UPDATED: Still no takers for Monymusk, gov't to spend millions to transport sugar cane

The Government is to provide at least $152 million towards the transportation of sugar cane from the Monymusk and Bernard Lodge areas for processing at the Appleton sugar factory in St Elizabeth and the Worthy Park sugar factories in St Elizabeth.

Noting that a total of 105,000 tonnes of sugar cane are to be transported, the Agriculture Ministry says the move is to secure the livelihoods of the 250 farmers whose well-being would otherwise be at risk.

In addition to the transportation, Agriculture Minister Audley Shaw says the Government will be providing some assistance to the workers of the Monymusk who will be affected by the temporary closure of the factory.

“With the 2018-2019 crop season now under way and despite the best efforts of the Ministry and current factory owners, Pan Caribbean Ltd, there was no success in identifying a suitable investor to repair and operate the Monymusk factory for the current crop,” Shaw said in a statement today.

Full Statement

The Ministry of Industry, Commerce, Agriculture and Fisheries wishes to advise that following deliberations of Monday, January 14, 2019, Cabinet has approved the  provision of  transport support for up to 105,000 tonnes of sugar cane from the Monymusk and Bernard Lodge areas for processing at  the Appleton and Worthy Park sugar factories in St Elizabeth and St Catherine, respectively.

Help for farmers

This option was determined to be the best of five options presented for assessment to ensure the harvesting of the current crop and, most of all, to secure the livelihoods of the 250 farmers whose well-being would otherwise be at risk.

The Minister of Industry, Commerce, Agriculture and Fisheries Audley Shaw has also announced that in addition to the transportation of the cane to these factories, the Government will be providing some assistance to the workers of the Monymusk Sugar Factory who will be affected by the temporary closure of the factory.

With the 2018-2019 crop season now under way and despite the best efforts of the Ministry and current factory owners, Pan Caribbean Ltd, there was no success in identifying a suitable investor to repair and operate the Monymusk factory for the current crop.

At this point, it is unlikely that repairs to the factory to facilitate processing could be completed before the end of April.

Solutions

In addition, preliminary estimates by the Ministry indicate that the rehabilitation and operation would require the intervention and management by the SCJ Holdings and expenditure of approximately $600 to 800 million, neither of which is feasible at this time.

The approved option for transportation support, on the other hand, is projected to cost between $152 million and $194 million, to be funded by MICAF, SCJ Holdings Ltd and the Sugar Industry Authority.

In addition to the approved short-term solution, the Ministry wishes to note that it is also in receipt of proposals for longer-term solutions for the rehabilitation and operation of the Monymusk factory.

Proposals submitted by prospective private-sector investors include offers to purchase the sugar factory and to diversify the cane industry to include ethanol and other value-added products.

Commitment 

The Ministry wishes to reiterate its commitment to work with all stakeholders to achieve the best outcomes for a sugar industry faced with many challenges and has been engaged in constant dialogue with industry players in pursuit of solutions for both the medium to long term and for the short term.

The current situation at Monymusk is an indication of the extent of the challenges now being faced by the sugar industry - perhaps the most challenging period in the industry’s history.

The Ministry is prepared to continue to partner with industry stakeholders and to guide the process through the current period of transition and therefore appeals to all involved to be resolute in the commitment to overcome the challenges to secure the future of the sugar cane industry through sustainable investment and product diversification.

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