The tonnes cane per tonne sugar ratio of 10.85 is a significant improvement over the previous
year’s ratio of 11.64. The improvement in this statistic is explained by better quality canes and
improved extraction rate by the factories.
Performances, measured by Factory Recovery Index (FRI) and the Jamaica Recoverable Cane
Sugar (JRCS), continued to show mixed results. Average FRI declined from 90.42 in 2002/03 to
87.31 in 2003/04 while average JRCS improved from 9.57 to 10.63 during the same period. Two
factories, Appleton and Worthy Park, surpassed the standard FRI of 91.00 units with
performances of 93.13 and 96.08 units respectively. All the other factories, except Bernard
Lodge (88.48 units), were in the low eighties. All factories, except St. Thomas, which
maintained the previous year’s performance, improved their JRCS performances in 2003/04
(Tables 3 & 4).
The price paid to growers and millers for the 2003/04 was the highest in recent times. They were
paid $31,387 per tonne sugar, an increase of 13 % over the $27,787 paid in 2002/03. This level
of payment was made possible because of increased earnings from the export of sugar to the
European Union resulting from the continued strengthening of the euro in which sales of our
sugar are denominated. The division of the payment between cane growers and manufacturers
according to the split of 62% to growers and 38% to manufacturers was as follows:
(62%) $17,228.00 $19,460.00
Sugar Manufacturers (38%)
The actual grinding time for all factories was 61.09 per cent of total available time which
represents an improvement of 22.9 per cent over the 49.69 per cent achieved in 2002/03. This
improvement, which is still below acceptable levels, is mostly explained by a 44 per cent
reduction in non-factory stoppages from 31.70 per cent of total available time in 2002/03 to
17.76 per cent for the 2003/04 crop. Factory stoppages due to mechanical problems (9.88 per
cent of total available time) was the single largest factor contributing to time loss during the
crop. All factories except Trelawny Sugar Company surpassed the 50 per cent mark in actual
grinding time (Table 5).
The total (gross) value of sugar exports in 2003/04 was US$98,684,138 which was 32.7 per cent
above the value of US$74,379,855 in 2002/03. The volume of sugar exported was 159,908
tonnes, of which 136,005 tonnes of Protocol sugar went to the United Kingdom at a value of
US$86,109,920. The amount of 12,676 tonnes was shipped under the SPS arrangement at a
value of US$7,557,264. (Table 6).
The euro continued to strengthen vis-à-vis the US dollar in 2004 and this resulted in significantly
higher export earnings per tonne sugar sold to the United Kingdom. Earnings per tonne increased
from US$579.70 in 2002/03 to US$633.14 in 2003/04, while the earnings per tonne for Special
Preferential Sugar increased from US$548.09 per tonne to US$596.14 per tonne. The base price
of Î520.37 for protocol sugar remained the same.
LOCAL SALES OF RAW SUGAR
The amount of local raw sugar sold on the domestic market during the 2003/04 crop was 15,558
tonnes, compared with 17,908 tonnes in 2002/03. When sale of imported brown sugar was added
to the above, the comparative figures were 49,553 tonnes and 53,278 tonnes respectively. The
volume of locally produced raw sugar consumed within a crop year is dependent on the level of
domestic production because the first objective of the industry is to supply sugar to the
preferential markets. Thus, the volume of imported raw sugar increases in times of low
production. Although production in 2003/04 was higher than in 2002/03 it was not enough to
meet our export requirements and supply the domestic market.
During the period under review the Sugar Industry continued to focus attention on critical and
strategic areas of the industry. These include:
Markets: This area became urgent because of developments in our most important export
market, the European Union. The threat of drastic price reduction which was to be implemented
in 2005 spurred the SIA, in collaboration with other ACP countries, to pursue an intense
lobbying effort to avert the timing and extent of a proposed price reduction. The Executive
Chairman of the Sugar Industry Authority, Ambassador Derick Heaven, was one of the
negotiators at the forefront of the lobbying initiative which is proving to be quite successful.
Production Volume and Costs: The industry continues to implement programmes to increase
cane and sugar production and to reduce costs. These include:
¨a replanting programme designed to increase the productivity of existing canefields
and bring new fields into production
¨a factory upgrading programme with the objective of improving the extraction
efficiency of the sugar factories.
