Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697743422494.pdf (Guyana)
GUYANA SUGAR CORPORATION.

Annual Report & Accounts 1996 CONTENTS Board of Directors 1 Chairman's Report 2-11 Report of the Directors 12 Chief Executive's Report 13-36 Statement & Community Costs of Employment 37 Report of the Auditors 38-39 Profit & Loss Account Balance Sheet Cash Flow Statement 40 41 42 Notes to the Cash Flow Statement 43 Notes on the Accounts 44-50 BOARD OF DIRECTORS 1.

Mr. V. Oditt, A.A. G 2.

Mr. R. Alli, A.A. 3.

Mr 0.

Ramotar 4.

Mr. E. Heyligar, C.C.H.

5.

Mr. B. Newton 6.


Mr. R.M.O.

Glasford Chairman Member Member Member Member Member 7.

Mr. G.N.

Hilary Chief Executive Auditors The 1996 Accounts were audited by the Auditor General in accordance with the provisions of the Financial Administration and Audit (Amendment) Act, 1993.

A.L.

Lancaster Secretary CHAIRMAN'S REPORT Mr. Vickram Oditt A.A. Chairman of the Board of Directors -� ..

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';, increased remained continues in that and significantly However, 1996 was a good year for Guysuco production profitability the industry problems solved competitiveness among these challenges our costs.

reducing satisfactory.

to face a number of and which have to be addressed and our strength Not least is that of substantially if we are to maintain in the new century.

to 275,705 tons tons in tons in 1990 to 275,000 in 1996 amounted tons in 1995.
In with 249,840 has in production years the recovery with annual crops growing Production compared recent been remarkable from 129,000 1996.

In future production to achieve difficult improving yields steadily in the field, recoveries and productivity in the factory in the workforce.
will be won by making substantial in continued investments Such improvements and will depend on gains will be more CHAIRMAN'S REPORT rehabilitation achieving and more highly motivated capable technological in field and factory and a more disciplined, better work force and on a consistent basis.
practices of applying modem agricultural gained the equivalent in wages in 1996 with of 14 1 /2% approved Workers increase increase benefits, includin community centre oflots for housing continue improvement the conditions essential to be made available.

of the lives of sugar workers under which they work is an and part ofGuysuco's policy.

g medical facilities at highly trained of US quota of a full year's for 1997.

Other production allocations rate alignments of 16.75% a further outlets.
Sugar found beneficial Preferential which had come into force on the benefit in Increased The new Special agreement, 1st July, 1995 yielded 1996.

Increased And favourable sugar were received.

exchange continued to prevail revenue significantly budgeted.
It must be said that such additional revenue and the provision arising from favourable rate subsidised prices, movements, carries such windfall an end but while entrenching above the level which the industry l with it the significant conditions they obtain exchange while immediately which again yielded higher 1994 1995 I 1996 l of wage increases can sustain.
expectations than originally are bound to come to have the effect of drawback that The steady services , welcome in the EU matching increases in a n d l a b o u r y.

In the period However, such improvements cannot take place indefinitely without effi c i e n c y productivit 1995 -1997 there can be no doubt that the increase in e m p l oy m e n t c o s t s h a s exceeded what Guysuco can continue to absorb.
Such increases in employment costs unmatched by equivalent savings will sooner rather than later bring the industry to the point of crisis.

In 1996 revenue increased to a record level.

252,615 I 249.840 275,705 Revenue ($8) Production (tons) ExportRevenue($B) Total Export Sales Levy (SB) Material & Service Employment Costs ($B) Surplus (before tax and levy) ($8) Profit (after tax and levy) ($M) 16.8 18.1 21.9 18.
I 20.2 23.8 3.0 2.9 4.6 Costs ($B) 7.2 5.9 6.7 8.8 7.9 6.5 5.3 4.1 3.6 r- 224 691 320 -1 L- l .. � FINANCE Revenue and Expenditure in to US$ I at December rate in the year decreased by only 31 1995, 31 1996).
to US$ I at December was $18.4 billion 's revenue before sugar levy compared with $20.2 billion of over 17%, while the official ln 1996 OuySuCo was $23.8 billion 1995, an increase exchange 0.5% (0$140.50 0$141.25 Expenditure $16.6 billion Employment 48% of total expenditure 48% of expenditur 21.2 US cents per lb, compared 21.

7 US cents per lb.

The rate of inflation 4.5% in the year.

in 1995, an increase of 11 %.

Costs amounted was with the 1995 e).


Cost of production to $8.8 billion, (1995 $7.9 billion, was compared with Earnings and Contributions to Govemment The surplus billion before tax and sugar levy was $5.3 in 1996 compared with $3.6 billion in Guysuco and GA WU sign AP!

agreement 3 CHAIRMAN'S REPORT 1995, an increase sugar levy was $224 million $320 million $1.7 billion in export the Levy, contributions to $2 billion amounted of 47%.
Profit after tax and with compared of to in 1995, due to the increase sales levy.
In addition as follows: to the Government 11992 I Net Assets (Reserves) G$ billion 10 15 $ million Taxation 450 Custom Duties & C/Tax 396 PAYE/NIS 1,143 1,989 Capital Expenditure I Profit before tax ancilevyl G$ billion 2 4 6 1992 1993 1994 1995 1996 1993 1994 1995 1996 net assets and reserves in 1996, standing 1996, an increase increased at at $12.7 billion of 32% over GUYSUCO's dramatically 31st December the previous $2.4 billion year.

Net cash flow generated ( 1995 $11 million).


was Subsidies revenue GuySuCo's to suffer because consumer industry of sugar and cane farmers in tbe degree.

to a significant and profitability the domestic .it subsidises continues local Sales Subsidy The price of brown sugar has remained February, unchanged since effect of inflation real value of sugar earnings market.

below the cost of production The local price at G$2 l .9 l per lb is well per lb.

in tbe domestic 1991.
Since then the of G$29.87 Sales G$ billion J to replace a coordinated capital and renovate Implementing programme field factory remains a high priority GUYSUCO and $1,188 projects: 1996 on capital in in was spent in million assets expenditure $ million Buildings 102 0 1992 1993 1994 1995 1996 Agricultural equipment Cane punts 153 26 Factory equipment 497 Drainage and irrigation 22 Transport 124 Other 264 1,188 Assets and Reserves 4 The amount million compared of this subsidy in 1996 was $409 with $331 million in 1995.
Cane Farming Subsidy When farmers' per ton-before farmer (no levy deducted) cane is processed, sugar levy -is shared gross revenue 70% to the and 30% to GuySuCo has substantially reduced tbe CHAIRMAN'S REPORT to levy).

Every ton of sugar made from The (subject farmers' cane costs GuySuCo $13,752.

amount of this subsidy compared in 1996 was $314 million with $221 million in 1995.
HIGHLIGHTS achieved from 110,485 in 1996 at 275,705 annual production since 1982 when 287,725 at IO factories tons was the by the tons were acres of cane at 2.26 TS/ A.

Production in 1996 Production highest industry produced estate was made at eight factories estate cane at an average was the highest 1975.

Skeldon the highest Albion's bettered Uitvlugt field production of 55,043 tons was last in 1971.
The 27,220 tons produced was last exceeded field productivity 's production from 96,592 acres of 2.62 TS/A.

which since achieved at that factory.

ever recorded of 33,820 tons was in 1969. of at s there were further improvements overall from 78.54 to 79.62; In the factories in 1996: tons cane tons sugar ratio improved from 11.65 to 11.50; recovery improved efficiency However.
from strikes time efficiency to 68.29 in 1996. sharply from 80.08 in 1995 deteriorated factory and factory time out of cane hours lost and hours lost from 88.74 to 89.30. both increased and overall improved suffered which are and improving crop yields, and planting, in maintaining Land preparation fundamental future Above average rainfall seriously period.

compared the lowest with 19,977 acres in 1995.


This was achievement annual up to the middle of 1996 in that land preparation in 1996 Only 15.579 acres were planted disrupted a set back in 1996. since 1991. the importance continues or utilised were pest and other agrochemical to emphasise Guysuco of managing on sugar estates the environment properly.

In 1996 no insecticides for agricultural purchased control.
By the end of the year the programme of insecticide reduction decommissioning facilities storage Ogle was planned ofGuysuco's agro-chemical critically locations chemical for early in 1997.

All aspects of and standards to be continued on all and monitored 's very active Agro­ was nearly completed and demolition and the of the old plant at appraised by Guysuco and 24-D fom1ulation management Committee.
pesticide policies Safety stock 5 structures, $21.5 costing Expenditure in the has amounted to were replaced.

area of water control on 43 projects on the new aircraft and a central Four water control million critical $263 million commenced aerodrome the research administration.

since 1990.

Work hangar at Ogle at LBI for laboratory unit and offices for estates 9 labour lorries, including 52 motor cycles, of the transport fleet continued.

159 items of new 42 tractors, 6 long reach and 2 ambulances.
The renovation During I 996 the fleet received equipment transport hydraulic excavators same time 280 obsolete from the asset register spare , some donated Force and the remainder which yielded decreased equipped addressed purchased the steady $16 million.

significantly in 1996 but is still in some areas and this will be in 1997.
In 1996 198 cane punts were from a local manufacturer improvement At the vehicles were deleted -some dismantled for Police to the Guyana tender The fleet therefore in the punt fleet.

sold by public as part of over installation in factories in 1996.

Projects in the rehabilitation the most during steady progress equipment the year included: of the stage.
arc still at the planning the programme of replacing and inefficient Major projects factories However, obsolete made further completed of one 700 Kw diesel alternator of five milling LBI, respectively; premilling pipework at Albion; to suspension modifications Albion; receivers and upgrading and Uitvlugt to bagasse installation at Rose Hall and Blairmont plant at LBI of cane preparation steam and associated I & 2 major conversion firing at Albion; conveying of boiler house stream installation factories.
of boilers turbines at Albion and system at factories Asset People Are Our Most Important more than the people who work in the y.

This means that we in Guysuco must of their under and the conditions In Guysuco no asset is considered important industr both attempt employees conditions which they work and live.

In both respects substantial few years and has continued to realise while also improving has been made in the last the full potential of service progress in 1996.
CHAIRMAN'S REPORT Before giving a brief account of progress made in 1996 in fulfillin g the potential and improving the lot of those who work in the sugar industry, I should make a fundamental but too often It is the simple fact that the forgotten point.

greatest contribution any company or industry can make to the welfare of its workers is to maintain viability and assure profitability.

Unless this is achieved improvements in how employees work and how they live cannot continue.
Guysuco 's decline in the 1980s went hand in hand with a sharp reduction in the sugar workers ' standard of life and recovery in the 1990s has coincided with a sharp improvement in how workers in the industry li ve.

1 cannot emphasise this fundamental point enough.

It is a fact w hi ch workers and th e unions representing them and Management and the A sugar worker's child receiving one of the Bursa,y All'ards Board must eq ually recognise.
Putting the in to a pos it ion of s ustai nabl e industry co mpetiti veness ca nnot be a subj ect of contention.

T here is no "us" and "them" in the common endeavour to reduce hindrances to improved producti vity and lasting pro fitability.

