Sugar Transformation Unit

As at October 2009, the European Union (EU) reduced the prices of raw sugar imports from Jamaica by 36 percent. The Sugar Protocol, which allowed Jamaica and other ACP countries guaranteed preferential prices, has been replaced by the ACP Economic Partnership Agreement. In order to cushion the negative economic and social impact of changes to the EU Sugar Regime, EU has been providing financial assistance to ACP countries including Jamaica under the Accompanying Measures for Sugar (AMSP).

In July 2009, the Ministry of Agriculture & Fisheries reviewed The Jamaica Country Strategy for the Adaptation of the Sugar Industry: 2006 to 2015, producing a revised strategy document which was approved by Cabinet in September 2009 which is now being implemented. The revised sugar strategy is entitled The Jamaica Country Strategy for the Adaptation of the Sugar Industry: 2006 to 2020. The three (3) strategic objectives are:

  • The development and maintenance of a sustainable private sector-led sugar cane industry;
  • Strengthening of the social resilience, economic diversification and environmental  sustainability of Sugar Dependent Areas (SDA);
  • Maintain GOJ’s Macro-Economic Goals.

Location

The Jamaica Country Strategy for the Adaptation of the Sugar Industry 2006 – 2020 relates to the entire sugar cane industry, including estates and cane farmers. These sugar estates include:

  • Frome
  • Monymusk
  • Bernard Lodge
  • St. Thomas Sugar Long Pond
  • Worthy Park
  • Appleton

Executing Team

The Sugar Transformation Unit staffed by thirty-one (31) persons is responsible for overseeing the effective implementation of the GOJ’s Sugar Adaptation Strategy. A total of twenty eight (28) Project staff are stationed at field locations on each SCJ estate. There are three (3) persons at Head office in Kingston.

Cost and Achievements

Under the Accompanying Measures for Sugar, by 2010 an estimated 82 million euros (J$8.2 Billion) should be provided in the form of grants by the EU for the implementation of the Sugar Adaptation Strategy.

  • The Sugar Transformation Unit is currently operating with its full staff complement required to undertake the project;
  • The privatization of public sector sugar assets is far advanced with the divestment of two (2) of five (5) estates. The divestment is expected to be completed by the end of Financial Year 2009/10.
  • The Sugar Transformation Unit has been providing financing through the Cane Expansion Fund to assist with improving efficiency of operations within the industry. This fund will support expansion of cane production and provide capital inputs such as drip irrigation equipment to improve cane production efficiencies throughout the industry. The Sugar Industry Authority is managing this fund on behalf of the Ministry of Agriculture & Fisheries.

 

Website: http://www.moa.gov.jm/Projects/SugarTransformationUnit.php

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