Diversification: During the period under review the industry continued to explore the
production of several products other than raw sugar from the sugar cane plant. It was agreed that
the industry should return to sugar refining and that cogeneration and the production of Ethanol
should be pursued.
SIA / SIRI. Summer Training Programme
The SIA/SIRI summer training programme included for the first time a number of
Agricultural Courses in addition to the usual complement of Factory Courses. The
programme commenced on August 9, 2004 and was completed on August 25, 2004. Four
(4) agricultural and five (5) factory courses were held. A breakdown of the courses with participants is shown below:
Factory Courses No. of Participants
Arc Welding 7
Pump Installation & Maintenance 10
Supervisory Management 19
Laboratory Procedures & Practice 22
Machine Shop Practice, Stage 1 11
Farm Mechanization &
Sugar Cane Nutrition & Weed
Irrigation & Drainage
The courses were put on in
collaboration with UTECH and HEART institutions, Ebony Park Academy,
Portmore Academy and the National Tool & Engineering Institute (NTEI).
SIRI personnel along with specialists
from the Ministry of Agriculture instructed the participants attending
the agricultural courses. SIRI, UTECH and industry personnel instructed
the participants on the factory courses.
Both agricultural and factory courses
were well attended. All the estates participated in the factory courses
and all but Worthy Park took part in the agricultural courses. Ten Cane
Farmers and one contractor attended the agricultural courses.
Evaluation of the programme elicited favourable
responses from course participants. There was general agreement that
course content was very relevant to their areas of work and was
delivered at a pace which allowed for satisfactory interpretation and
assimilation. Subject areas were covered adequately, at the correct
level and contained a good mix of theory and practice.
Training in Raw Cane
Cane Quality: Assessment and Payment
Sugar Quality: Implications for
earnings and markets
Identifying and correcting sugar losses
during process operations
Identifying and correcting deficiencies
in sugar quality.
Forty-four staff members from the above factories participated.
Training seminars for core and factory laboratory staff were conducted at all factories.
The seminars addressed areas such as sample preparation, instrumentation, analysis of
juice, syrup, massecuite, sugar and bagasse samples. The importance of using the
approved methods of analysis, following stipulated procedures and the need to analyse
and interpret experimental data were highlighted.
C34 M Sugar Cane Processing Course
The sugar industry has for several years been one of the industries selected by the
University of the West Indies for detailed study. Consistent with this selection the
Department of Chemistry continues to include a course in Sugar Cane Processing within
the Applied Chemistry programme. The course is the joint effort of the UWI and
SIA/SIRI. It seeks to expose young chemists to industries in the island which are
chemistry - based. The course consists of lectures, tutorials and work-study. Mr. Ludlow
Brown of SIA is a part-time lecturer attached to the Chemistry Department which has
overall responsibility for the programme.
During the review period two students were selected to undertake projects in the sugar
industry. The projects involved comparative studies of methods for determining
polarization of molasses and the concentration of dextran in process solutions.
The students were instructed in the methods of chemical analysis involved at the Central
Laboratory, SIRI, Mandeville under the supervision of the Laboratory Manager, Dr.
Maureen Wilson and the studies were carried out at the Bernard Lodge factory.
SUGAR INDUSTRY RESEARCH INSTITUTE
The main objective of the Institute is the provision of technical support and research services to
the industry through its Agricultural, Factory and Central Services Divisions.
AGRICULTURAL SERVICES DIVISION
In 2004 the Sugar Industry Research Institute commenced work on a 3-year project, negotiated
between the Institute and the Common Fund for Commodities (CFC), an Agency of the United
Nations headquartered in Amsterdam. Valued at US$2.538 million, the project entitled
“Enhancing the viability and competitiveness of Caribbean Sugar Industries” is focused on
increasing productivity of farmers on small holdings. The CFC provides US $1.5 million in the
form of grant funds while Jamaica and Trinidad contribute the equivalent of US 1.038 in cash
and kind. Trinidad and Tobago are partners in the project, though organisational changes at
Caroni Ltd during the course of the year have delayed that country’s participation. SIRI is the
designated Project Executing Agency. Given the setbacks caused by hurricane Ivan, satisfactory
progress has been made to date and developments under the Project may be summarised as
Component 1. Establishment of seed cane nurseries
This component seeks to ensure availability of newly released commercial varieties to growers
across the industry and is the most advanced of the components to date. Some 46 ha of
secondary nurseries have been established on farmers’ holdings in various sections of the
industry. Primary seed stock supplied by the SIRI Experimental Farm at Springfield, Clarendon,
for the most part, was used to establish these nurseries. Towards the end of the year, seed cane
from these secondary nurseries was extended to tertiary nurseries being established across the
Component 2. Farmer participatory evaluation of varieties
This component, designed to have farmers themselves participate in assessing the merits of
newer varieties, uses primary seed cane generated by Component 1 and was implemented
towards the end of the year, with the establishment of two plots.