Ifthere is one lesson in the world today it is that confro nt at io n b e t ween wo rk e rs a nd management can play no part in any successful modem industry or company.
Well qualified, well trained, highly motivated managerial and technical staff are an absolute necessity in operating and developing a modem industry in an international climate in which increased competitiveness is essential.

To recruit and keep such staff is one of Guysuco's greatest challenges.
ln the context of a poor country, where there are so many other calls on the industry's earning capacity, finding the Graduates at GTC Port Mourant - July, 1997 money to attract and retain qualified managers is a continuing problem.

Yet it is a problem which must be solved.

Jt will serve little purpose if we cannot substantially upgrade staff as we rehabilitate the plant which they operate and supervise.
In an increasingly compet1t1ve cl imate the Corporation must have as one of its key objecti ves an improvement in productivity.

Rationalisation of the labour force and staff establishments both on estates and in head office continued with full consultation among all concerned.

In 1996 while production increased significantly the tota l number of employees dec lined from 23,8 19 in 1995 to 2 1,029 in 1996, a reduction of 11 %.

Productivity improved from 10.5 tons sugar per employee in 1995 to 13.
1 tons sugar in 1996.

We give training and education programmes high priority.

In 1996, 56 apprentices graduated fro m the Apprentice Training Centre, education bursa ries awarded increased sharply from 55 in Champ ion workers and spouses at Kaieteur on an all exp enses paid holiday as part of the Corporation's Annual reward to 011ts1andi11g workers 6 CHAIRMAN'S REPORT 1995 to 100 in 1996.

13 cadets are currently attending the Guyana School of Agriculture.
18 cadets are currently enrolled at the Umvers1ty of Guyana.

and 4 cadets completed their degree programme overseas and returned to Guyana Tra111111g Semuwr at Ogle \,fanagement Tm111111~ ( 'entre fi,r Semor \!lanagerI and an addiuonal 4 cadets commenced studies at University in the UK dunng 1996.

Courses in management skills development were held throughout the year on estates and at the Management Training Centre.

Ogle.
Ogle.

On estates alone 7.620 employees attended courses in areas such as budgeting and cost control.

occupational health and safety.

supervisory development, factory maintenance and good cane cutting In 1996 also 84 managers from standards.

estates and head office attended Senior Management seminars on "Modem Concepts and Practices in Management" conducted by Dr.

A.M. Baksh.
A.M. Baksh.

Improving safety and environment standards 1s a pnonty concern: expenditure devoted to achieving high standards continues to increase.

Protecting the environment on estates has made considerable progress and accidents m field and factory were again s1grnficantly reduced m 1996. in The delivery of health services has improved.

Primary health care centres on all estates and the special chronic disease clinics are playing an improving the health of important role employees and their families.
The preventative approach to health care and inrnattves to fo ter healthy life styles have become central themes of our strategy in providing medical and health services.

7 ~ .

The Sugar Industry Labour Welfare Committee now receives over 120 million per annum.

In 1996 the proJecrs and programmes undertaken by this Committee to provide more housing for sugar workers and improved water supply and welfare services increased significantly.
Guysuco has itself provided 450 developed lots for sugar workers at ubs1dised prices m nine housing areas on estates.

By the end of 1996 work had begun to develop areas for the allocat10n of housing lots for senior and junior staff.

The programme of rehabilitating and improving commumty centres continues.

Guysuco has no\.\ rehabilitated and re-opened 7 centres since 1992 These provide the opportunity for c. tate people, especially young people.
to take part not only m cricket and other sports which are being v1gorousl> promoted on all estates.

but abo to participate in many other commumty.

cultural and educational act1\ ities.

increased In Guysuco, increased production and producttv1ty are rewarded by improved wages and Production incentives.

incentives are an important part of workers' earnings.
ln 1996 a total of 181 day were paid to employees in tax free weekly production incenuves and in add1tton 188 days were paid in tax free annual productton incentives.

In include meal addiuon non-wage benefits allowances, provision of tools and boots, free transportation and medical services, subsidised hou mg and training opportunities for a wide range of employees.

Unfortunately, Guysuco continues to be affected by strikes which, particularly in prime production periods, seriously reduce productivity.
In 1996 man days of work lost through stnkes and stoppages increased to 99,762 from 72,000 in 1994 and 80,000 in 1995.

Guyana 's Leading Corporate Citizen No assessment of Guysuco 's performance \\ ould be complete without noting the substanual and w1de-rangmg contribution \\'h1ch Guysuco makes to Guyana's economy It is no exaggeration to say that and society.

sugar's contribution remains essential to this nation's economic success and social stability.
j CHAIRMAN'S REPORT is substantial impact throughout the Guyanese and wide­ of the contribution is it is made not Guysuco's economy and ocicty The extent ranging.

perhaps only by way of well-publicised foreign exchange and employment to contributions revenue not fully understood since but also in many unsung ways.

earnings, the public life is the reason why the industry's o significantly role which sugar plays in the J to j recovery.
It is also ha contributed economic and profitable that the industry remain as efficient progressive, on its feet again and gradually A and development.

sugar unprofitable as it investment increasingly would be a disaster for the country overall why it is vital The important nation's own recovery Guyana's the reason vibrant, Guyana gets diversifies faltering, industry was in the past.

I consider it useful which Guysuco to list some of the ways in contributes.

to N.A.R.f.
to N.A.R.f.

Presentation ofLaborato1y Research Agricultural ( National Institute) Equipment 8,000 arc employed supply industry's and service the industry molasses.

by-product, in busines es which and utilise the Sugar accounts 20% of GDP and 40% of agricultural for approximately production.

contributes very substantially Guysuco to public revenue: (G$3,682 million) export levy, taxation, duties in 1996 US$26 million in sugar was contributed tax and consumption and employees' PAYE and NIS.
Guysuco provides for approximately cane farming employment, 21,000 persons, direct employment not including and an estimated Sugar is the largest in Guyana: exchange earned earner of retained in 1996 foreign from sugar represented 29% of foreign exchange national export earnings.

Sugar develops a wide range agricultural and industrial skills substantial opportunities industry of and provides and training educational for the benefit not only of the but also the nation as a whole.
to the Sugar is a crop excellently suited areas where it is grown in Guyana and is an of land industry example outstanding the principles apply.

of sustainable in which develop-ment Guysuco safety and environmental in policies protection actively promotes health, incorporating an example thus provides in the country.
enterprises the best modem practices and lo public and private Guysuco makes substantial con­ range of to organisations, youth development, to the widest possible tributions and religious charitable educational, sporting, health improvement, preservation conferences, which contribute many fields cultural and to helping exhibitions, projects, seminars, sponsor and events progress in Assi tance is on of endeavour.

to the nation's and heritage Presentation Community of vehicle Policing Group.
to assist Canje, Berhice 8 CHAIRMAN'S REPORT directed particularly including Government Agriculture the University Training of Guyana, Institute, to educational the institutions schools, the School of activities.

already overcrowded such a dislocating countries, is held in check.

Labour College.
Labour College.

and Critchlow urban areas, which has effect in most developing The migration of population into Guysuco's medical services, including The Prospect Before Us dispensaries and ambulances make an important contribution of health on every estate, to the provision in the nation.
services The rehabilitated and sports increasingly encouraging important are playing Community Centres an and and recreational part in sponsoring facilities on estates sporting marked by a significant to the industry and, indeed, opinion.

years has been in sugar which has taken place in and approach leadership There was a time when the could almost be said to have been The recovery recent change in attitude by the country's public industry written past, a declining all changed.
contribution vibrant future nation's administration.

off as being an industry present The crucial is now well recognised is planned and no future.

That has importance for it at all levels and a of the in with a chequered of sugar's elements First, that there were two important it was soon that diversification out of sugar recommended I believe in this change of attitude.
recognised which had been so easily solution Diversification usefully was begging in addition for economic be pursued, diversification disaster.

to sugar might out of sugar as a simply did not work in practice.

Annual Athletics and Cycling L.B./ Com1111111ity of an international Centre Ground.

which is ,urn standard Championships at the as sugar declined came fully into of the contribution to public finance, focus.
The nation in Guyana the it and to Secondly, enormous importance makes to the economy, the society could not afford risk.

And as recovery did the country gain economically society to lose what wa being put at proceeded in sugar so too a new lease of life both and in a whole range of benefits as a whole.

to developments throughout the country.

Guysuco is making a significant to housing SILWF programmes of developed housing and staff.
ln addition contribution reactivated provision workers transferred requirements to the national development drive.
the nation through and its own lands for Guysuco has to as a contribution and community I 0,000 acres of land surplus to Government housing the end of our in sugar with arrangements so vitally clarity depends, that what in the name of free trade will To those who advocate preferential trading the EU on which our industry we must point out with absolute they are advocating prove in practice developing the destruction essential stability.
of an industry to economic countries which remains and social progress to be deeply unfair to like ours and will lead to Sugar estates serve as important of agricultural rural areas.

Comm in a multitude centres and industrial developments in urn ties in these areas benefit of ways from sugar estate We in the Guyana sugar industry we have entered reassessment and transition.
there i intense debate understand a period of crucial on the implications On every side that of the 9 CHAIRMAN'S REPORT new World Trade Organisation, of the emerging free IV trading bl ocks, o f post Lo me arrangements between the ACP a nd the EU, and o n the need to become mo re competitive in a world where market forces will dominate.

In this period of transition we are confident that our preferential trading arrangement in sugar with the EU can be fully maintained.
T he market stability sugar enjoys in the permanent Sugar Protocol and the additional Special Preferential Sugar agreement contrasts sharply the serious uncertainties facing other with commodities.

sugar's long term viab ility by becoming more competitive.

We recogn ise that unless costs per ton of sugar produced can be quite sharply reduced sugar faces an uncertain future.

To this end we have embarked on an ambitious yet attainable goal to reduce our current cost of production by some 30%.
I am convinced that our strategy to meet this challenge must include a substantial increase in sugar p rod uc tion th ro ugh a signifi cant improvement in cane yields throughout the industry brought about by the disciplined application of the best agricultural practices in Ship at Demerara Sugar Terminal loading sugar for the E. U.

Quota.

On the other hand, we are not by any means complacent.
We know that the secure marke ting access in Europe which our sugar enj oys gives us a limited period which we must use to ensure 10 both the growing and the reaping seasons.

Another essential part of the strategy to reduce costs is to invest heavily in rehabilitating the industry 's productive assets, particularly our factories.

Without major factory renovation it w ill be to mai nta in c urre nt productivity much less improve it.
Out of date imposs ibl e , CHAIRMAN'S REPORT costs yet our to increased arc still full of aged and obsolete which needs to challenge and carry through as investment and as far as possible modernise, plant leads inevitably factories equipment An immediate initiate the capital renovate, factory be replaced is to of urgency to necessary our a matter programme facing the industry capacity.

urgently.
urgently.

We belic\c the re ources in the There have always been many challenges but those we face now are Guyana sugar industry than those we have recently not greater the that we have the will, overcome.

to add to our plans, in a sugar industry achic\cmcnts in the future Guyana which is fully sustainable to play a leading and one which will continue role in Guyana's We face the fast progress.

with confidence.

approaching and establish and the people new century which they have given so willingly.
and workers and achievements for their in a challenging which and integrity r this great I also must sincerely national • for the support and experience are invaluable.

