MORRISONPRESIDENT AND chief executive officer of the Government-owned sugar estates, Livingstone Morrison, says the local sugar industry can produce sugar at the international benchmark of 15 US cents per pound, be profitable and internationally competitive.
According to Mr. Morrison, the massive replanting programme and rehabilitation of the factories which started since January 2003 are aimed at lowering the present production cost of 29 US cents per pound.
"I am confident that the plans, programmes, and strategies structured will achieve the targeted 15 US cents," he said .
Mr. Morrison's comment comes against the background of the European Commission's proposal to cut sugar prices by 37 per cent.
The proposal, if implemented, would result in a 20 per cent reduction in the price of sugar shipped after July 1, 2005 and a further 13 per cent reduction in the price of sugar on July 1, 2007.
Speaking against the background of the diplomatic intervention, Mr. Morrison says it is inevitable that the respective entities involved in the lobbying of the European Commission, ensure that the commencement date of adjustment is no earlier than July 1, 2006 and not July 1, 2005. He added that the negotiating team must focus its attention on getting the period of adjustment extended from three to a minimum of five years.
"Considering that we have a contract that has no termination date, the negotiating team must seek to ensure that the European Commission pays for any adjustments that it may wish to make," said Mr. Morrison.