Component 3. Farmer participatory training in improved agronomic and management practices
Based largely on the establishment of demonstration plots across the industry, this component
seeks to ensure use of recommended practices by cane growers. Several plots were established at
various locations and training seminars held to bring farmers up to date with the latest
Component 4. Establishing and operating a pilot centre pivot irrigation scheme among
contiguous cane farming holdings
A contract was awarded for the establishment of a centre pivot irrigation scheme to benefit 18
contiguous cane farms, covering roughly 60.8 ha, in the Content area of Clarendon. Growers
were formed into a Water User Association that will manage the scheme to ensure continuity
beyond the end of the project. Assistance in the form of interest-free loans given to these
farmers for replanting or to upgrade cultivation, will be recovered and used to start a bank
account to be used exclusively to defray operating and maintenance costs associated with the
system. The bank account will be further augmented by a cess from cane sales by these growers
to ensure that future operation and maintenance charges may be met. Selected members of the
group are being trained to become operators of the system. By year end the centre pivot was
installed and awaiting electricity connection for testing. Commissioning is expected to take place
as soon as the existing crop is harvested and the site freed for installation of culverts and bridges
along the wheel tracks.
Component 5. Research and development into factors affecting yield decline
Crop rotation is being investigated as a technique to halt yield decline in sugar cane. High-valued Sea Island Cotton was the rotation crop planted at three locations (in Trelawny and
Clarendon). Unfortunately, the initial seeds supplied were of low viability and necessitated
heavy supplying. This was compounded by the hurricane in September. At one location the
cotton was eventually inter-cropped with peanuts to fill gaps. Scientific studies on the changes in
soil will be conducted. After a break of 1 or 2 years these plots will be returned to sugar cane and
the impact of crop rotation assessed in comparison with uninterrupted monoculture.
Component 6. Evaluation of Farm Modules Component 6. Evaluation of Farm Modules
Record keeping booklets have been produced and distributed to selected growers. Training
sessions in record keeping were then held among selected growers so that data could be gathered
to permit empirical measures of the relative efficiency of various farming systems.
In summary, this first phase of the CFC project was spent largely in
sensitising growers about
what the Project entailed, the benefits to be derived from it and what their responsibilities would
be. With the foundation now laid, it is expected that the momentum will be quickened
considerably. Participants are now more familiar with the method of operation and some of the
delays encountered during the first year should be reduced considerably during the remaining
life of the project.
The Extension Services Unit continued to provide technical advice in sugar cane production to
the cane farming sector – some 8,000 farmers as well as on-farm assistance to sugar estates. The
Unit has as its main functions the provision of information and training in relevant agronomic
techniques; the correct use and application of agricultural chemicals; piloting the expansion of
new commercial varieties in conjunction with the Variety Development section of the Agronomy
Department; providing technical reports which form the basis for the disbursement of replanting
loan funds; collecting data for assessing industry performance in cane production; providing
information and training related to cane harvesting, the cane payment system and general
management information for the industry. In addition, Extension Officers managed several plant
nurseries and demonstration plots across all the cane growing areas.
During the year, quantitative and qualitative evaluations of sixty varieties were undertaken in
yield trials across the industry. The assessments were made after the varieties were screened for
their susceptibility to smut so that only those varieties which were resistant were retained in the
programme. A Stage 1 nursery with 31,300 seedlings was established at Monymusk; in addition,
Stage 2 and Stage 3 nurseries with 2,032 clones and 470 varieties respectively were assessed for
Four promising varieties, BJ8532, BJ8534, BJ 8783 and the locally developed J9501, were
selected for accelerated multiplication in semi-commercial (pre-release) nurseries for
distribution to growers throughout the industry. BJ8859 was recommended for commercial
production in the St. Thomas – Ye- Vale area, even though it was observed to be moderately
susceptible to smut since it was shown to be a high sucrose variety. Six other varieties of the
BJ90 series are currently being propagated in holding nurseries before promotion to semi-commercial nurseries.