I thank my fellow Directors co-operation The knowledge, they bring to directing industry thank the management contributions but successful secure more remains cannot with management Together get the job done.

face the challenges the future of Guysuco.

I am absolutely year.

Much has been done to much Ho""ever, to be done.


What is sure is that we of the coming years divided.

and workers that we can confident .., REPORT OF THE DIRECTORS submit The Directors 1996.

31st December, their report for the year ended 1996 G$M 1995 G$M PRINCIPAL ACTIVITIES Directors Remuneration 0.27 0.36 of the Corporation The principal activities of sugar cane and the conversion growing and farmers' molasses.
were the of its own cane to sugar and its by-product, Stock Adjustment 380 794 Depreciation 1,368 1,088 SUGAR PRODUCTION/SALES Audit Fees 5 5 The sugar production year were: previous data for 1996 compared with the Net (gain)/loss on exchange 36 (54) 1996 1995 Change Interest Income (66) (48) Interest Expense 71 134 Total acres harvested 96,592 95,682 0.94% Tons cane per acre 29.82 27.88 6.51% Management fees and expenses 357 408 Tons sugar per acre 2.62 2.41 8.02% The charge compared with G$382 million in 1995. for taxation was G$450 million .
Tons sugar (including sugar from farmers cane) 275,705 249,840 9.38% The net profit million 1995. comoared after taxation in with G$320 million was G$224 Sugar Sales in 1996 amounted G $19.5 billion against in 1995. to G$23.1 billion RETAINED PROFIT MOLASSES PRODUCTION/SALES carried forward to 1997 was The profit G$1.8 billion as against G $1.5 billion in 1995. production Molasses was a 5.

7% increase 118,225 tons.


tons which in 1996 was 125,437 over the 1995 production of sales in 1996 amounted to G$819M as Molasses against G$732Min1995.

FINANCIAL RESULTS for the year before The turnover G$23.8 billion compared The net profit (G $ 702.4 million provision for:- sales levy was export with G$20.2 billion million at after making in 1995) was arrived in 1995. before taxation G$674.1 12 CHIEF EXECUTIVE'S REPORT Mr. Neville Hilary Agriculture Operations PRODUCTION.

more than the in 1995.


GuySuCo 252 863 tons sugar (91.

7 and private tons sugar, In 1996 GuySuCo estates· farmers' lands produced 275,705 some 25 865 tons ( l 0.4 percent) 249 840 tons achieved estates contributed percent of total production).

contributed more than in 1 995 and represented of total production in 1996.

Farmers produced tons sugar in 1986 when 22 034 tons sugar were made from farmers' cane.
22 842 tons, which was 20 percent 8.3 percent over 20,000 Private fanners last harvested 96 591 acres Some estates The GuySuCo estates in 1996 compared acres.

all of their cane but the area stood-over was small and compensated extra reapings blocks with a budget of 96 346 were not able to take off to 1997 at other estates and haul distances.
for in 1996 by to balance off higher than Mean cane yield for the year on estate lands ts/a was 6.9 percent in below the budget for at 29.82 1995. but was slightly 1996.
However ratio (tc/tc) than budget and tons sugar per acre (ts/a) 2.62 was 8.7 percent the tons cane per ton sugar at 11.39 was some 1.3% better higherthan in 1995. at The improvement that of 1995, which itself percent better in cane quality over was some 6.8 than in 1994. reflected ripeners on an Some 58 340 acres the use of chemical increasing scale.

( 60.4 percent) treated of estate with ripeners.


cane were compared with 28 823 acres (30.1 percent) of estate excellent ditions cane in 1995 when the natural ripening con­ of the first crop also contributed cane quality.
There can he to the improved little doubt CHIEF EXECUTIVE'S Agriculture REPORT Operations Estate Porductions l st Crop 2nd Crop Anuual Budget Actual Actual Total 40,230 56.361 96,591 96,346 95,682 1,157,631 1,722,889 2,880,520 3,012,266 2,668,050 Acres Reaped for Mill (I) (2) Tons Cane Milled Tons Sugar Produced 100,631 152,494 252,863 261,061 230,808 30.57 29.82 31.27 Tons Cane/ Acre 11.30 11.39 Tons Cane/Tons Tons Sugar/ Acre 2.71 Tons Sugar from Farmers 7,721 15,151 22,842 21,605 19,032 Total tons Sugar 108,060 167,645 275,705 282,666 249,840 27.88 11.54 11.56 2.71 28.78 11.53 2.49 2.41 Sugar 2.62 • (1)"Acres" (2)"Tons" are long tons = 2240 pounds = 1.016 tonnes.
acres= 1.057 Imperial are Rhynland acres= 0.4253 ha.

positive has had a ripeners effect on sugar production to have contributed that the use of chemical significant, and is estimated tons sugar in 1996.

It may be anticipated that there will be further improvement in 1997 when the industry of cane target with a ripener treated achieved.

of 75 percent is prior to harvest delivery a satisfactory of cane was processed times showed a from 1995 and only 56.8 two days tons of 1995 but still rate.
Regrettably, marked increase percent of burning.

This was disappointing particularly year delivery crop.

Clearly delivery there is a need to improve times were worse than in the first management.

as in the second, drier part of the packing within 17 400 achieved The 275 705 tons sugar was the highest by the industry production 1982 when 287 725 tons were produced factories 2.26 ts/a supplemented sugar (including farmers' In contrast, at Versailles).
was made at 8 factories and at an average ts/a which was last bettered annual since at 10 cane at from 110 485 acres of estate by 3 7 925 tons of that made from cane the sugar in 1996 from only 96 592 acres sugar productivity by estates of 2.62 in 1975.
Punt loads from farmers at 5.40 tons cane were very much lower than for the estates and if estates are to continue farmers, especially receive have to be taken to ensure that there is an overall steps will punts free of charge, then in the efficiency increase who to those farmers ofutilisation.
to supply punts to total for 1996 at 86.64 rainfall was some 11 percent The overall inches year mean annual total wettest since 1993. higher and the year was the than the 40 estates Skeldon's of 33 820 tons sugar was the at that factory, Albion's of 55 043 tons was last in 1971 and the 27 220 tons sugar were last at the Uitvlugt in 1969.
Wales' productivity factory of ever recorded Of the individual production highest field production bettered produced exceeded 2.75 ts/a was the for the year (behind a gain of 23.8 percent Uitvlugt productivity over 1995 while and LBI also achieved gains of over 20 percent.
annual second best for the industry Skeldon) and represented Over the year the estate 6.18 tons cane, slightly average lower than the 6.20 punt load was rainy season for the Southern of positive values Index (SOI) in the latter half of that the year-end first crop of 1996 could be After a than average.
and November The series Oscillation 1995 suggested and subsequent to be wetter expected drier-than-average slightly rainy season December (November at 22.6 inches was some 9.8 percent while the succeeding average to May) at 29.06 inches (February percent wetter first crop of 1996 was some 25 The heavy rains in 1995 the c9mplete than average.
1995 to January 1996) wetter-than­ 14 CHIEF EXECUTIVE'S REPORT Operations A.gric11/t11re and with land preparation hut did not hinder the hane ..... t which at th 1: start of th 1: year and at thc-c-nd of the first cror interfered planting was comrkted rrior to the onset of the mid­ year rains.

was serious seldom dried-out as fields to support sustained in-field machine moYemcnt \\ith the re:-.ult tillage programme hudgel.
that at mid-year the heh ind was some -1-0 ren:ent The dfrct on land prc-paration sulliciently programme was initially ks ..... as al the end uf 1995 there was a fallow land hank for planting in The planting constrained rca.sonahle 199h.

I {owner.

once this had been exhaw,ted the planting lack ofavailabilttv r�1k dropped considerably lands.

ufprc-rared due to The wcathcr dried out in the second part of the in year\\ hich allo\\'ed the crop to he cumplctcd good order a few days hcfon.
: ( 'hris.trnas and i:nahled much nf tllL' shortfoll to hL' reco\ crL·d.

preparation 111 land for much L)f the year and \alues hetwecn July and The SOI was positive of positive the ..... cries No\·embcr year-cnd rain ..... \\ould.

somewhat abm L' average 1997 would prnh,1bly as in 1 LJ95 96, he while the first half of he wetter than a\cragc.

199'1 suggested that the I 996 ·97 and Irrigation .
thc former has hecn approached cane farmers· by run-off savannahs and hv of the Drainage system was o\·erloaded .

� from neighhoring systcms \Vere either The latter with the drainage from the a<ljoinine contributions lands wherc the drainage inadequate and had cullarsed.

prohlcms an.'.

hc-ing addressed assistance Board \vhile hy a proj ed lo protect the estate from run-off by raising dams and excavating main drains and the Ankervi rhe prnjcct.
which requires somL: 390,000 cuhic yard comrlcte was 72 pcrcent The major outstanding matter was the Anken·ille which is tu bc comp lcted, along with hea \'Y duty revetment early in the new year.

facades.

other I le pump outfo 11. the excavation stm1cd in August.

at the end of the year.

rump outfall cxcavatinn replacement at the pump station, of required which was hea\ily silted, than had heen slow The outfall, \ ery much more excavation originally cxpccted, progress.
It is planned that the excavated banks will bc stahilisc<l the work proceeds tu rctard erosion and siltation hence the relatively \Vith \'ether in future.

grass as Land preparation extell.

',ion plantinK and variety systems nnly npericnced rain ..... Skeldon, Despite hea\·1er-than-averagc Fnrnnre, Wale ..... and Uitvlugt --L 7.
6 and � flood days respedi\ely in 19% rerlecling the improvement in \\·ater over the rast l'i \· e years at management ly Rosc I fa] l ( i'-6 days J, these estate (:27) Albion ((i)f, LBI (-+O) and Blairmont fllh)ding.

estates Extra dn1inage at Rose Hall and the prm is1un of new pumps at LBI in 1997 should allc\iatc coast.
is to he installed along the South frnm extended ...... Rcgrcttab suffored capacity drainage dry weather with the result land preparation in the sewnd halfofthe work._.., to continue until that 17,575 acres ( 83 Ahm e a\ crag:e rain foll to the rrnddle of the hut the yi:ar disrupted relativdy :vcar cnahled Christmas of budget) percent or fallov,:ing.
level achiewd in 199S \Va� higher than in ' either 1994 or ] 9l)3 and represented recovery from the mid-year ,;1gnificant ,;lwrt fa I l. This toraL altlwugh were prepared for planting not to the a ed at the B,1th section of lthe early 111 the year and it seems The main problem at Blairmont was encounter cultivation prohablc-that steps since taken have resolved the prohkm althnught will need to be closelv years yet.
at thi� estate for some nH.rnitored drainagL' During the heavy mid-year rains the Alhionc - - at 15,579 acres was the lowest sincc-19q I hecathc after Planting annual achievement the middle of the vcar \ erv littk land was availabk from fallo\1,/ and planting to await the availahility therefore land.

