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– estate required alarming 26 tonnes cane to produce 1 tonne sugarDespite passing its targets for the first time in almost a decade, the year 2014 has ended with the flagshipGuySuCo’s CEO,Dr. Raj SinghSkeldon sugar factory again,Mike Mitchell Steelers Jersey UK, recording one of the worst performances of all the four Berbice estates.Skeldon, the newest factory in the country which was only commissioned in 2009,Aaron Rodgers Packers Jersey UK, fell behind the target by 5,449 tonnes, closing with 21,Franco Harris Steelers Jersey UK,813 tonnes for the second crop.According to figures provided, the factory also for the second crop, required an alarming 26.9 tonnes of cane to produce one tonne of sugar,Jack Lambert Steelers Jersey UK, more than double the industry average which stood at 12.9 tonnes of cane to one tonne of sugar.Albion was the estate with the highest production surpassing the target of 33,LaDarius Gunter Packers Jersey UK,516 tonnes by some 681 tonnes.Even Rose Hall did better, recording 22,214 tonnes, or 808 tonnes above the target set for this last crop of the year. Blairmont also surpassed its target of 20,560 tonnes, ending the crop with 22,723 tonnes.In Demerara, Enmore beat out Wales and Uitvlugt, recording 108 tonnes more than the targeted 16,524.The most efficient of all the estates was Blairmont requiring 12.9 tonnes of sugar to produce one tonne of cane.At the beginning of the year, the Guyana Sugar Corporation had set a 216,000 tonne target, but at half year with things looking better, forecast a 219,000 tonnes production at the end of December. It fell short of that adjusted target by 2,858 tonnes.GuySuCo will be looking at the figures,James White Patriots Jersey UK, keenly, because while the first crop ended on high 79,995 tonnes, theAgri Minister,Andre Tippett Patriots Jersey UK,Dr. Leslie Ramsammysecond crop fell short of the targeted 139,050 tonnes, by just over 2,900 tonnes.EmbarrassmentThe Skeldon situation has continued to be an embarrassment for the continuous administrations of the ruling party. The US$200M project, which included the factory and expansion of canefields, has been hailed as a saviour for the industry.However, the Chinese-built factory has been a drag on the entire industry, with costs of production way above that of the other six estates in Berbice and Demerara.Former President Bharrat Jagdeo had vowed to personally see that Skeldon’s fortunes turn around, but there has been silence in his corner for one of his babies.Among some of the biggest problems for the new factory is the punt dumper which takes the cane into the factory. It has been faulty from the start, despite over $1B spent by Government to fix that and some other issues.Another problem is that the capacity of factory requires lots of canes, something that cannot be supplied at the moment. For hours on end, workers say, the factory would stand idle waiting on cane, an intolerable situation.Government has been coming under fire by the Opposition as GuySuCo has been operating at a loss for several years now, using precious taxpayers’ dollars to prop the ailing industry up.GuySuCo has sued the former supervisor of the Skeldon project, Booker Tate, for US$30M, because of the problems.Former President Bharrat JagdeoThe debts for the industry have also been mounting.In July, GuySuCo officials appeared before the Parliamentary Sectoral Committee, to report that it has $58B in debts.This includes money to local and foreign suppliers, the Guyana Revenue Authority,Eddie Lacy Packers Jersey UK, the National Insurance Scheme (NIS) and the Sugar Industry Labour Welfare Fund Committee (SILWFC).In recent months, GuySuCo reportedly took almost $4B in loans from a Jamaican bank to finance expenses for its second crop.In terms of local debts, GuySuCo reportedly has been granted a moratorium on its commitments for payments to the National Insurance Scheme to the tune of $1B.Over $20B (US$100M) is owed for the new Skeldon Sugar Factory to the World Bank, China EXIM Bank and Caribbean Development Bank.Earlier this month, the Caribbean Development Bank said it has approved $1.5B loan to enhance the capacity of GuySuCo to produce and harvest sugar cane on selected estates.Between last year and now, Parliament approved US$50M but GuySuCo now wants another US$30M to help the industry.High CostsAn aerial view of Skeldon factory, East Berbice.The price for sugar and the cost for production have also made GuySuCo’s situation even more alarming.While last year, GuySuCo was getting US$715 per tonne, a glut in the market caused prices to tumble to now US$350.The entity reportedly failed to enter into a three-year agreement to lock in the high prices and instead opted for a one year contract.It is now paying the price because of the short-sightedness of GuySuCo officials, one union official said this week.In terms of cost of production, it is also clear that unrealistic US$0.35 per pound in which sugar is being produce could not compete on the market. GuySuCo is actually selling for an average US$0.25 per pound, meaning that it was losing big time. In other words the industry, because of efficiency, remains unsustainable in the current situation.To realistically compete with the rest of the world, Guyana must bring down its production costs to below US$0.20 per pound. GuySuCo’s officials has asked Opposition Parliamentarians for patience, saying that Guyana will have to wait until 2017, as part of its strategy to turn the fortunes of the industry around, to bring production prices to about US$0.27 per pound. That would still not be enough.Industry experts have forecasted that sugar prices will remain depressed for some time as neighbouring Brazil and Thailand have increased their output, helping to flood the world market. GuySuCo itself has said that there is glut in the world market of almost two million tonnes. This has driven prices down.The Skeldon expansion project is the most expensive project to date in Guyana.The industry is facing technical problems, poor prices and low workers’ turnout with production plunging to a 23-year low in 2013 to 187,000 tonnes.It is also the biggest single employer with over 16,Ty Montgomery Packers Jersey UK,000 employees.