During the year, a large inventory of varieties was released to growers for commercial
production. These included BJ7504, the most widely grown variety occupying 25% of plant cane
hectarage and BJ7015, the second most important variety (15%). Other varieties of significance
were BJ7465, BJ78100, BJ82102, BJ8252, BJ7938, BJ82156, BJ82119, BJ7627 and BJ7355.
BJ78100 proved very popular in the arid southern plains of Clarendon and St. Catherine because
of its tolerance to stress and underwent rapid propagation replacing UCW5465.
The Institute continues to promote the use of reduced tillage as a technique for effective land
preparation while reducing the number of operations required in conventional land preparation.
A prototype of a single row machine (RTM 1.5) has been fabricated commercially based on
designs developed by the Agricultural Engineering Department and is now being evaluated on
farms in the Trelawny area. Reduced tillage is a major component of the concept of
Conservation Agriculture which the Institute is seeking to promote in the industry. This
complements SIRI’s efforts in other areas such as green cane harvesting, trash blanketing, the
use of organic manures and biological pest control to assist the industry in adopting methods
which are more environmentally acceptable in sugar cane production.
GIS/GPS TECHNOLOGY AND SATELLITE IMAGERY
The Institute, through the instrumentality of the Ministry of Land and Environment and the Land
Information Council of Jamaica, has acquired satellite IKONOS imagery maps, in electronic
form, of all the major cane growing areas of the island. The maps have proved to be of
considerable use in: planning and implementing the use of Centre Pivot and Drip Irrigation
systems and in improving existing drainage systems; assessing the hurricane-induced damage to
drainage systems in the sugar cane growing areas of Westmoreland.
Other important long-term benefits to accrue from the use of this technology include: monitoring
of the life span of the sugar cane crop over several crop cycles to determine trends in yields;
linking soil database information to satellite imagery to obtain information on cane yields in
relation to soil composition - structure, moisture, fertility, chemical status and topography.
An industry-wide survey for ratoon stunting disease (RSD) was completed in 2004. Samples
collected and prepared in the approved manner were sent for analysis at the French Agricultural
Research Station, CIRAD, in Guadeloupe. Previous surveys had failed to establish the presence
of RSD in Jamaica, although this is a disease long affecting nearly every sugar cane industry in
the world. The causative organism was detected in this survey, but at relatively low levels of
intensity, at St. Thomas Sugar Co., Worthy Park, Appleton, and Frome. No positive readings
were obtained from samples taken at New Yarmouth, Rhymesbury, Tulloch Estate, Bernard
Lodge and Long Pond. Varieties affected were D14146, BJ8226, BJ7504, BJ7262, BJ7627,
BJ82119 and BJ82156. Early indications were that D14146 was the most susceptible. However,
this is a variety that was present on only a small acreage in St Thomas. Since these results
became known, most of the variety has been removed. A more intense survey is being planned to
establish in greater detail the distribution of the pathogen in the industry.
QUALITY-BASED CANE HARVESTING
The Institute’s effort to launch a system of payment that encourages delivery of better quality
canes during harvesting at St Thomas Sugar Company was unsuccessful despite enthusiastic
support of the management and all the preparations being made, including sensitising of the
various players and putting the requisite computer program in place. Inadequate factory
preparation and attendant operational problems and inefficiencies led the management to
recommend a postponement.
Other aspects of the Institute’s field work are reflected in the following papers presented to the
Conference of the West Indies Sugar Technologists in Barbados and the Annual Conference of
the Jamaica Association of Sugar Technologists:
Cane Farming Viability within the proposed EU Price Reduction - C. Woolery
The influence of harvesting practices on sugar yields in Jamaica - P. A. E. Wright
Technologies for Reduced Tillage Machines - L. M. Agra, K. Chandon and P. White
An assessment of distillers’ waste application on soil quality and cane yields at Appleton Estate -
C. G. Fearon
Factors influencing dextran levels in sugar at the Appleton Factory, Jamaica - P. A. E. Wright
and D. Foster
Environmentally friendly methods for raw sugar analysis - M. R. Wilson
The Crop Review 2003/2004 - D. Little & J. Jaddoo
FACTORY SERVICES DIVISION
1.1 Preventative Maintenance
The Engineering Department continues to provide a preventative maintenance programme, based
on non-destructive methods of testing, with the main objective of assisting
factories to reduce
stoppages due to electrical and mechanical failure and to meet the industry standards for time
utilization. The services provided included:
1.1.1. Laser Alignment
Laser alignment of steam turbines and alternators was effected at Bernard Lodge, Frome,
St. Thomas Sugar Company, Trelawny Sugar Company and Appleton.
