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  • Cane fires no longer a serious problem at Frome

    Cane fires no longer a serious problem at Frome

    Tuesday, July 27, 2010

    var addthis_pub="jamaicaobserver";


    FOR decades the burning of cane fields, especially at Frome in Westmoreland, proved a choking problem for the local sugar industry, with repeated reports of numerous cane fires at reaping time.
    But according to CEO of the Sugar Corporation Holdings Limited, Aubyn Hill the burning problem has now been solved.

    "When we [divestment team] came we had thousands of fires at Frome," Hill told reporters and editors at the Observer's weekly Monday Exchange meeting held yesterday at the newspaper's Beechwood Avenue head office in Kingston.
    "You go and check how many fires we have this year. Maybe 1/20 of the amount last year," he said.
    According to Hill, farmers, facing a recurring back-up in purchasing cane at the factory, had resorted to burning fields to speed up the buying process.
    He said that most of the fires occurred in Westmoreland where farmers depended primarily on sugar cane for income.
    "If you don't get your cane to make sugar, cane does not help you," said Hill, adding that his information was gathered after speaking with people involved "on the ground".
    He argued that farmers routinely lit cane fires in the region in order to receive preference from the Frome factory because burnt cane had to be reaped within 24 to 48 hours.
    The delay in purchasing cane, and the resulting fires, Hill charged, was spawned by the inefficient operation of the Westmoreland factory, which has a capacity of approximately 100 tonnes of sugar.
    "When the factory is inefficient and not on time, and breaking down frequently you have a queuing problem," said Hill. "In order to get in the queue you burn your cane."
    He said that in 2009 he made it "absolutely clear" that the factory would start on time and made every effort to secure all the parts required for sustained operation.
    Two weeks ago Chinese company Complan entered a deal with the Jamaican Government to purchase the Frome, Monymusk factory in Clarendon and St Catherine's Bernard Lodge sugar factory. The Chinese company is expected to take control of the three factories next year after sugar supply deals with international company Tate & Lyle and Italy's Eridana are completed.
    • Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.

  • #2
    Big role for cane farmers in Chinese-run operations
    BY PATRICK FOSTER Observer writer fosterp@jamaicaobserver.com
    Tuesday, July 27, 2010

    var addthis_pub="jamaicaobserver";


    CEO Sugar Corporation of Jamaica Holdings Limited Aubyn Hill yesterday assured private sugarcane growers that they have nothing to fear about Government's deal with the Chinese to substantially increase the acreage of cane lands across the island.
    Instead they will be required to play an important role when the Chinese take control of the recently divested sugar entities.

    The Chinese company, Complan, is expected to put into production approximately 50,000 acres of additional SCJ cane lands left idle for decades because of Government's inability to adequately finance the industry.
    Hill, who was guest at yesterday's Monday Exchange meeting of reporters and editors at the Observer's Beechwood Avenue headquarters, said that a $170 million cane expansion programme was established to assist the independent cane growers.
    According to Hill, the SCJ has committed $80 million, and the agriculture ministry a further $90 million for cane growers, in an expansion programme that should allow them to keep pace with the requirement of the new owners of the sugar estates.
    "The independent farmers are an important part of the mix," said Hill. "We cannot get away from that," he added, saying that the farmers were excited about the prospects going forward.
    Independent sugarcane growers currently supply on average 45 per cent of the total amount of cane bought annually by the sugar factories.
    However, with the projected greater demand from the Chinese and increased canefields under their control, independent farmers, at present production rates, could be hardpressed to deliver.
    "That percentage could change, it depends on the capacity of the [independent] farmers," Sugar Industry Authority chairman, Derick Heaven said in an interview with the Observer after the Monday Exchange meeting.
    Heaven said that the Chinese would try to get as much throughput as possible from the lands under their control, but hinted that the factories would also encourage independent farmers to increase acreage and productivity. "We hope they [farmers] can be motivated," said Heaven.
    Two weeks ago Agriculture Minister Christopher Tufton announced that Complan, purchaser of the Monymusk, Bernard Lodge and Frome estates, would be leasing additional lands to increase the acreage of sugar cane needed to profitably feed the factories.
    President of the All Island Jamaica Cane Farmers Association (AIJCRA) Allan Rickards, while agreeing with the move to help his members, told the Observer yesterday that he was unaware of the amount of funds to which the SCJ chairman referred.
    "Government budgeted $200 million as part of the cane expansion for everybody growing cane. Sixty million dollars of that is for irrigation," said Rickards. "That is what is funding cane expansion programme," he said.
    Rickards, however, admitted that cane farmers would now have to step up their productivity as well as acreage to keep apace with the expected demands of the Chinese.
    "We intend to step up to the plate and increase production from the existing lands that we farm," he said.
    According to the AIJCFA president, farmers became disinterested in cane production after recurring problems with the haphazard throughput of factories in the past.
    "In areas where the factories did not start on time there was a lack of incentive for farmers to plant," said Rickards.
    He added funding was always a problem, but with the projected increase in production, private farmers were now eyeing the possibility of acquiring SCJ land with the intent to keep their 45 per cent average.
    "We expect to keep that ratio," Rickards said. "It is a secret ambition of ours to get more of the factory land,' he added.