Planting rather than risk plant cane yields hy planting !Jtcr, In consc4ucncc periud�.
th� end of the year there was a substantial fallowed of land availahle at at area during for planting unproductive of prepared had, was halted in mid-November, 15 are vaneties for specific soils and ratoon remain relatively on these soils while others are canes on poor soils that it to replant for as long as constant.
some of the older ratoons selected vigorously lower yielding would be uneconomic yields however, there is a need to review the plough­ out/replanting programmes that planting targets achieved.

In this way it may be expected that annnual average no doubt that at each of these estates may be improved.

are regularly and to ensure yields There is, each of total cane of total cane area at least one percent 97.5 percent eight varieties 2.5 percent.
At the end of the year 11 varieties, covering area, occupied while a further the remaining group D 7661 is of future large scale commercial 51131 may be expanded at individual estates.

varieties production.

while D 4946 and B at specific accounted Of this latter are being phased out from The other minor interest for locations DB 7869 continued to occupy the largest at 25.5% of total by DB 66113 (18.5%) area of any variety followed DB 75159 (13.3%) DB 7047 (9.1 %) B 41227 (7.9%) and DB 7160 (7.6%).
cane area During the year DB 7869 was the most widely planted variety accounting for 4039 acres (26% of planted area) followed by DB 66113 at 3280 acres (21 %), DB 75159, 2602 acres (17%) and D 8415, 1948 acres (12%).

A further for the remaining 1411 acres (9%) and DB 7160, 1081 acres (7%) also being planted at all estates.
anticipated to all of these varieties DB671760andD7661 nine varieties 24% of planted accounted area with D 15841, there will be extensive that in addition in 1997. planting It is of CHIEF EXECUTIVE'S REPORT Agriculture Operations Month January February March April May June Total 1st Cro July August September October November December Total 2nd Crop Period Annal Total the first crop of 1997. under cane and 8348 acres for planting and fallowed at the end of 1995.
The 8348 acres of which This compares At the end of 1996 the Corporation's estates had 96 369 acreas prepared 7384 acres were wet fallow.

with 96 893 acres under cane and 6916 acres of wet fallow of prepared predominantly crop period 1997 and ought to have a significant impact production in the first crop of 1998 and Certainly the potential thereafter.
larger-than-usual help to redress which at present the second land are to be planted during to plant a the first crop will the cane production imbalance towards is heavily area during weighed the first of on crop.

has reduced at at the end of substantial Since the beginning of 1991 GuySuCo has planted 104 891 acres or 109 percent of the area under cane at the end of 1996.

This programme the proportion of cane lands over 5+ ratoon from the 60+ percent the end of 1991 to some 14 percent 1996.
There are however older ratoons across the industry 6+ratoons still w i t h t h e hig h e s t c o n c e n t r a t i ons a t Emnore (13% of cane area) and LBI ( 18.1 % of cane area).
areas of and cover 7 percent of cane area, 16 Budget A %B Annual Total Frist Crop I Second Crop Annual Total Actual Actual Total At both of these estates 6536 Land Preparation 5836 Planting 11140 9743 17575 15579 21230 21719 82.8 71.7 20308 19977 CHIEF EXECUTIVE'S REPORT Agriculture Operations B 41227 continued to decline in this with only 626 acres planted, will continue well at selected Although importance, variety performs DB 7047 may be somewhat to sugarcane believed although there be any premature and will not be planted only where smut levels are heavy will further plough-out.
as it to be planted areas of some estates.

more susceptible smut than was previously position satisfactory The variety highly any single variety pool to enable the industry exotic disease remained of the industry on with no over-reliance and a sufficiently to react well to or pest intrusion.
wide gene ENVIRONMENTAL MANAGEMENT destruction will commence in I 997. techniques were of Microoair a change to the aircraft department, application by the introduction Agrochemical refined atomizers which not only increased the safety of s but almost doubled operation productivity knapsack work and was appreciated much for its ease and comfort features.

for its many safety was introduced of the aircraft.

The CP3/2000 for manual by spraymen sprayer in operation as as the for disposal.
Company began to collect the year all workshops The Shell (Antilles) waste oils from field workshops During and neutralise while discussions aim of establishing used battery cases for re-cycling.
were being held with the a system of re-exporting acids from spent batteries began to collect Safety Committee of all aspects policies appraisal pesticide of and The Agrochemical maintained its critical the Corporation's monitored standards management studies also continued protective equipment work with chemicals improvement acknowledged consultancy pesticide estates, written will be published management by the at all locations.
of agrochemical The Committee of new types of personal (PPE) for those who with the aim of further in standards as being high by international that are already manual for sugar Committee's members, groups.

It is expected that the early in the new year.


of organic laboratory of estate the levels in waters as they enter, continued The central to monitor the quality irrigation and drainage started waters as part of the programme, in 1994, to monitor and solutes inorganic traverse industrial represents coastal interest industry.

environs.
environs.

The information the only cohesive data-base and is, therefore, water quality to a wider community and leave the estates' than the sugar on of cultivation and via by bioremediation donation, destruction were purchased pest control.

and other continued for agricultural or The of insecticide stock reduction As in 1995 no insecticides utilised programme agrochemical sales, or secure storage facility, .
At the end of the year the programme nearly decommissioning storage facilities plant at Ogle would be completed 1997. and demolition of material was very that the of the old and it was anticipated depending complete early in in a hazard containment on the nature and 2,4-0 amine formulation spectroscopy polarimeter.

with rigid for pol procedures in 1997.


Several into the value of lead-free by near infrared dual wavelength were established at LBJ and of canal bank will be so Studies continued sample preparation measurements with the Rudolf The first trials polyvinylchJoride revetment further sections protected Albion at the 43 Koker expansion, significant progress rather concrete, boxes.

Other estates, and Albion, sustained arch bridges.


these cost reduction reduce actively prefabricated that both of It is anticipated which also exercises, will be pursued estates, made of drainage demand for hardwood, in 1997. than hard-wood notably again at 43 Koker, made a effort to install LBJ, Enmore notably in the introduction steel bonds, were and the remaining storage New agrochemical at five estates completed three estate bonds will be built in 1997.
The central container at Coldingen agrochemical destruction and a programme facility was completed of container store and agrochemical 17 ; CHIEF EXECUTIVE'S REPORT Agriculture Operations ENGINEERING SERVICES section completed over from 1995 and awarded The civil engineering projects contracts 120 were completed projects carried for a further 150 projects at year's 30 in 1997. of which end, leaving to be completed 19 with 45 in 1995) including section completed The surveys (compared for the 43 Koker expansion, Ankerville outfall excavation Albion scheme), Lorenzo out of sites 54 surveys works studies for the (as part of the for the levels replacement engineering and the setting­ projects.
aqueduct for civil flood protection compared initiated initiated at a total value of well with the 121 in 1995 at a total value of The works in 1996 were spread The 150 projects G$396.35M projects G$330.80M.

across all locations between 19 companies who were awarded Berbice basis of open, competitive tenders were evaluated and reviewed which also awarded in Demerara and on the contracts The bidding.

by the civil engineers board by the Corporation's tender the contracts.
and were distributed of the structure checks of the Chateau Regular alignment Margot Chimney confirmed been no shifting past 13 years.

not completed.

to be accorded both the surveys Administration that there has for at least the field survey was This very important is project in l 997 by the highest and the Estates section early completion.

The Providence priority to ensure As in 1995 maximum use was made of the Topcon EDM and survey to the transfer Artech utilities.
system linked survey and construction Rehabilitation accounted estates contracts awarded) single civil engineers of houses at (36% of total of 12 by the designed duplex units, as the largest for G$143.66M project.

with the construction bedroom hangar the central accounted for 28% of total A new aircraft expenditure.

Head office projects contract Ogle Aerodrome, building and the office for estates administration same complex these buildings engmeers.
in the All of by the civil at laboratory were the main projects.

unit at LBI compound for the research were designed and buildings contracts of a new G$91.

77M.

The construction bond at LBI, the completion of the at Rose Hall, bond rehabilitation construction and heavy duty revetment Field structures totalled fertilizer fertilizer bridge at all estates G$21.50M control aqueduct expenditure for 43 projects since 1990. were the major projects.
was spent on replacing A further structures, most notably four water the Lorenzo the total at Wales, bringing in this critical area to G$262.99M to the work of the Corporation's In addition surveyors sale oflands through carried surveyors.

a further 20 surveys, the lands committee, mainly for the were by independent out under contracl as payment refused, initiated of G$9.954M of G$10.99M Councils for rates payment Democratic of demands a number of NDC's to present their manner.
There the The section land rent to MMA/ ADA and Gladys Hicken Ltd. and also approved to 26 Neighborhood (NDC) in part payment and taxes.

Regrettably either or were unable, demands was, therefore, validity payments was referred Government.

in the required review in full.


of Local were made demands format and were agreed after for which only small were made and the matter of these claims on account no means of determining were made promptly to the Ministry then payments in the legally Where the required and FLEET MAINTENANCE included Other significant works refurbishment Community maintenance building Berbice of the Coldingen ation and Centre rehabilit across the industry and the for centre diagnostic of a regional at Rose Hall.
further complex, purchase were placed for all fleet items approved in 1996 including Orders for capital tractors; lorries; for bagasse punts were purchased 50 motorcycles handling.

7 labour and 2 front-end In addition 14 100 hp tractors; 20 45 hp transport loaders fro m a local 198 cane 18 CHIEF EXECUTIVE'S REPORT Agriculture Operations and Wales.

The workshop closed and all repair including at Diamond was and maintenance was moved to LBI.

work on punts, work, 6 long reach and 2 ambulances.
of these items, all with self­ 13 I 00 hp tractors; 52 motorcycles; as part of the fleet improvement The majority manufacturer programme.
of which are being purchased in l 997. generated funds, will be delivered During 1996 the fleet received 159 items of as part new equipment, much of it purchased 29 of the 1995 capex programme, including 45 hp tractors; 9 labour lorries; transport hydraulic excavators the same time, 280 pieces of equipment in age from 5 to 34 years (weighted ranging average 9.9 years) register.
some (pick ups and service to the Guyana Police were sold by public In consequence units during I 996 and at the end of the year stood at 1754 units of all types of equipment.

The fleet is still and these are to be addressed were deleted Some were dismantled for spares, cars) were donated Force and the remainder over-equipped by 121 the fleet decreased G$I6.38M.
from the asset in several raising tender in 1997. areas At its key role in Workshop contined with the output of major repairs Central the industry for field equipment improved over the 27 jobs/year 1992 to 1994.

In 1996 each job cost an average average G$675 589, a slight ofG$699 over the reduction for 1992-1995. at 45 for the year much 966/job average for .
~ to the major repairs the Cuthbertson the workshop drain diggers to work with D6 crawler In addition rehabilitated which were modified tractors, assisted jobs, assisted 1994. built dam-bed irrigation units and works via 585 in factory out-of-crop up from 236 in 1995 and 136 in also began to carry out repairs The Workshop for outside thereby parties generated G$3.

7 6M in the year.

at commercial rates and of field units to 83% from 80% 1996 improved The average availability throughout in I 995%.
Better workshop structures have an impact new equipment.

that almost 30% of the fleet is still what are considered ages elsewhere.

and equipment on the fleet economic are beginning as is the infusion to of It must be noted however, beyond replacement standards, for the year was highest at where only a small fleet is Fleet availability Coldingen, managed.

