industry.”
Turning to the flow of sugar into the region, McLachlan said his association had been holding talks with the CARICOM Council for Trade and Economic Development (COTED), the bloc’s trade ministers, on a mechanism to monitor it.
“Over this period, SAC has actively participated in COTED discussions regarding a monitoring mechanism for sugar, which continues to be a challenge. When that is functioning properly, it will act as a mechanism to record sugar flows into the region, but equally, sugar production in the region and the two will be able to match each other. And whatever further investments are needed will take place in order to manage that process.”
(EJ)
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