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    • Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.

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    • #3
      Backward banks
      Aubyn Hill knocks risk-free mentality that is holding back production
      BY JULIAN RICHARDSON Assistant business coordinator richardsonj@jamaicaobserver.com
      Tuesday, July 27, 2010

      var addthis_pub="jamaicaobserver";


      AUBYN Hill, a former senior banking executive, has accused local bankers of holding on to their risk-free mindset to the detriment of the productive sector.
      Hill, who is now CEO of the Sugar Corporation of Jamaica Holdings Limited -- the entity mandated by Government to manage the state-owned sugar factories -- made the observation yesterday while addressing Observer reporters and editors at their weekly Monday Exchange at the newspaper's head office in Kingston.

      Aubyn Hill, CEO of the Sugar Corporation of Jamaica Holdings Limited, addresses yesterday’s Observer Monday Exchange at the newspaper’s head office in Kingston. (Photo: Naphtali Junior)
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      Aubyn Hill, CEO of the Sugar Corporation of Jamaica Holdings Limited, addresses yesterday’s Observer Monday Exchange at the newspaper’s head office in Kingston. (Photo: Naphtali Junior)


      1/1

      He noted that local cane farmers, for example, were in urgent need of financing to replenish their stock but were unable to access loans from banks.
      "I have been trying to lead the banks to finance this operation based on the money that we pay for sugar and the banks have absolutely...no clue," argued Hill.
      "I've talked to bankers that I know and they are still in a time warp about sugar because they have been so focused on non-agriculture, non-productive things for so long, like government paper," he said.
      The former head of National Commercial Bank (NCB), however, owned up to the fact that he was also a major player in the financial sector's risk-free investment culture when he was in banking. Hill spent two years at NCB, to which he was recruited by billionaire owner Michael Lee Chin in 2002 to turn around the then fledgling institution.
      "I shouldn't say 'they', it was 'we' because I was there; I ran the bank, it was profitable, it made sense; why should I take the risk?" acknowledged Hill, who in two years transformed NCB into a group whose profits ballooned into the billions of dollars.
      But he noted that the implementation of the Jamaica Debt Exchange (JDX), which saw the Government exchange its high-interest bearing instruments for those with lower yields and longer maturities, will force bankers to diversify into different areas, which may include the productive sector.
      "The JDX has brought many benefits to the country in terms of low interest rates and one of the greatest benefits is that it's forcing bankers to look at operating businesses," he said.
      Hill said some $170 million has been made available to farmers between the SCJ, Sugar Industry Authority and the Ministry of Agriculture, but said this was still not enough to meet demand.
      "The farmers are very excited about planting cane but I can tell you that they need more financing," he said.
      • Don't let negative things break you, instead let it be your strength, your reason for growth. Life is for living and I won't spend my life feeling cheated and downtrodden.

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