The Skeldon the best of all estates, 84%.


fleet averaged 87%, by Albion at followed attention monitored performance the operating costs and of the new types of in the past two years.

the Jailing­ and excavators The section overall equipment introduced was paid to Particular Hyundai Honda motorcycles, Land Rover Defenders, performed and as a result the majority well to date.

Tyre trials tyre sealants of sugar lorries.


continued to were introduced all of which have There were significant field workshop Skeldon, particularly improvements and facilities in at buildings with Enmore and Uitvlugt at Blairmont gratifying progress Albion, RESEARCH ACTIVITIES Breeding and Selection: facilitated for the year's a record 458 of The selection crossing potential diversity.

high quality for genetic 385 parents.


emphasized Heavy flowering crosses using genetic background programme and base broadening Twenty-six crossing Central utilization crosses.

country programme Breeding Station in their programmes to the were exported for for specific in Barbados D varieties from the Demerara from the 1995 Demerara were established infield together from the Central seedlings 344,204 Breeding programme as stage 1 material generated seedlings Station's DB Programme.
from Stage IV trials varieties standard and 3 DB varieties DB 66113.

Breeding Plant cane results that 14 D outperformed have indicated the with 43, I 57 variety in trials R 540 has been to compare very top commercial DB variety D 8687 and D 89 I 39 have The imported demonstrated favorably with the 7869.

Varieties shown early promise in Stage V estate of commercial trials.
Additional potential seed 19 CHIEF EXECUTIVE'S REPORT Agriculture Operations to estates for early field and of yield trends evaluation.

ofD 89138 was distributed material for rapid multiplication factory An analysis years has indicated an average DB 66113.

Accordingly, DB 66113 as the industry replaced trials.
variety of 0.4 tons sugar per acre more than the variety over the past 5 has in that DB 7869 has yielded standard trends of 21 commercial, and promising First ratoon semi­ varieties results Maturity commercial continue suggest to be evaluated.

that 42 weeks is the optimum reaping age.

if repeated These trends could impact significantly management the objective in planning in order to achieve of sugar.

for harvesting of optimum recoveries on estate and evaluations Crop Protection of in 1996.
Smut infestation levels compared over the past 5 years.

There was no major sugar cane disease outbreak 0.

72% across the industry with levels favourably of high levels An outbreak DB 7047 at Blairmont investigation was localised within the outbreak on whether "new" race of smut are continuing to date have been inconclusive.

of smut occurred Further problem of a is indicative but results has indicated the estate.

estate.
estate.

that the on Investigations alone, introduction introductions Among the successful was Merlin which with Diuon, of a control early doses and in the more safely handled dry flowable formulations.

commercial and in combination applied gives effective and long residual at pre-and wide range of weed especially and under damp or dry stages post-emergent Merlin is the most exciting conditions.

since the advent herbicide of the & Atrazine.


The Ametryne Triazines has also proven an combination Dual/Igran effective alternative to the traditional Ametryne/Atrazine/ 2,4-D combination, for 2,4-D Amine in Starane and for control broad leaf post-emergent partial replacement Gramocil alternative has proven extremely effective t h e t r o u b l e s o m e pyrimidalis as an Gramoxone while Arsenal in control has replaced to hand weeding, w e e d E c h i n o c h 1 a grass).

for hand weeding.
for hand weeding.

also substitutes (Antelope of and control were also recorded results management Encouraging integrated specific problem Rottboellia conchinensis Cabomba aquatica, Echinocloa (Antelope and Panicum Antidesma maximum (Guinea grass), weeds.

These included (Itch grass), pyramidalis ghesaernbilla grass).
in of of low volume application with the Micronair to the GuySuCo agricultural of spray vol urn es AV 5000 has led to reductions The introduction technology Atomisers aircraft by 50% for herbicides The increase sprayer volume sprayers tanks and their productivity programme.

in the manual control in productivity low has been dramatic.

of the aerial Lancelot have been fitted to larger and 33% for ripeners.
is being evaluated ANALYTICAL SERVICES at Enmore levels infestation proportions to be emphasized reduced.

Integrated continued Cotesia with overall of 0.16%.

Froghopper the during at Wales was reduced to Fresh There was no major pest outbreak year.

Rodent activity manageable Stalk damage levels and Castniomera were considerably management pest control.

showing agent for Diatrea.

demonstrated tillering stimulate the recovery of stools lieus in by Castniomera damaged of diamonium the previous cycle.
Application root development phosphate in stools flaviipes as an effective Ethrel (Ethephon) has been scale to has been biocontrol on commercial further promotes stimulated and to promote potential by ethrel.

for progress Considerable efforts newer generation has been made in the with at lower herbicides traditional applied herbicides to replace 20 58069 This represented conducted Laboratory on 12571 samples.

The Central analyses improvements by 6% over in productivity 1995.
The HPLC instrument operational after the acquisition units to prepare disruptions clean-up herbicide commenced.

analyses Polarisation of power.

Evaluation became of 0.2u filter by HPLC have of sample the water and a UPS to correct measurements on and determination procedures for residue CHIEF EXECUTIVE'S REPORT Agriculture Operations f.\cC'fll'III pla111111g \lllndards rn11port the gmll'th o( 11·e// eslllhltshecl stools un leaded sugar samples were conducted by the NI R wavelength 889nm.
Results ha, c so far indicated unacceptably poor correlation (0.8) between the analyses of leaded samples at 589 mm and the NIR analyses of unleaded samp les.

Co ll aborati,e testing of tissue samples in the lnternat1onal Plant Analytical exchange (IPE) scheme coordinated by the University of So1111d La11cl Preparatwn pracltce.1 neld \/llts/m /On lwn·e1·1s , .

~ Wageningcn continued.


The laboratory also participated in sugar analysis schemes of the Sugar Association of London (SAL) and the Sugar Association of the Caribbean (SAC).

Good correlation with mean va lues was achieved in al l the schemes.

The Central Laboratory performance wa within the top 25° o of participating laboratories in the IPE accuracy assessment.
CHEl .. 1/STRY & ENVIRONME,VTAL RESEARCH Estate waterways continued to be analysed at regular intervals during 1996, as part of the ongoing exercise to obtain base data on the composition of natural water and the potent ial impact of sugar production activities on water quality with the estates.

Analysis of inorganic icons and chemical oxygen demand (COD).

showed results generally wel l with in limits ·ct by the FAO.
The analyses of natural waters have revea led that water in the MMA, East and West Demerara Conservancie.

was significantly more acidic.

The Laboratory participated in a preliminary scree ning of severa l ca ne va ri eties for suitability for the production of yellow crystal 21 CHIEF EXECUTIVE'S REPORT Agriculture Operations Long canals take excess water out to sea sugar.
A spectrophotometric procedure was developed assessing juice c larity whi ch s h owed so m e pote nti a l fo r assess ing c larifi cation properties of indi vidua l j uices.

Soil Management and Plant Nutrition A laboratory study of the mechanism of flood fallow indicated significant after 9 months improvement in aggregate stabili ty of subsoil (below 15cm depth) of fl ooded soil cores.

No s ignifica nt increase in extractable inorganic N was detected from undisturbed soil.
However, cores of soil that had been reconstituted and sterilised by heating at 300oC, and flooded did Water management is achieved through a network of canals 22 release signifi cant quantities of inorganic N. Most of the N released was in the ammoniaca l fonn.

T his results suggests that the source of N after flood fallow could be from N H4 "fixed" in clay minerals.

O ne of a number of reduced tillage trials was reaped at Uitvlugt.
Results suggested that the paraplow on primary tillage mode was superior to conventional tillage.

Given the positive impact on productivity using this implement in a number of eva luations a second is being fabricated to fac ilitate more widespread evaluation.

land legum e fa ll ow fo r La rge scale management was done at Enmore and Wales estates.

The Enmore work provided useful implement Costly infrastructure provides access to the No.

43 Koker Expansion Project.


information on reduced tillage and subsequent semi-mechanised planting of sugar cane.

Plant cane results from fie lds with filtermud in formal trials at Uitvlugt and Skeldon had not shown increases.

An investigation of the effectiveness of applied irrigation water conducted on the Berbice estates indicated that irrigation intervals ofless than 6 weeks are relatively ineffective in water infiltration for heavy clay soils.

Trash retention trials were implemented on all estates.
Yield data obtained from the LBI trial suggested no major yield impact.

There were however, increases in topsoil organic matter content.

The w idespread use of cane ripeners has resulted in significantly better burning and reduced the trash after burning.

Trash quantity of CHIEF EXECUTIVE'S REPORT Agriculture Operations management is not now a major priority in ratoon husbandry.
Potassium deficiencies continue to occur occasionally in foliar samples from areas not traditionally awarded with potash fertilisers.

lime both effectively reduced exchangeable AL levels.

These results were repeated in fiel d trials at Uitvlugt estate where there was a positive impact of these levels oflime and low grade phosphate lime in plant cane yield of DB 75159 grown in a Stewartville series soil.
Field experimentation on Nitrogen ( ' Sprai·ing canefields Laboratory trials on potass ium availability us ing soi ls of contrasti ng origin have been com pleted.

Two Universi ty of Guyana students participated in the experiments for their final year research projects.

An extended laboratory trial on the impact of phosphate and lime amendments on phosphorus availability and acidity control was completed.
Results being evaluated have the more acidic soils, indicated that for phosphorus from soluble phosphate ources was converted to less available forms at a faster rate than the equiva lent amounts of phosphorus applied in low grade phosphate lime.

Limestone and low grade phosphate 2 3 efficiencies conducted at all estates suggested that there were s ignificant contributi ons to N uptake from soil reserves and only sma ll contributions from the fertiliser added in crop cycle.
C lose attention is being paid to these trials as they may have significant implications for future fertiliser management and co t .

Soil surveys were conducted on sections of the expansion area at Albion and at Bahama land at Blairmont.

The 500 acres of the Albion expansion areas surveyed were Skeldon Series soi ls.

The fields in the Bahama land are alluvial soils.


CHIEF EXECUTIVE'S REPORT Agriculture Operations Plant Physiology A GR/CULTURE ENGINEERING to the nitrogen Work on the contribution fixation progressed suspected of biological of sugar cane during the year.
A colony of and diaotrophicus, Acetobacter nutrition beds in 3 Dutch cambered into 48 ft and 72 ft wide efficiencies At Rose Hall estate, fields were joined beds to evaluate utilisation and impact ft wide beds tended shape was achieved Fertilising applicator bed which facilitated turning.

of machine on cane growth.

The 72 to flat -but satisfactory in the 48 ft wide beds.
with a tractor was successfully drawn two row done on the wider extensive operated of a filter mud applicator areas of Blaim1ont, loader experienced during the I st crop of at hour.

The The Bell operating downtime 1996.

When in work the machine over 14 tons per operating introduction significant LBJ to be treated acre.

A programme among estates implemented.

machine's loading.
machine's loading.

for sharing west of Berbice The principal Enmore and with filter mud at 20 tons per River was to the limitation was the slow rate of operations enabled the equipment Search for nell'er bridge designs.led to steel arch bridges endotropohie nitrogen purified.

