Sugar Transformation Unit Ministry of Agriculture & Fisheries
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1 Sugar Transformation Unit Ministry of Agriculture & Fisheries GOJ s Sugar Adaptation Strategy : 2006 to 2020 George Sugar Cane: Energy for Life God is Great
2 To Participants of the globalization, climate change & rural resilience conference: GREETINGS
3 A Thought! It is impossible to win, unless you begin. Dr. Robert Anthony
4 Contents Background Challenges to Jamaica s Sugar Sector GOJ s Response to Challenges Achievements Next Critical Actions
5 Background Sugar Cane Sector in Jamaica Let us take a look!
6 Background : The contribution of the sugar sector to Jamaica s economy: Foreign exchange earnings: US $90 M, - 6% of value of total exports & 51.7% of agricultural exports Employment: Direct: 38,000 persons in 32 political constituencies; is 18% of total employment in Agriculture & 4% of active labor force in Jamaica Indirect: 100,000 persons, including 9,600 independent cane farmers
7 The Sugar Cane Sector: Sugar cane produced in Jamaica for over 300 years: Currently: - 7 sugar estates, including:. Frome, Monymusk, Bernard Lodge, Everglades Farms, Golden Grove Sugar, Appleton, Worthy Park
8 Background: The Sugar Sector in Jamaica Ownership structure: Private sector (100 %): Appleton, Worthy Park, Golden Grove Sugar, Everglades Farms, Pan-Caribbean Sugar 0 Government (0 %):
9 Background: Total cane production in 7 Estates: Y2010/11: 1.52 M tonnes Estimated: 912,000 tonnes 60 % of total output 9000 Cane Farmers (Outgrowers): Estimated: 608,000 tonnes 40 % of total output
10 Sugar Cane Sector: Institutional structure Sugar Industry Authority (SIA): Regulatory body - Jamaica Cane Products Sales Ltd: Sales & marketing - Sugar Industry Research Institute (SIRI): Research & Dev. AIJCFA: Cane Farmers SMCJ LTD: Sugar Manufacturers BITU;NWU; UAWU: Workers
11 World sugar prices, US cents/pound January 2009: March 2012: Source: New York Board of Trade
12 Challenges to sugar: Year 2012 Expand cane output : 3.5 M T ASAP; Increase yield: Min 80.0 Tc/Ha; Contain costs: At about J$ (US $ 23.0) per tonne cane!
13 GOJ s Response to challenges : GOJ s Sugar Adaptation Strategy Take a look!
14 Phase III: 2015/ /20 (Consolidation) GOJ s Sugar Adaptation Strategy A Road Map to the development of a sustainable private sector-led sugar cane industry by Year 2020: Phase I: 2006/7-2009/10 (Transition) :Completed Phase II: 2010/ /15 (Transformation) : Commencing FY 2011/12
15 The JCS - Phase II: 2010 to 2015 Phase II - Transformation Year: 2010/ /15 Let us take a look!
16 The JCS - Phase II: 2010 to 2015 Transformation: Objective 1: Development of a commercially viable sugar cane sector
17 Next Actions : SADP 2: Component 1: Strengthening Commercial Competitiveness of the Sugar Cane Sector: The emphasis is on the Cane Farming Sub-Sector
18 SADP 2: Component 1: Total Component 1: Strengthening Commercial Competitiveness (Sugar Cane Sector) J$ 4,768.0 Billion over 4 years
19 Target : cane production Cane production in crop year 2010/11: 1.52 M tonnes Minimum annual output of cane required: 2015/ M tonnes
20 Opportunities : Farmers production Current Production Indicators: From Farmers: 0.6 M T from about 12,000 Ha: Yield is: 50.0 Tc/Ha; Operational Plan: 1.4 M T Need Total : 20,000 Ha; Yield : 70.0 Tc/Ha; Investment required: Total: J$4.0 B; Of which; J$3.0 B from CXF, and J$1.0 B from farmers equity.
21 The JCS Transformation Phase Objective 2: Sugar Dependent Area (SDA) Development
22 SADP 2: Component 2: Total Component 2 : Socio-Economic Development of Sugar Dependent Areas : J$ 3,746.0 Billion over 4 years
23 SDA Development : Expected results: Include: dynamic and sustainable economic growth in SDA communities; widespread access within the SDAs to improved social and community services.
24 The JCS - Phase II (Transformation) Objective 3: Creation of an enabling policy environment for the development of the sugar cane sector.
25 Achievements: Objective 1: Development of a sustainable private sector-led sugar cane industry.
26 Achievements: Divestment Ownership structure: Government (71 %): Frome, Monymusk, Bernard Lodge, Trelawny & St. Thomas sugar estates 2 Private (29 %): Worthy Park estate Appleton estate Ownership structure: Private sector (100 %): Appleton, Worthy Park, Golden Grove Sugar, Everglades Farms, Complant. 0 Government (0 %):
27 Achievements : Sugar Industry Enquiry Commission Reviewed the regulatory, pricing and marketing arrangements in the sugar cane sector ; Cabinet-approved recommendations now being implemented.
28 Achievements: Establish Cane Expansion Fund To provide additional funding to the sugar cane industry for increased cane production through sustainable increases in productivity and efficiency. J$ 1.1 B injected by MOAF & over 4,500 Ha of cane replanted.
29 Achievements: Objective 2 : Mitigate the economic, social and environmental fall-out from restructuring sugar sector.
30 Achievements: Access to basic health, educational and recreational services for over 4,800 displaced sugar workers and their families maintained; Clinics, Schools, Sugar Barracks
31 Achievements: Over 5,000 grants disbursed to vulnerable sugar workers & small cane farmers under the SADP; Over 600 workers trained.
32 Next Critical Actions : A few! Support increased cane production to 3.5 M tonnes ASAP; Increase cane yields to Min Tc/Ha ASAP; Improve cane roads to support efficient harvesting of cane; Improve social, economic and environmental infrastructure in SDAs to strengthen rural resilience.
33 End! It is hard to fail, but it is worse never to have tried to succeed. Theodore Roosevelt God is Great
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