Gov’t to Manage Long Pond Sugar Factory for Three Months

The Government will manage operations at the Long Pond Sugar Factory in Trelawny for three months as part of plans to harvest 95,000 tonnes of cane that is yet to be reaped.

This was disclosed by Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Karl Samuda, during Tuesday’s (March 29) sitting of the House of Representatives.

Mr. Samuda advised that the principals of Everglades Farms Limited (EFL), who were slated to take over the operations, “have indicated that they are in no position to start up the factory due to their financial position.”

He said they further advised that they were prepared to “allow the Government…to start up and operate the factory for three months, to take off the cane.”

Earlier this year, Everglades Farms Limited indicated that they would not operate the Long Pond Factory for the 2016 sugarcane crop, citing “serious financial problems.”

In response, the previous Administration approved $213 million in transportation support to assist farmers with the incremental cost of moving over 116,000 tonnes of cane from Trelawny to Appleton Estate in St. Elizabeth and Worthy Park, St. Catherine.

He pointed out; however, that Appleton’s failure to commence operations so far this year, due to a court injunction, has put these plans in doubt.

Mr. Samuda said it was intended that EFL would work with the Government during the 2016 crop to pursue other streams of income from the sugar cane in partnership with other investors, to enable the factory’s reopening in 2017.

“The Government, through the Sugar Company of Jamaica (SCJ) Holdings, and EFL are working out the details of this engagement and this Honourable House will be kept abreast of developments,” the Industry Minister stated.

Between 2009 and 2010, the Government of Jamaica divested its holdings in the sugar industry, namely: the Monymusk, Frome, Bernard Lodge, Trelawny and St. Thomas Estates, which constitute 70 percent of the industry.

The immediate post-divestment period coincided with the highest ever price paid for the country’s sugar exports.