Efforts on to transform sugar industry

Based on current projections, the state-owned Barbados Agricultural Management Company (BAMC) is expected to become profitable by the year 2025.

Moreover, if a recommendation that is expected to be made to Cabinet is approved, the BAMC will transition to become a new entity called the Barbados Energy and Sugar Company (BESCO). According to Minister of Agriculture and Food Security, Indar Weir, shares of this company, which would take over the running of the sugar cane industry, would be made available to ordinary Barbadians and the private sector to purchase, thereby reducing the Government’s commercial footprint.

He offered this explanation to The Barbados Advocate yesterday, following a brief ceremony at the BAMC, during which they received a donation of a new sugarcane harvester from the Chinese firm Zoomlion Heavy Industry Science and Technology Company Limited. The occasion also marked the signing of a Memorandum of Understanding on agricultural co-operation between Barbados and China.

During the ceremony, Minister Weir told those gathered and those joining via video conference from Hunan Province, China, that the harvester has come at a “very critical stage” in this country’s economic transformation, as efforts are ongoing to strategically transform the sugar industry.

“The sugar industry in Barbados, as you know it, has been for many years operating at a substantial loss to the Government. Government subsidies have continued to increase, whilst we try to grapple with the changes that are necessary to transform the sugar industry. The sugar industry in Barbados can no longer go on as a bulk producer for sugar that is exported at substantial losses to the BAMC.

To that extent, the Government is moving to transition the industry from one of bulk sugar production to a value chain industry,” he stated.

He went on to say that going forward, the industry will no longer be producing bulk sugar for export, and has already started the process of transformation, by producing sugar for domestic consumption and sugar for export for direct consumption in the international markets. Weir added that they are also focused on the production of molasses for the local rum industry, and will also be seeking to take advantage of the opportunities that are available in renewable energy.

“The by-products of the factory will also be used to produce fertilisers, giving the industry for the first time in its history, an opportunity for value chain development, right through the entire value chain system. Barbados is now poised to transform the sugar industry into a sugar cane industry,” he said.

Minister Weir said that this transformation is expected to result in the BAMC earning more for sugar and molasses, while they also focus on value chain development and embracing renewable energy. (JRT)