Changes coming for sugar cane sector

Barbados has exported its last shipment of bulk sugar, and from this year’s crop, the focus will be on direct consumption sugar.

That’s according to Minister of Agriculture and Food Security, Indar Weir, who said that shipment sailed out from the Bridgetown Port around November last year.

He explained to The Barbados Advocate that with the transition from bulk to direct consumption sugar, there is the potential to make the industry considerably more profitable than it has been in recent years.

“We were exporting sugar at $900 a tonne; we are now exporting sugar for direct consumption. Grade ‘A’ sugar is now being sold at twice the price of bulk sugar per tonne, and Grade ‘B’ sugar at 44 per cent higher per tonne. So both ways we are making more money through direct consumption than when we were exporting in bulk,” he stated.

The Minister continued, “What this does is give us an opportunity to be able to package our sugar ourselves and then create the kind of marketing initiatives that would be required to sell Barbados as a brand, to tell the Barbados story where sugar is concerned – and we have a rich history.”

Weir made the comments while revealing that there has already been an increase in direct consumption sugar production and the Barbados Agricultural Management Company Ltd. will be supplying 100 per cent of the domestic market in 2021. He further stated that the approach being taken is a holistic one, as the intention is also to increase production of molasses for the local rum industry.

“We have been able to sell our molasses to the local rum industry and again we have been able to get a higher price for our molasses than we were getting in the past. We will be producing molasses strictly for the rum industry and we are going to increase production of molasses, and because we are going to be using sugar for domestic consumption and direct consumption, we will be able to produce more molasses and reduce the amount of sugar we are producing, because we are not doing bulk anymore so we will produce based on consumption and market opportunities, and not based on bulk sugar that has to be shipped out at a cost that is way below the cost of production,” the minister stated.

He spoke to this while indicating that plans remain in train to establish a new state-of-the-art multipurpose factory, adding that steps will also be taken to increase crop production.

“Having said all of that, we are still producing at a higher price than we ought to be and we are working to reduce our field costs. That’s why I want to go to a multipurpose factory, so that we can expand revenue streams and deliver products demanded by the market and rum producers, including molasses and raw juice. We will also put in the museum that has been spoken about, as part of the development of the new factory. It will be created as a tourist attraction, where visitors will be told the story of our sugar industry and rum, and take tours of the factory,” he indicated.

Minister Weir disclosed that the project will be driven by both the Government and the private sector. He explained that the sugar cane farmers will be given the first option to hold shares within the entity, and they will look to both private sector investment and other key stakeholders, including Barbadian labourers who would have toiled in the fields, to give them an opportunity to buy shares as well.

Weir added that the Andrews Sugar Factory will definitely not be the site of that refurbished facility, but stated no decision has been made as yet as to whether it will be Portvale or Bulkeley. He said that a decision will be made once the Cabinet Paper for the business plan is submitted to Cabinet for approval. (JRT)