1.1.2. Dynamic Balancing
Dynamic balancing of boiler fans and centrifugal baskets was carried out at all factories –
Bernard Lodge, Frome, Monymusk, St. Thomas Sugar Company, Trelawny Sugar
Company, Appleton and Worthy Park.
1.1.3. Ultrasonic Thickness Testing
This service was utilized by St. Thomas Sugar Company and Worthy Park.
1.1.4. Ultrasonic Flaw Detection
This was carried out at St. Thomas Sugar Company and Worthy Park.
1.1.5. Vibration Measurements
A number of vibration measurements and analyses were carried out at Frome, Appleton
and Worthy Park.
1.1.6. Mill Tribology Study
The study, which is being carried out in collaboration with the University of Technology
Engineering Department and Caribbean Casting (2001) Ltd, involved initially an
investigation of the wear pattern of mill roller shells manufactured by the above
company. It has been expanded to examining the arcing of mill rollers to improve
throughput and extraction.
1.2.1. Core Laboratories
The Instrumentation Department provided general maintenance, repair and calibration
services to instruments from Core laboratories. An “Interface Data Capture” system was
installed at all core laboratories although it was not utilized at the Bernard Lodge and
Frome laboratories. Oven rooms were provided for the Long Pond and Appleton core
laboratories and the Department assisted in the installation and calibration of an NIR
system for dextran determination at the Appleton factory laboratory.
The programme of upgrading truck scales at factories was continued with the installation
of new Intalogic display units at some factories. Scale display units at Appleton, Bernard
Lodge, St. Thomas Sugar Company and Marcus Garvey Sugar Warehouse were all
upgraded with the installation of at least one Interlogic system at these sites. Installation
of new display units will be completed during the 2004/05 harvesting season while those
at Trelawny Sugar Company, Worthy Park and the Ocho Rios pier are slated for
replacement after completion of the present crop.
All weighbridges in current use - at factories, warehouses, and the pier – were calibrated
and certified by the Bureau of Standards. The scale at the Marcus Garvey Warehouse
required considerable repair as the compound was flooded due to heavy rains resulting
from the passage of hurricane Ivan in September.
Bagging scales at Bernard Lodge, Frome and St. Thomas Sugar Company were repaired
and calibrated. The servo balans scale at the Ocho Rios pier had to be modified to correct
for differences observed between weights at the outgoing and receiving ports; the
overflow gate was replaced and a new cylinder and flexible hoses fitted.
The servo balans scale at St. Thomas Sugar Company was calibrated and made ready for
operation for the 2004/05 crop.
1.2.3. Project at St. Thomas Sugar Company
The Department was asked to provide assistance to this factory in its effort to increase its
steam production and utilization. The Department installed a level control system on the
No. 1 evaporator. The back – pressure makeup system and an automatic pressure
reducing valve were repaired, calibrated and put into operation during the crop. A digital imbibition water meter was installed at the factory laboratory as well as a pH meter lime
1.1.4. Energy Study
A collaborative study on the possible use of woodchips as a fuel was undertaken by the
Petroleum Corporation of Jamaica (PCJ), the Sugar Company of Jamaica (SCJ) and the
Institute in May 2004 at the Frome sugar factory. The main objective of the study was to
determine how woodchips, provided by PCJ from its leuceana plot at Font Hill, would
perform as a fuel. The study was not as comprehensive as originally planned but analysis
of the data acquired (moisture content, calorific value, flue gas and furnace temperatures,
steam output) indicated that woodchips could be successfully burned using bagasse
combustion equipment and could be considered as a supplementary fuel to bagasse for
sugar cane processing and power generation.
2.0. Sugar Technology
2.1. Factory Audits
Factory Audits were conducted at Appleton, Trelawny Sugar Company and Worthy Park.