Sub cultures sent abroad for confirming fixing organism was of this colony will be identification.

with NARI scientists and bud tissue were successfully for meristemic plant production In collaboration techniques culture developed.
introduced the mode of action fixation These plantlets trials culture of N­ to the sugar cane plant.

into sterile have been to assess and true potential were conducted cane ripeners were on an on all estates scale.

60.4% of estate acreage trials commerically No formal cane ripener during 1996.

However, applied increasing was treated production paper on experiences in Guyana was submitted publication SUGARCANE.

resultin of 17,400 g in an estimated sugar.


tons additional A chemicals with ripener and accepted by the international journal for Bridges of the future: corrugated tubes being set in place Training and Extension During the year, Plant Protection new features, seminars of the new CP3 -2000 series and maintenance staff held servicing to introduce 24 CHIEF EXECUTIVE'S REPORT Agriculture Operations equipment.

for training sessions operations across Engineers.


Eight classroom machinery the industry Total participation included supervisory on optimising preventative AIRCRAFT OPERA TIO NS were conducted by the Agriculrural numbered l 89 and , mechanics and Emphasis was placed field equipment operators personnel.

maintenance.

and Cessna 402 B aircraft The Corporation's sold in August 1996.

This effectively reduced the fleet to 3 aircraft.


time of982 hrs was completed, hrs 15 mins was spent in Agriculrure A total flying of which 590 was A trp1rnl /acron)ac1/it1· Briefs were also held spray cans at all estates.

the fean1res to introduce atomisers Depaitment introduced commercial protective in collaboration team.

Estates technical in depth to the new range of of the micronair with the Aircraft were also herbicides equipment.

and personal { .
and personal { .

Field laboratory the job training operation staff continue in analytical to be given on and methodology oflaboratory and maintenance with Micronair Atomisers.

and monitor sprtll' equipmenl Filled app/1ca//OI/ l/CCOl//l(S for 40° 0 IIIC/'C'l/Se ) Operations.

mins in 1995.

This compares with 945 hrs 30 Atomisers were equipped with spray equipment and during the year.
Productivity ripener The Agricultural Aircraft the Micronair monitor herbicide increased compared The Departmen t's a i r c r a f t a p p l i e d to 74,936 acres compared agrichemicals with with 37, I 08 in 1995.

7,092 acres were treated and chemical by 40% i.e.

200 acres per hour with 140 areas per hour previously.
application in The generic base o( mriety breeding has broaden 25 fertilisered Cane Milled (tons) 3,171,549 1996 1995 % Chang, j2,909,904 8.99 CHIEF EXECUTIVE'S REPORT Agriculture Operations -- --- of TC/TS has been during failures changes aircraft As a result of the much improved 1 company -Covington Corporation a new Turbo one of the aging John Yates resigned on te A decision aircraft.

taken to engage the services from the GuySuCo fleet, only 11,791 and 353 acres the year.
engine unscheduled fertilisers.

output acres were sprayed by contracted There were three caused by premature agricultural subsequently another overhau Aircraft Engine Inc.
The making efforts to purchase Thrush aircraft to replace piston Captain during the year and Captain Agricultural Surinamese Mahala has been granted Captain by the CAD and is attending to licence his Guyana Commercial obtain Engineers of the Aircraft course turbine completed the gas Williams/Harry Wendt Engineering The head mechanic also successfully completed Engineering School.

Pilot was recrnited.

a temporary classes Two Licence.

successfully and propeller aircraft.


S. Mahala - a at the courses School.

engine at the Art is Sugar Mnde (tons) 275,705 249,840 10.35 Pol% Cane Fibre% Cane 11.50 11.65 1.29 10.73 1().71 0.19 17.27 16.84 (2.55) Mixed Juice Purity 80.68 78.93 2.22 Tons Cane per Hour 107.5 106.81 0.65 1 Pol Extraction 90.31 90.28 0.03 Boiling House Rec.

88.16 87.00 1.33 Overall Recovery 79.62 78.54 1.38 F acto,y Time Efficiency � 88.74 0.63 Ovemll Time Efficiency68.29 80.08 (17.26) Hours Lost- Out of Cane Strikes 5292.
77 1932.34 3326.13 (59.12) 1536.93 (25.73) of from GuySuCo to the the management The anticipated transfer of the Ogle Aerodrome CAD was not effected GuySuCo has continued day management of the aerodrome.

Construction hangar commenced completed of the new GuySuCo aircraft and is expected half of 1997. during the year, to undertake the first during day to to be The improved purities increased pol in cane and mixed juice to the continued are attributed and use ofripeners.
Recoveries and Efficiencies FACTORY OPERATIONS Production Factory Performance produced 275 705 tons of sugar The factories from 3 171 549 tons of cane.

This repesented an increase of 1.29% in TC/TS to 11.5 when compared to the 1995 result.

result.

The rise in mixed juice purities positively influenced the boiling house recovery average The industry of 88.16% was the best result result since was 1968.

The extraction disappointing showing only a marginal increase did improve over 199 5.
Extraction during the 2nd crop at LBI following installation knives.

of the new reverse rotation the Cane Quality to 1995, however in pol% improvement the most positive in mixed juice purity There was a marginal cane compared significant increase 80.68 for the industry.

recorded three years.

The fibre % cane increased adversely to an average This was the highest change was the 2% of mixed juice purity by 2.55%.
for the last thirty improvement Continuing standards obsolete industry 89.30% -the best performance twelve and the gradual and worn out plant, average in maintenance replacement increased for factory time efficeincy to of the for the past years.

Overall decline time efficiency in performance.

reflected This was caused by a 17.26% 26 CHIEF EXECUTIVE'S REPORT Operations Factory in the number of hours lost the increase "out of cane" and strike the highest action were strike 1990.
However factory productivity from 2.25 to l .86 mandays improved 1995 and 1996. of sugar between to Stops due to recorded action.

since per ton included: and resigned retiring, four senior factory staff emigrated; out of ten persons retained; seven management of which two have subsequently resigned; four junior staff members shift were promoted to were employed trainees manager three were level.

Projects The total capital programme.


rate or the factory showed a The Projects Department in the significant under achievement implementation rehabilitation expended allocation.

accelerated staff and skills department.

establish implementation in 1996 was only 17% of the annual The main limitation It has now been decided project.
rate offactory rate of project a dedicated work has been the sho,iage project to an to in the Project team to boost the the lack of sufficient resources Despite large projects were undertaken completed successfully Projects some and during 1996 by the which included:- dcpa1tment lnstallation and LBI.
Albion of 700 Kw diesel at alternators ) h\R IO I f\l STFA \f DII S� C,LNS \,fWIJR', \I\\ IIRS \1\\ IJR', llllGL'S \,,JW IIR I DII 'ii I Installation turbines Albion.
of five milling and associated steam pipework at /pre-milling Conversion firing at Albion.

or boilers l & 2 to suspension Major modifications system at Albion.

to bagasse convcymg skills a problem.

to the Caribbean Recruitment The loss of pan boiling remains islands training restructuring Department position Manager of Factory was created.

were unable to keep abreast.


of the Factory took this into account Operations and a new Staff Development and The Installation of boiler Rosehall and Blairmont factories.

house steam receivers at Energy Production and Fuel Utilization Upgrading and Uitvlugt factories.

plant at LBl of cane preparation A total of 57,280 Mw hrs of energy was produced, 1995. representing a 3.14% increase on Staffing in the tumovero f 1996 saw some stabilisation still factory staff, although existed vacancies by the year end.
An active recruitment campaign shown some good potential come.

In general for management trainees has for the years to staff movement the senior Steam energy produced I .52% increase 80.61 ° o of the total 40350Mw hrs.

- on 1995 and represents energy required in crop.

Diesel energy produced on 1995.

8.20% increase 16884Mw hrs.

- 27 CHIEF EXECUTIVE'S REPORT Factory Operations Fuel consumed 5.5R% increase on 1995. l l 53.028 Gins.

( Imp.)

- A total of 11.

904 tons of wood was used by all estates.


Skeldon.

except the grinding patterns on estates This indicates being interrupted mainly by cane supply and factory down time.

Howcwr.

it must be noted that 4465Mw hrs.

were exported to ing 7.XC\, of total drainage output.

pumps represent in\'estmcnts arc required boiler plant.

to in order to in steam generated obsolete Significant replace achieve self suniciency electric power.

potential power to the grid.


t'iJT rngeneration and exporting as well as utilising our SUGAR .\1ARKETING of 1994 and 1995. in 1996. to be bouyant and the continuing in the EU monctmy leading the pattern continued production of sterling Following revenue Increased weakness system.

the EU considerably combined higher and significantly budgeted.

to produce above npectation.


revenue which was than had been achieved in recent higher than originally years to income in GS from sales to in than expected revenue derived rate alignments.

- 96 from fa\'ourable The higher the period 199-t exchange welcome.

drawback bound to come to an end and in the meanwhile have the effect \vages industry while immediately it the significant conditions above the level which tbe in the long tc-rm.
carries that such windfall and benefits can sustain of entrenching expectations of \\'ith are had changed.

in the EU system had for long led to a By the end nf 1996 the situation Sterling.

whose weakness monetary rroviden strengthened on the way down.

As often pointed a tum in the situation accelerates the need for radic .. il cost reductions to survive The simple fact is tlrnt tial incrc-ase in G$ revenue.

and G$ revenue as a result was out.

such the decline Guysuco and in re\Cnue.


's marketing was inevitable 28 as did the Go\·emmenl in the European in real y.

Basic prices and therefore pos1t1on in 1996 did not improve fundamentall Union remain static terms declined.

controlled remained Guysuco should the prices static price on the local market which has unchanged since February marketing for the foreseeable future but in these markets are That is the and \Vill tend to decline.

·s preferential we receive be secure 1991. outlet:,; .... d.-.
lorn/ Market with 22,631 Sales of brown sugar for Jomes ��� 23.23 I tons in 1996 comparl.d tons in 1995.

The producer's sugar sold locally per ton) has remained February, market, over this reriod.

since 1991.

The real value of sales in this therefore, at S2 I .9 l rer lb (G$49.07R unchanged price for brown has substantially eroded prices to industrial sold I .-t3 l tons of imported rrocess.
sugar at \vorld In 1996 Guysuco refined users who use this grade of sugar in their manufacturing J.OX7 tons sold in I 995.

Banks DIH and DDL.previously an: now importing Guysuco continues sma Iler manufacturers.

to meet the needs of the This compares with our main customers.

their own requirements.

EU ,,.lark et that in this vital commitment (j uyana met its fu I l comm i tmcnt or approximately 164,000 tons under the Sugar Protocol for the quota period ending 30th June.

1996.
1996.

