DATE: May 28, 2018
Directors Members
Mr. L.PARRIS BARBADOS AGRICULTURAL MANAGEMENT CO.
Mr. M. MCLACHLAN BELIZE SUGAR INDUSTRIES LIMITED
DR. H. DAVIS GUYANA SUGAR CORPORATION INC.
Mr. R.K. JAMES SUGAR MANUFACTURING CORPORATION OF JAMAICA LTD.
170th Meeting of the Board of Directors – 22 May, 2018, Belize
Members of the Sugar Association of the Caribbean (SAC) met on 22 May, 2019 in Belize, for their 170th Board of Directors Meeting.
SAC Directors met in Belize City on 22 May to discuss the future of regional sugar supply. A year and a half after changes removed market preferences for CARICOM sugar in Europe; SAC is still looking for solutions within its own regional market. Sugar industries across the region are investing hundreds of millions of dollars to match quality and supply to regional demand.
Presently, more than two-thirds of sugar consumed in CARICOM comes from extra-regional sources, duty free, displacing market opportunity for over 200 thousand Metric Tons of CARICOM sugar, which is forced onto the low value global market. Policy changes, therefore, are required to secure the integration of the sugar market within the CARICOM Single Market & Economy (CSME). A failure to achieve this threatens a major agricultural sector of the region’s economy, hundreds of thousands of Caribbean jobs and questions the effectiveness of the single market in meeting its stated objectives.
CARICOM industries investments are set to deliver to market nearly 300 thousand Metric Tons of food-grade sugar within the next 18 months, matching the region’s demand. According to SAC Chairman, R. Karl James, “SAC Directors are squarely focused on how regional integration can benefit industrial users and consumers of sugar through competitive longer-term pricing strategies, which are not directly impacted by cyclical global sugar price surges.” James continued, “Utilisation of our sugar in most of our products would reduce this risk alongside the processing and import costs associated with importing sugar from outside the region. This would bring CARICOM in line with other regional sugar markets.”
The process now requires further discussion between sugar producers and users to find a pathway to achieve this mutually beneficial outcome. This is set to take place in the coming months. A part of the solution must be the correct implementation of the existing Treaty processes, in particular for brown sugar, which has seen a marked erosion of value in recent months. SAC members continue to dialogue with their respective governments, sugar users and the CARICOM Secretariat to find solutions.
CARICOM Market
Over the next 12-18 months, SAC industries would have the capacity to supply the Regional market with 280,000 tonnes of direct consumption and plantation white sugar. Investments are currently taking place to increase capacity. Additional lands are being brought into cane production that would increase sugar production. In one country, storage and shipping has increased to accommodate larger vessels of up to 30,000 metric tons.
Regional Sugar Production 2018/19
SAC members are projected to produce around 450 thousand metric tons of sugar this year.
European Union Market
To date the Region has exported 133, 000 tonnes of sugar to the EU market at global market prices. Extra regional duty free imports are being dumped into the CARICOM market at less than half the value they achieve in their home markets.
US Market
Industries will ship all of the quotas allocated by the US (43,175 ton) under the TRQ, representing less than 10 percent of production. At a recent meeting, industries requested and are expected to receive additional quotas for this 2018/19 marketing year.
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For further information, see our website: www.caribbean-sugar.org
Or please contact:
R. Karl James
Chairman, SAC
t + 876 929-6213
m + 876 371-2637
Email. karljam@gmail.com
William A. Neal
Government Affairs and Communications Officer,
Belize Sugar Industries Limited
t +501 322-2150
m +501 610-9774
Email. william.neal@asr-group.com