A check of instruments at all core laboratories confirmed that all instruments were in
good working order. It was found that the data capture system was used on a continuous
basis only at Worthy Park as at the other mills it was reported that the pace at which data
capture occurred was unacceptably slow. The situation is to be corrected before the
2.2. Collaborative Cane Testing
Two sets of collaborative cane tests were conducted involving all core laboratories. The
tests included all the analyses which the laboratories perform routinely – pol, brix, fibre
analysis, purity, JRCS, TC/TS determinations. Staff of the Sugar Technology unit were
present at selected core laboratories to ensure that all tests were carried out following the
prescribed procedures. Based on the calculated standard deviations, the results at all the
laboratories were within acceptable limits. Subsequent to the exercise, training seminars
were conducted at all core laboratories so that laboratory staff could acquire a better
understanding and appreciation of the purpose of these collaborative exercises.
2.3. Mill Testing
Three mill tests were conducted at Worthy Park in March 2004. The values obtained for
the cumulative extraction across the mill train (5 mills) varied between 95.2 and 96.7%.
3.0. Central Services
2.1. Economics Department
2.1.1. SIA Replanting Loan Programme.
The Department was given the responsibility for developing the protocol for
implementing and disbursing a one hundred million Jamaican dollar( J$100,000,000)
SIA Replanting Loan Programme for cane farmers. The funds, to be used on a revolving
basis, were obtained from the Development Bank of Jamaica based on guarantees
provided by the SIA. Some early set-backs were experienced due to protracted drought in
the rain-fed areas, late start of the cropping season in some factory areas and a shortage
of tillage equipment. However, at the end of the year, 403 applications had been
approved amounting to J$92.19M to be used for replanting 1,450 hectares. The early
indications are that the overall structure and administration of the programme have been
well accepted by growers and the programme should achieve the desired objective of
increasing the hectarage replanted annually.
2.2. Central Analytical Laboratory
2.2.1. The 20,500 samples submitted to the laboratory for analysis was less than the number
that was submitted in the previous year, reflecting a general downturn in industry
activity. Samples analysed included juice, sugar, molasses, leaf, soil and factory
2.2.2. Reducing Sugar Analyses
Weekly analyses of export sugar samples were undertaken throughout the crop to
determine if factories were adhering to the industry standard for reducing sugars which
should be less than 0.50% (w/w). There was an improvement over the previous year
when the industry average was 0.62% in respect of this parameter. However, the general
trend was for an increase in reducing sugar levels as the crop progressed, leading to an
industry average of 0.56%.
2.2.3. Quality Control Tests for Sugar Samples
A quality control system for the analysis of sugar samples was established during the
year to meet one of the requirements of the ISO 17025 accreditation programme. This
entailed preparation and analysis of reference samples against which all succeeding
analyses were assessed. This exercise provides a means of evaluating the analytical
methods being applied and indicates if the analytical procedures being used give results
which are outside acceptable control limits and if corrective action is necessary.
2.2.4. Polarization Measurements of Molasses
A study was undertaken to determine an acceptable method for polarization that would
not involve the use of lead subacetate which is used as the clarification reagent in the
current method. The study involved analysis of molasses samples obtained from three
different factories and compared the polarization values obtained using lead subacetate,
Octapol plus (a proprietary clarification reagent) as well as direct measurement by NIR
polarimetry. Statistically, the three methods showed the same level of precision but there
were significant differences in accuracy. The NIR method appears to be the more
acceptable for replacing the method involving lead subacetate. The project will continue
during 2005 and will be extended to include polarization measurements of massecuites
2.2.5. Dextran Determination
A comparative study on dextran analysis involving the Midland MCA Sucrotest and the
Optical Activity DASA methods was conducted at Appleton factory. The main objective
of the study was the evaluation of both methods under factory conditions to quantify the
dextran levels in cane and so monitor the development of dextran in canes delivered to
the factory. The time-consuming nature of the DASA method and the operating
conditions required are limiting factors in its use. The Midland method is fairly quick and
is hardly affected by environmental conditions but its inherent cost is a major deterrent.
However, the results indicate that the accuracy of both methods is questionable.The
results obtained from the DASA method appear to be inflated by inherent errors in the
calculation of the dextran concentration; the Midland method appears to underestimate
the dextran concentration. In addition, there is little correlation between the
methods.Further study is required and will be undertaken during the next season.