It is worth remembering the period 1988 -1991 ( iuyana experienced shortfalls in meeting and was on the verge oflosing is now again recognised and one indeed ofothcrs should I 9% was the first under the Special Agreement between the which came into force on the 1st July, 1995. as a reliable surplicr ready to supply the shortfalls these arise.

ful I year of supplying sugar Preferential Sugar ACP and EU refiners quota.
Guyana CHIEF EXECUTIVE'S REPORT Sugar Marketing This Agreement, 200 l with a provision after that date is a significant for ACP countries which lasts until 30th June, for negotiating renewal market additional Guyana.

including Caricom Market if other countri In 1996 Guyana shipped basic share of this new market is Guyana's are about 27,000 tons but reallocation:,, received es experience shortfalls.

tons of sugar under this Agreement from countries shortfalls their commitments under this Agreement price.
the Sugar Protocol SPS wa $76,037 s $77,903 perton in 1995.

The price 85° o of from In 1996 revenue with per ton compared 44.609 including is approximately which could not meet in the period.

price in ECUs agreed was again frozen in 1996.

There has in this price since 1986. weakness in the EU monetary more pounds sterling of sterling relative during strength most of 1996 The revenue against GS revenue.
sugar increased from the continuing the deutschmark The Sugar Protocol annually been no increase However, against system which produced per ton and sterling's the US$ again combined to yield increased from Sugar Protocol $86,617 per 1995 and was $94,730 a fortuitously rates, favourable tum unfavourable.

underlying same and therefore value.

ton in 1994 to $95,247 per ton in per ton in 1996.

This is high level of price.


Exchange for a time, can and do easily ECU price remains The simple exactly in real terms is reduced fact is that the the in US Market basic US quota is 12,000 tons.

in 1995/96 this increased 27,000 tons through to Guyana's However, a p p r o xi m a t e l y reallocations of Agriculture reallocations bringing 26,000 Guyana's tons for this period.
by the US Department declared and for the 1996/97 have again been received quota period quota to approximately the region in Caricom required f Tarif of 40% on brown from outside tons compared to be applicable Guyana's ugar exported $ s to this s is tariff free.

In 1996 ale to Caricom with 24,123 tons less sugar from crop improved to meet more of its A Common Exteinal sugar imported continues countries.

market were 12,595 in 1995.

Barbados Guyana because their that country allowed domestic production.
St. Vincent market sugar from outside receiving permitted ready and willing has brought Caricom requirements from its own Also, in 1996 Guyana lost the when St. Vincent sugar and Guyana to the attention Secretariat.

this matter to supply of the and imported the region without the waiver which would have them to do this.

Guysuco was to supplying brown sugar to Caricom Guysuco is committed quality competitive received $46,714pertonreceived good at countries price prices.
The average with compared in 1996 was $55,073 in 1995.

World Market did not sell sugar on the The last time sugar was sold In 1996 Guysuco world market.

on the world market was of 1995 when 23,247 an average at the beginning to Canada at tons was sold price of$40, 165 per ton.

prevailing world market is a residual one market in this residual and of what an efficient should to Prices in have to adjust this market are The so-called and prices are not an indicator competitive industry in order to survive.
unpredictable of production.

levels, increased expanded Guyana will sell 1997/98.
the period the new SPS market in the EU, in the US and quota allocations that it is unlikely sales to Caricom in and well below Guysuco's Given expected cost production sugar on the world market compared In 1996, 21,444 tons of US quota sugar was shipped The price received 1996 was $62,072 $65,192 per ton in 1995. with 5,413 tons in 1995. for US quota shipped in with per ton compared Prospects vital market outlet Sugar's and indeed no immediate been substantially threat increased with the in Europe is under has recently 29 CHIEF EXECUTIVE'S REPORT Sugar Marketing estab lishment of the SPS Agreement in 1995.
The security of sugar 's access into Europe is built into marketing arrangements which are not dependant on the renegotiation of LOME IV The market stabi lity sugar enjoys in the permanent Sugar Protocol and the additional Special Preferential Sugar Agreement facing contrasts with Caribbean bananas, rice and rum.

The trading arrangements founded in the Sugar the SPS Agreement were Protocol and e ntrenched the new World Trade Agreement and are therefore secured against chall enges such as bananas now face.
the uncertainties in However, sugar does face a serious threat in its main market.

T here the basic price has not increased since 1986, will remain no more than stable for the next few years and is then likely to decline.

Moreover, the recent strengthening of sterling in the EU monetary system is likely to remove the windfall e lement from the revenue which the industry has received from the European market over the last three years.
In such circumstances the need to reduce costs in order to remain profitable has become more imperative than ever.

HUMA N RESOURCES MANAGEMENT General Principles and Issues Our approach to the management of people in G uysuco wi ll continue to be g uided by the fo ll owing principles: Our people are our mos t important resource and effecti ve management of people is key to our success.
Our success is mos t likely to be achieved if our human resource policies and procedures are c losely li nked with and make a contribution to the achievement of corporate objectives and Guysuco 's plans.

influence on Our culture and va lues, organisational cl imate and managerial behaviour wi ll exert a major the achievement of excellence.

We wi ll manage and where necessary change thi s culture on a conti nual basis.
Continuous effort is needed to get staff and workers to achieve integration, to work to a common purpose.

Particular emphasis will be directed at any disruptive pressures or trends to either neutralize them or manage them in a constructive way.

Over the last year, we have had to p lace greater emphasis on competence, improving quality, minimising cost, devolving authority and rationalizing sections, practices and procedures.
There has been and w ill continue to be pressure for greater flexibi lity on all aspects of human resource management.

We believe that the weaknesses of some individuals can be cushioned by the e ffectiveness of team work in all its forms to enable people to meet the challenge of change.

We must continue to strive for a more strategic approach to acquire develop, manage, motivate and gain the commitment of o ur people.
Establishment The total number of employees reduced by 11 % from 1995 as fo llows: Rational isation of the labour force and staff and un its continued with full consultation among all concerned.

Reduction Training and Staff Development Apprenticeship New entrants for 1996 to talled 6 1 while 56 Apprentices graduated.
3 0 REPORT CHIEF EXECUTIVE'S Management Human Resources Adult Technical Evening Classes or 175 Tradesmen participated in 12-18 A total conducted week courses and advanced courses Mechanics, Industrial Fitting Electricity.

in both introductory in A gricultural and Machining and Trainees a 12 months introduced for Personnel programme designed from among Personnel Mam1gement The Corporation training Management e m p l o y e e s t o m e e t t h e n e e d for trained/experienced Management.
staff in Human Resources Trainees recruited SSEE Bursary Awards Orientation children an award each valued from 55 to I 00 in The Awards were increased a core who attained 1996.

Workers' over at the SSEE in 1996 were of 400 and at $40,000 granted over school cycle in the five years' secondary $7,000, of $6,000, disbursements, S9,000.

ely.

The 1996 pay and SI 0,000 repectiv out was $600,000.

Since has expended Scheme.

$3.5 million $8.000.


Training of Supervisors/Foremen 1991 the Corporation on the SSEE Awards Two 5 day Man Management for Supervisors organised Regions.

and Berbice Demerara were Seminars in the and Foremen Programme A 4 day Orientation and conducted recruited/promoted throughout to senior the industry.
for staff members recently was planned staff positions CXC!GCE Awards Health and Safety Training of fees for their success at a total of in refund children received Twenty eligible $247,570 the CXC O'Levcl and GCE A' Level examinations has been expended scheme since 1991. in 1996.

A total of $1.2 million on the CXC/GCE Award of Safe and Effective Use of 3 day seminars Pc tic ides were conducted by OHSE.
and Berbice in both Demerara Senior Management (GSA) Guyana School of Agriculture comprising Thirteen cadets first years are cuITently The six Cadets (first years) commenced training 7 second and 6 the GSA.

attending in 1996.

·s Management HRM Dr. A. M. Baksh, strategy.

was contracted As part of I the Corporation Development Consultant Senior Management "Modern Concepts Management" total of drawn from Estates attended locations and "Senior these seminars.
and Head Office two to conduct in A Seminars and Practices entitled Management".

University ofGuyana/Cadetships Training Activities Conducted by Estates cadets made up of 14 continuing in 1996 studies at the University of in 1996 are and 4 who commenced enrolled Eighteen students arc cuncntly Guyana.

The 4 who enrolled reading for degrees (Chemistry), Mechanical Science and Engineering.
A griculture, Electrical in Natural conducted and clerical several for manual, craft, During the year estates courses grades supervisory and Cost Control, and Safety, Factory standards.

in areas such as: Budgeting Health Occupational Supervisory Development, Maintenance.

Good Caneeutting Factory Management Trainees Thirteen appointed training period.

Management Trainees were for the typical 18 -14 months A total of 7,620 employees courses.
attended these 31 CHIEF EXECUTIVE'S REPORT Human Resources Management Programmes Conducted by Local Training Institutions During the year a total of 35 employees both senior and junior staff attended courses ranging from l to 5 days at CAGI (2 1), UG (6), NARI (8).

Courses attended included ISO 9000 , Man age m e nt of M a inte nance , Introduction to Autocad, and Rodent Control, among others.
Vacation Attachment As part of the Corporation's outreach programme, vacati on attachments were provided for a total of22 students from UG (9), GTI (3) and the Secondary Schools ( 10) in the head various office and its anc ill ary unit s. T hese attachments were for a 8 week period.

departments within the Overseas Training Fourof the 5 cadets who commenced studies at overseas U n iversities (UK, Austra li a) completed their degree programmes and returned to Guyana in 1996.
An additional 4 cadets ( I Undergraduate and 3 Post-graduate) commenced studi es at Universities in the UK during 1996.

The 2 Regiona l Ins trume nt Engi neers, Dernerara and Berbice attended a 5 days training couse sponsored by Weigh Tronix Inc of Minnesota, USA .

Efforts have been directed at resuscitating all Community Development Centre Councils and to this end a new Constitution was adopted.
A 2 day social skills seminar was held for 25 youths selected to represent the nation at the under 15 years' level - 19 cricketers and 6 table tennis players.

Sports Once again notable successes were achieved in the area of sports.

However, it was noted that there was a tapering off of enthusiasm.

This did not hold true for Executive Staff who participated full y in the softball for Executive Staff Competition which was won by Head Office.
This year we participated for the first time in a Fema le Softba ll Competition and won the Penzoil trophy.

in In addition 2 of our athletes were selected to participate th e "Go G uyana Run Marathon" while 5 other players were selected for the National Under 19 team for the Inter-Guyana Games.

Employee Services, Ex-Gratia Pensions Ex-gratia persons were approved in 1996 for 50 l retiring employees who have served on Estates for over IO years.
Community Developm ent Community Centres Medical & Health Services Primary Health Care Activities at all Community Centres continued to be deve loped.

These inc luded Hea lthy Lifestyle Workshops, Cricket, Sewi ng, Cooking and dancing classes among others.

Wales did not achieve the objective of rebuilding its Community Centre.

However, despite this, several activities were held and v isible sig n s of v ibr ant commu ni ty involvement were sustained throughout the year.
The preventative approach to care and initiatives to foster hea lthy lifestyles were central themes of the intervention strategy of The our Medical and Health Services.

continuing controls at Primary Health Care Centres have continued the 1995 trend of a drop in the use of the centres.

Disease Trend In comparison with 1995 the 10 most com mon illnesses encountered were: 32 CHIEF EXECUTIVE'S REPORT Human Resources Management considera has been relegated has been relegated bly.
It should be noted that out of the first ten.

that Hypertension to No.

