Hugh MartinTHE ALL ISLAND Jamaica Cane Farmers Association (ALLCANE) and the West End Cane Farmers Association have been hopping mad over the closure of the Hampden Sugar Factory in Trelawny. They should cool it.
They should cool it because to oppose the decision of the Government in this instance is to lose entirely whatever little public support there is left for the sugar industry. In the light of the tremendous losses incurred by the factory over the past decade what other recourse could there be but the one taken. Taxpayers did not take kindly to the writing off by Government of nearly $5 billion owed by the Sugar Company of Jamaica and by cane farmers between December last year and earlier this year. They are incensed at the idea of continuing to dump some $60 million each year into a factory, which its previous owners could not keep going.
The initial objection by ALLCANE, according to media reports, was to the manner in which the Minister made the announcement without consulting with them. Based on Acting Chairman A.C. McDonald's account of the events leading up to the announcement by Agriculture Minister Roger Clarke last Tuesday, there is some justification for their feeling of betrayal. To take them by surprise like that could be considered a serious slight. Ego bruising in Jamaica can have major consequences and Minister Clarke should know that "to diss is to miss" (apologies to Bunny) the opportunity of effecting a smooth execution of a difficult decision, or is it 'directive'.
But "AC", my former colleague of many years ago in the Ministry of Agriculture, and someone for whom I have the greatest respect, will forgive me for telling him that fragile sensibilities and sentiment will have to yield to economic reality. He should remember that 'cane farmer' Roger Clarke is a believer in the viability of the sugar industry. He should know that 'Minister' Roger Clarke is of like mind. What he seems to have forgotten is that 80% of the industry (the Sugar Company of Jamaica) is owned and controlled by the Minister of Finance. He should remember too that the chairman of the SCJ is the Governor of the Bank of Jamaica. These are officials who, purely on the basis of their awesome responsibility for managing the limited national resources, must at all times look at the overall picture and the bottom line. In other words, Mr. Clarke had no option and must have been deeply hurt by the accusations of betrayal. Indeed, his quick response to the charges revealed this. Still, he could have made a few phone calls which would no doubt have obviated the need for damage control.
The question now is what are the consequences of the closure? First on the list is the inevitable increase in the cost of transportation of the canes to the much farther Long Pond factory, a minimum of 25 miles away. This, the government has promised to absorb. But for how long, the farmers have asked, assuming they decide eventually to accept the arrangements.
The second is the uncertainty about the condition of the Long Pond factory. Can it really be improved to accommodate all the additional canes? In spite of the Minister's assurances the farmers are doubtful. Thirdly is the socio-economic fall-out in the community. Some two hundred workers have been separated from their jobs. Using the traditional ratio of four dependents per household we're looking at some 1,000 persons in a small community searching for alternative sources of survival. This is going to be a problem in an area where the soil and climate do not lend themselves readily to other forms of agricultural activity that can provide a liveable income to that many persons. The Government's social planners are going to be challenged to come up with workable solutions here.
And the situation could get even worse. The cane farmers have threatened that they will not supply their cane to the Long Pond Factory. They are prepared to deliver it to the traditional point and nowhere else. This could prove a big problem unless the Government decides that its transportation support will be from that point to Long Pond. Failing that we could see sugar cane production coming to an end in that part of the country which was described recently as among the best cane producing lands.
This is not far-fetched. Mr. Derrick Little, Head of Extension Services in the Sugar Industry Research Institute, (SIRI) demonstrated in a presentation two Denbigh shows ago, that whenever a sugar factory is closed sugar cane production in that area ceases. The clear and unequivocal lesson revealed in the figures over a 50-year period is that cane production is fuelled by the presence of a factory. Agriculture Minister Roger Clarke has acknowledged this in his frequent references to the increased cane production in St. Elizabeth consequent on the major retooling of the Appleton factory.
ALLCANE'S pique with the closure of Hampden centres to some extent on that understanding hence their need for it to remain open until they are able to implement their plan of building a new factory in the area. It has been shown over and over again that the decline in sugar production in recent years has been due mainly to insufficient canes. Hardly any of the factories has been operating at full capacity. Although this is due to some extent to the poor condition of the machinery in most of them the scarcity of canes has been identified as the major cause. Those who have been calling for the phasing out of the sugar industry may think that the Hampden closure is a beginning of the process. They would be wrong. There are clear indications that the SCJ is positioning itself to embark on a major restructuring aimed at improving efficiency in both field and factory operations. The Hampden closure is the beginning of that process.
What is needed to get the industry going is a huge injection of funds. This has already been identified according to Chief Executive Officer, Ambassador Derrick Heaven, in a recent address. When this happens the SCJ will be enabled to achieve levels of efficiency on par with Appleton and Worthy Park and be ready to compete with the rest of the world. With its plans for co-generation, refined sugar and a host of other value-added products, the future of the sugar industry seems assured.
Hugh Martin is a communications specialist and farm broadcaster. E-mail: humar@cwjamaica.com.