2.2.6. Dextran Audit.
An audit was conducted at Worthy Park to determine the reasons for apparent low sugar
recovery. The latter was attributed to high levels of dextran associated with poor quality
of incoming canes to the factory.
4.0. Environmental Monitoring and Management
3.1. Pollution Control Programme
Sampling and analyses of wastewater leaving all factories were conducted in accordance
with the National Resources and Conservation Act (Section 17) 1991. The results for the
parameters tested showed that, whereas factories were generally within the levels
specified for inorganic constituents such as nitrates and sulphates , they were out of
compliance with respect to other parameters such as Biochemical Oxygen Demand
(BOD), Chemical Oxygen Demand (COD), phosphates and Coliform bacteria.
3.2. Programmes at Factories
Two automatic valves were installed on both cane washing plants at Frome sugar factory
to allow for the selective washing of canes. It is expected that the efficient use of these
valves should reduce considerably the volume of waste water emitted from the factory.
Plans to introduce a dry-cleaning method for canes coming into the factory were aborted
as they were deemed unsuitable for the conditions normally prevailing at Frome.
3.3. Environmental Code of Practice for the Sugarcane Industry
The development of an Environmental Code of Practice (COP) for the industry,
undertaken in the 2002/03 crop by the Institute in conjunction with the National
Environmental Planning Agency (NEPA), was continued during the year. The project
was funded by the Environmental Action Programme (ENACT/NEPA) under the
“Private Sector Clean Technology Project” and the SIA. The COP was developed out of a
need for the industry to become compliant with environmental standards and is a
voluntary initiative to bring industry operations in line with accepted environmental
practices. The final draft of the COP is awaiting industry approval after which it will be
implemented on a phased basis.
3.4. Impending Regulations for the Industry
Two regulations – the Air Quality Regulation (June 2002) and the Sewage, Trade
Effluent and Industrial Sludge Regulations – are due to be implemented and they will
have a direct impact on the industry. The Air Quality Regulations will have direct
consequences for those factories that continue to burn fuel oil. Entities will be required to
have a licence to discharge and will pay discharge fees for burning fuel oil. However,
since bagasse is a renewable fuel, factories that burn bagasse will be exempt from this
requirement. Factories will be given one year in which to gather emission data to
determine the need to be issued with a discharge licence. The latter will be based on the
amount of fuel burnt and the sulphur content of the fuel.
The Sewage, Trade Effluent and Industrial Sludge Regulation is still at the draft stage but
it is likely to be gazetted in 2005.
WORLD SUGAR SITUATION
World sugar production in 2003/04 is estimated at 144.2M tonnes raw value, down from148.8M tonnes produced in 2002/03. Consumption is estimated at 142.8M tonnes raw value
compared with the 143.6M tonnes consumed in 2002/03. This resulted in a surplus of 1.4M
tonnes in 2003/04 compared with 8.9M tonnes in 202/03.
The lower output for the 2003/04 crop was as a result of smaller crops from the expanded
European Union, India, China and Thailand and occurred despite a 3M tonnes improvement
During the year the Doha Round was put back on track following increased cooperation from the
European Union and the U.S.A. in agreeing to a new framework. However, the dispute between
the U.S.A. and Mexico over the 20% tax on HFCS sweeteners was not resolved.
THE EUROPEAN UNION
In May 2004 the membership of the European Union (EU) increased from 15 to 25. The
expansion involves mainly Eastern European countries of which eight were part of the USSR.
They are the Czech Republic, Poland, Hungary, Slovakia, Slovenia, Malta, Estonia, Lithuania
In September 2004 The World Trade Organization (W.T.O) ruled that the European Union was
illegally dumping millions of tonnes of subsidized sugar on the world market. The ruling
followed a complaint from Brazil, Australia and Thailand accusing the EU of breaking trade
rules by providing sugar exports subsidies in excess of W.T.O limits. The 1994 W.T.O
Agriculture Agreement sets a quota of 1.3 mln tonnes for which the EU is allowed to pay
The panel ruled that the EU had failed to prove that sugar above the quota was not getting
government support, and therefore it should be considered as subsidized. It also ruled that illegal
subsidies were being paid for the re-export of 1.6 mln tonnes of sugar bought mostly from the
ACP countries, which enjoy preferential import tariffs in the EU. It ordered the EU to bring its
measures into conformity with WTO rules. To avoid affecting the poor nations with preferential
deals, it suggested this should be done by considering measures to bring its production of sugar
more in line with domestic consumption.
