My Two Cents » Good News – the sale of the sugar factories and more : A Jamaica Gleaner Blog

Good News – the sale of the sugar factories and more

Two bits of good news crossed my path recently and I thought it would be good to reflect on something positive for a change.

The first was the announcement of the sale of the three remaining sugar factory to a Chinese company. This helps us in several ways –

The government collects US$9m for the sale of the factories;

There is a commitment to upgrade the factory and to possibly expand the acreage of lands under sugar to twice the existing level;

The government no longer has to find funds to subsidise the sugar operations;

There will be continued employment for persons in the sugar industry beyond the end of this year although we do not know as yet how many.

Last year I asked the question of whether the sugar industry was dead and with the dilapidated factories and the low price of sugar on the world market, it seemed so. Now there appears to be a little life but it is still too early to say if there will be a full recovery of this sector. One obvious advantage of this deal is that the Chinese are buying so as to ensure a supply of sugar for their country i.e. as food security. It does not mean that they will produce no matter what but there is certainly more incentive to remain in production.

The second announcement is the proposed reopening of the Windalco factory. This is going to mean that the country will see an increase in revenues from the bauxite levy and much needed foreign exchange for the country. In addition many jobs will be restored, putting more people back on the payroll. This will mean increased tax revenue for the government both from income taxes and from the General Consumption Tax that will be collected from items purchased by both the bauxite workers and the sugar workers.

There is still a long way to go to improve Jamaica economic situation but I am reminded of that old Chinese proverb that says that a journey of one thousand miles begins with a single step. I believe that these are two steps on our long journey ahead and for that we should give thanks.

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8 Responses to “Good News – the sale of the sugar factories and more”

jo bent says:

August 6, 2010 at 2:22 pm

I will not pretend that I have a great understanding on everything, but being an avid
reader who is VERY opinionated I had to post LOL.

How long will the Jamaicans be hired for after
its owned by the chinese, and will they have any managerial positions?

Could not the Govt have used some of the money they recieve from all over to refurbish and revive this market.

Can this govt request prevailing wages from outsiders who hire the locals, instead of them just getting a bit more than minimum wages.

I am clueless, so enlighten me someone.

Lastly…When will the country of Jamaica itself be sold, maybe Trinidad,Spain or China will make an offer real soon.

After all Air Jamaica,Sugar, Marleys catalog
cement, morals and ethics is gone,sold whats next?
jodian letford says:

August 7, 2010 at 12:58 pm

Shouldnt look a gift horse in the mouth .However the Chinese have demonstrated that they have faith only i their labour force , perhaps with good reason . Their work ethic , is totally different from ours . One will recall the incidents whilst they were building the Trelawny Stadium , they if my memory is correct finished well head of schedule whilst our workers with their cultura smoking , domino , cooking and strike breaks fell somewhat behind . They were tensions between both camps .
In any event are we so desperate , that in a labour market , ovrflowing with idle hands , the Chinese should be bringing an army of unskilled workers here . Our salvation perhaps lies in the lesson from history , that they were physically unsuitable for the sugar cane fields .
Lets welcome them , and hope the project works to the extent that they may be persuaded despite our exceptionally high energy cost to build a refinery here ,for the first time at last , after 350 years .
albert says:

August 7, 2010 at 1:01 pm

I agree we need rejuvenate our traditional industries, this is a good start. We need support the ppl who are part of it ie the chinese and d americans. Then we go on to others. Manufacturing, screw driver , turnkey etc. 4 or 5 new entities per year shud b our lowest projection.
ripuree says:

August 7, 2010 at 4:47 pm

How is it good news for Jamaica to continue to sell out its Industries and Institutions to foreigners?

When are we going to understand that no one but ourselves should be put in charge of our best interest? Oh! I take that back, since most Jamaicans (blacks) don’t even care about their own black image, therefore cannot see the need to Rule their own futures and present lives.
Uforatie says:

August 7, 2010 at 5:52 pm

Two things I would like to focus on:

1. I still can’t believe that these three sugar factories and the accompanying thousands of acres of land are only valued at US$9m. And while I do understand that the government was desperate to get rid of them, I still think they have been vastly undervalued.

It just seems to me that every time there is a negotiation between Jamaica and another country, Jamaica always comes out the loser. Can’t we find negotiators who can stand toe-to-toe with foreigners?

2. Now that these sugar estates are owned by foreigners, I hope these insane people stop burning down these canefields.

I am still trying to understand what these people hoped to gain by setting fire to these canefields – an act that only made their community poorer. I can only come to the conclusion that these people are too evil to understand the consequences of their actions.

In any event, I hope this does not happen again. And if it does, the authorities should leave no stone unturned to find the perpetrators and mete out the harshest punishment possible!
john kind says:

August 9, 2010 at 7:10 pm

hhhh…then a 9 million dollar they bragging over,for selling so many sugar factories,i mean its usa dollars still,but check most nba players they walk arround with that much in pocket[joke]…i did,nt read the whole story but i am hoping the sale was to the usa or even china,because whats needed is job production,and believe it or not sugar is still profitable,things that nature produce will never go outa style..we dont need any so called third world type countries or other small islands to be buying up jamaica,they need legit investors like usa, canada, uk,and these days even china,thats the kind of serious investors jamaica need..
Winston Anderson says:

August 10, 2010 at 9:09 pm

COGRATULATION to the Jamaican Government on these TWO projects. The DEFICIT also is another very, very good news, and one must remember that it was 15-Billion THREE years ago. This government is working very hard, and of course Minister Shaw, is really doing a very, very good job. Give this government a chance, and in FIVE years, it will do ONE HUNDRED PERCENT BETTER than what the PNPs nightmaresd did in almost 19-years which seems only to be RIDDLED with corruptions, criminalities, extortions, and people who were only taking it and running with it. Good going Minister Holness, PM, and all your hard working ministers. God bless you all. Thanks.
BOB says:

August 22, 2010 at 10:15 pm

Where is the Good news in selling the sugar factories?.. what we have done is to give the Chinese our food to plant for us and they will in turn sell it to us and take the profit out of the country!.. they will abandon the sugar for other crops !. where they can sell to us!. and in doing so we will be their slaves!.

We should lease everything to them. that way we could still own those things while collecting money from them!.