Govt. reaches Agreement with Tate & Lyle for 100,000 Tons of Sugar

Prime Minister, the Hon. Bruce Golding announced today (April 20), that Cabinet has approved an arrangement with Tate & Lyle for the provision of 100,000 tons of sugar, with prepayment of US$26 million this year, and US$20 million next year, to facilitate planting of the crop and preparation of the factories for production.
Making his contribution to the 2010/11 Budget Debate in the House, the Prime Minister said the agreement was similar to the one made with Eridania Suisse of Italy, which enabled the Government to continue operations at Frome, Monymusk and Bernard Lodge, preserving the jobs of 2,300 sugar workers.
Mr. Golding said the current agreement with Tate & Lyle is based on a reserve price of 370 pound per ton and a 50/50 share of the profit from the final sale of the sugar. He added that Tate & Lyle was selected because it made a better offer than Eridania Suisse, adding that sugar workers can be assured that for the next crop their jobs are safe.
The Prime Minister informed that renewed interest has emerged in acquiring the three factories, noting that discussions with a potential buyer with strong financial credentials are well advanced.
“This would involve significant investment in factory capacity and the planting of additional acreage,” the Prime Minister told the House, adding that it is hoped that a definitive announcement can be made when the Minister of Agriculture and Fisheries, Hon. Dr. Christopher Tufton, makes his contribution in the Sectoral Debate.
He commended Dr. Tufton and the Head of the Sugar Enterprise Privatisation Team, Mr. Aubyn Hill, for the excellent work they have done “to keep sugar alive (and) to give it the prospect of a new, exciting life.”
Tate & Lyle is headquartered in the United Kingdom (UK) and is a world-leading manufacturer of renewable food and industrial ingredients.