The European Union immediately said that it would appeal the WTO dispute settlement body’s
ruling against the EU’s sugar export regime. The outgoing EU Agriculture Commissioner Franz
Fischler said that the Commission was dissatisfied with the ruling and would appeal it. However,
the appeal would not deter the EU from undertaking radical reform of its sugar regime. Fischler
said such a reform would make the EU sugar sector more competitive and trade-friendly. The
EU proposed a massive reduction in its intervention price of EUR 623.00 per tonne falling in
stages to EUR 423.00 per tonne by 2007/08. The Commission’s draft paper suggested that the
reduction should start as early as 2005/06.
The proposals were met with strong resistance from some EU Member States and the ACP
countries. According to the ACP countries the proposals for the reform of the sugar regime
would have devastating consequences for their economies. In addition the severity of the price
cuts, the time frame for their implementation and the dismantling of the intervention mechanism
as proposed were totally unacceptable because they were tantamount to a breach of the long-standing preferential arrangement enshrined in the ACP-EU Sugar Protocol. At a meeting in
Brussels in October 2004, ACP representatives prepared an official response to the European
Commissions proposal to reform its sugar regime. In their response to the Commission’s
proposals, the representatives insisted that the EU respect its commitments on the ‘three
guarantees of price, access and indefinite duration.
The ACP group rejected the commencement of price cuts in 2005. They believe that a longer
period of adjustment is necessary and indicated that a more appropriate time for the
commencement would be 2008 when there would be greater clarity in the international sugar
environment. The ACP group also reaffirmed its assertion that losses due to price cuts should be
compensated for with an automatic and predictable mode of disbursement and that such
compensation should be simple, timely and recurrent. The group further proposed that a
Competitiveness Fund be established by the EU to aid the restructuring of the ACP sugar
OUTLOOK FOR 2004/05
Brazil’s dominance of the sugar industry has become overwhelming and is likely to remain so
for the foreseeable future. It has almost limitless land available to produce cane and, following its
success at the WTO, it intends to increase production significantly to fill the gap left by falling
The WTO ruling that much of the EU’s export were illegally subsidised is expected to be
confirmed in March 2005 despite the appeal that is expected from the European Commission.
The second formal estimates for 2004/05 place raw sugar production at 142.5 mln tonnes and
consumption at 145.6 mln tonnes. This would result in a gap of approximately 3M tonnes.
Average raw sugar prices have increased from 9.84 UScents/lb in October 2004 to 10.32
UScents/lb in January 2005 as a result of a number of factors:
Firstly, the fall in the value of the US dollar (sugar is a US dollar denominated commodity)
which lost 4.8% against the Brazilian Real between October and December 2004.
Secondly, strong demand from India, Pakistan, Russia and China and relatively poor crops in
Cuba and Thailand,
Thirdly, there is a belief that the rise in price is not enough to trigger great expansion in sugar-producing countries other than Brazil. Further, it is felt that the higher demand for ethanol,
especially in Brazil, will be at the expense of sugar, further tightening supply. This mixture has
prompted speculative funds to turn their attention to sugar, promising where huge gains can be
WORLD SUGAR PRODUCTION
Production Area Tonnes (M)
North & Central America 19.9
South America 35.8
2003 SALARIES & EMOLUMENTS SENIOR EXECUTIVES
POST TOTAL REMARKS
1. Executive Chairman 4,900,000 Plus Gratuity and Motor Vehicle
2. Director of Research, SIRI 2,722,080 Plus Gratuity, Motor Vehicle & Lunch
3. Director, Finance & Administration 2,778,578 Plus Gratuity, Motor Vehicle & Lunch
4. Factory Services Manager, SIRI 2,520,000 Plus Gratuity, Motor Vehicle & Lunch
OTHER SENIOR EXECUTIVES
1. Agricultural Services Manager, SIRI 2,752,315 Plus Motor Vehicle & Lunch Allowance
2. Information & Planning Manager 2,054,294 Plus Motor Vehicle & Lunch Allowance
3. Head, Extension Services, SIRI 2,127,861 Plus Motor Vehicle & Lunch Allowance