2.

In the ovcral I statistic.

hypertension had decreased stress This is indeed a good sign demonstrating people arc no\\ coping with and managing stress.

Heart Disease from 8.

I lowcver, there was an increase This may be attributed diagnosis i n cases ol'hcart to an i n c r cas e i n attendance at clinics.

is t h a t disease.

has been relegated and intensified the overall picture to No.
I 0 Maternal and Child Health of' this service reflecting The utili/ation decline.

prO\ ided by GO\emment of food and monetary at Ministry ofl lea Ith Clinics.

improvement has continued in the service and the distribution to supplements by SIMAP Pharmaceuticals In 1996. the supply of Pharmaceuticals Health Centres times re-allocations were made in order to prevent to monitored and at to the other shortages.

from one £:state was closely One 1996 1995 I.

2.

3.

4.

5.

6.

7.

8.

9.

10.


Mellitus Rcsp1ratof) I lypcrtens1011 Diabetes A11hritis Dermatitts lnfluen1a Peptic Diarrhoeal Anhrtt1s I kart Disease Tract lnfrctt0n 2 3.

4 I 0 c;;;tn.

:ss Hypertension Respiratory Diabetes lnfluenLa Dennat1t1s Arthntts Diarrhoeal I kart Disease lnJUrlC\ Ulcer D1sca..,e Mellitus Disease Disease Tract Infection e.g.

Albion.
Albion.

and LBI/Diamond some locations Uitvlugt were occasional essential 11 ypcrtensive there shortages of items such as Anti- and Analgesics.

INDUSTRIAL RELATIONS Work Stoppages fell by 23 ° o from the The number of strikes/work stoppages le, cl 111 1995, but the number of by 25° o.

This reflects lost increase in the number or employees in stoppages, and longer manday-; both an increase participating duration.

from the first IO is injuries.


absence A notable reflecting lower incidence accidents requiring treatment Centres.

or major at Health (R.T.I.)

Tract Infection Respiratory high and when combined concern.

This em ironmental attributable increasing is ranking with asthmatics.

1s of may be in 1996 disease to the long dry �eather the dust content in the atmosphere.

The Industry's Sugar Production 275.705 previous I 0°,o.
with 2-t9,840 of year, repre enting an increase was for the tons, compared Production Incentives continues to seek ways of the working environment in The Corporation improving order to minimise Another important is overcrowding in the home.

the incidence contributory of R.T.l.

factory A total of 181 days were paid to employees tax-free Weekly Production compnsing the second.

76 for the I st crop and I 05 for as Incentive.

111festation.

In addition.

were paid as tax-free Incentive.


188 days (average 23.5 E tate) Annual Production Dermatitis continued to rank No.

5, this is mainly due to fungus and parasitic The humid, du ty atmosphere poor personal perpetuate the spread difficult to control of this disease, and treat.

coupled making it with hygiene and overcrowding, Negotiations for Wages/Salaries Increases General salaries meetings negotiations were protracted wages and and costly (21 for increased and $2M).
The negotiation s 33 CHIEF EXECUTIVE'S REPORT Management Human Resources of a historic in in the signing culminated Memorandum of Agreement finally two-year 1996.

October 12 This Agreement 1/4% and 11 % across-the-b for 1996 and 1997 respectively; 2 to 5°/ci merit increment vely.
rcspccti for an average oard increase and a 4 1/2% and for 1996 and 1997 provided in the form of of information, dialogue and sharing attitudes continued changing greater so that issues can be looked at more objectively, r e m u n e r a t i o n accompanied restrictive and b e n e fi ts can b e by some willingness practices.

to change and demands for increased Causes of strikes We will have to continue direction higher attendance costs of production to achieve and lower and productivity are to succeed.
if the changes necessary our fo,us in this I � 1.Pricing 338 325 293 159 1993 1994 1995 1996 Attendance 2.Acceptability of Work 86 94 91 138 3.Disciplinary Issues 13 I!< 16 18 4.Other Reasons 8 9 12 5 to 1995, 1996 showed an 8% In 1995 the Compared increase in attendance.

employment level was 23,819 with approximately 4.5 million 1996 the employment number was reduced 14'% ( to 20,492) mandays.

mandays with almost 4 million by recorded.


Total 445 446 .t 12 320 Productivi(v Other reasons particular refusal means of transport indu<lc<l to traYcl by a Compamtive Costs of Strikes 1990 1991 1992 J l)l)3 1994 1995 1996 in production 1996 also showed an increase level moving from 230,808 in 1996 (exclubing Using the employment years, 1996 showed an increase numbers for both of 27% in the in 1995 to 252,923 cane farming inputs).

productivity rate per employee, .


1mprov111g employee in 1995 to 12.34 in 1996. from 9.69 tons sugar per .

351 343 -145 446 412 320 Costs 222.225 117.288 I 98.582 126.233 71.984 79.993 99.762 511 1.863 664 566 353 499 588 __j_ Attitmlio11al Changes operations that we are efficient is aware of the need to review our various The Corporation and restructure ensure a review the future.
This will include organisation and work practices, must be geared to meet the competitive challenge of both both of which to and sustainable in of the new milletmium.

an overall Notwithstanding increase employee employment costs per ton sugar (excluding of 12.5% for the piece-rated and 16.

7 5°/c, for the time-rated, 111 \996 were fanners) wage to $39.000 , the need to reduce of $7,730/ton in 1995. a or 20%.
Never­ $3 L270 compared reduction theless to the level of US 13c per pound from level of abour US2lc per pound is its present for the industry.

a critical target costs of production ' \work Stoppage r:8 Man<lays lost Wages Lost � (GS)' 000 Hence.
attempts and initiatives aimed at 34 CHIEF EXECUTIVE'S REPORT Management Human Resources Productivity Statistics 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 Production 203,252 154,884 154,307 121,986 148,654 226,907 224,711 233,871 230,888 252,863 Tons Sugar /Employee 8.50 6.70 6.58 4.77 5.32 8.08 8.07 9.56 9.69 12.34 Mandays Per Ton Sugar 20.78 25.9l 25.96 34.59 33.21 L_ f 22.37 20.10 18.61 17.73 14.61 l 1993 1994 1995 1996 Agriculture-Lost Time Accidents 5333 4829 3295 324 Mandays Lost 54039 49843 32495 32343 Factory -Lost Time Accidents 200 145 139 107 Mandays Lost 2583 1535 1730 1411 TOTAL-Lost Time Accidents 5533 4974 3434 3348 for the over the period.
records decline show a steady factories have seen acumulative saving on the 1993 fig u r e a considerable occur in time since most accidents Factory eight operating Field Accidents of 47436 mandays for the period, production the cane cutting The Field and Factory as the main units contrast production Labour Force.

of the General gangs.


and other piece-rated with the rest sharply savmg m TOTAL-Mandays Lost 56622 51378 34225 33754 1993 1994 1995 1996 General- Lost Time Accidents Mandays Lost 43 54 470 730 OCCUPATIONAL AND ENVIRONMENT HEALTH, SAFETY of an Estate Safety Culture to be the goal and the education staff and employees alive to level of role perception The development continues of management achieve continue.

Committee this objective.


the desired The Estate Health and Safety to provide continues the focus for A draft Environmental being developed.

Policy Statement 1s of Zero Tolerance of accidents.
Councils to support the with continued, Safety Manual to a on the techniques appropriate Training/Education programmes corporate emphasis strategy The use of the Workers' and Field level is being examined with particular Impact Assessments now being supported statistical The following since 1993 :- body of data on illnesses and accidents.

and Audit Systems are by a growing concern for their frame ofreference.
data indicate at Factory accident the trend 35 REPORT ) CHIEF EXECUTIVE'S TEN YEAR SUMMARY of Factories Number Acres Harvested Tons Cane Milled 1'0001 8 8 85,823 88,303 91.372 2,48 0 2,548 2,019 8 8 8 8 8 98,142 104,670 105,586 96,592 3,172 3,149 2,909 3,172 Yield: Tons Cane/Acre 28.90 28.58 22.10 32.31 3 0.40 27.88 29.82 Sugar Tons Cane/Tons 14.80 15.41 15.54 13.07 12.41 11.56 11.50 Tons sugar/Acre 1.95 1.91 1.42 2.47 2.45 2.41 2.62 Sugar Production (tonsl Molasses Production Home Consumption 1'000 galsl Sugar (tonsl Molasses ('000 galsl Export: Sugar (tons) Molasses ('000 gals) Sales Price/Ton (G$) 1,626 8,070 14,708 Local Sugar (G$M) Average Export Sugar 1G $) Price/Ton Average (G$M) Molasses Price/ Gal (G$l Average (G $ Ml Expenditure Cost (G$Ml Employment Share (G$Ml Profit Materials and Other (G$M) Operating before Result Interest (G$M) Interest Expenses (G$M) (Net) (Deficitlbefore Surplus Tax (G$Ml Local Subsidy (G$M) Average Exchange Rate G$/US$ Mid Market STATEMENT OF EMPLOYMENT & COMMUNITY COSTS DIRECT EMPLOYMENT BENEFITS Wages and Salaries Incentive Payments* Other Employment Be 1993 1994 1995 1996 G$M G$M G$M G$M 5,521 1,380 1,863 442 6,566 7,556 3,591 3,438 ation and Levies nt Rates and Taxes les Subsidy Special Funds 16 27 136 120 121 42 44 3,282 34
 331 114 41 3,769 3,766 3,802 ---� 10,335 11,322 13,239 - 27,855 24,463 242,640 252,615 37 38 0 Distribution of Value Added 1996 • Employee Benefits (36.9%) • Miller (other costs) • Cane Farmers (29.5%) } Government I .Government • includes I Taxes, Depreciation & R� (5.5%) (28.1%) 37 1995 (32.5%) (5.4%) q;;,J j l0: 592 - 2 - 575.92 gr= ...!Vo: 592 - 2 - 6 7257 AG:71/ 98 9J.
rJ.

@= f002 6.

'J~./t,,ut X~ ,§~ vn §uymna .

./..91.

17 March 1998 REPORT OF THE AUDITOR GENERAL TO THE MEMBERS OF GUYANA SUGAR CORPORATION INC. ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 1996 Chartered Accountants, Deloitte and Touche, have audited on my behalf the financial statements of Guyana Sugar Corporation Inc. for the year ended 31 December 1996, as set out on pages 2 to 13.

The audit was conducted in accordance with the Financial Administration and Audit (Amendment) Act 1993.
The Financial statements are the responsibility of the Management of Guyana Sugar Corporation Inc. My responsibility is to express an opinion on these statements based on the audit.

As required by the Financial Administration and Audit (Amendment) Act 1993, I have reviewed the audit plan and procedures, work papers, report and opinion of the Chartered Accountants.

I have also had detailed discussions with the Chartered Accountants on all matters of significance to the audit.
I conc ur with the opinion , as set out on page 1, of Chartered Accountants , Deloitte and Touche.

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~ "~UDITOR GE~~l~L ,, OFFICE OF THE AUDITOR GENERAL 63, HIGH STREET KINGSTON GEORGETOWN GUYANA ,.,, ' REPORT OF THE AUDITORS REPORT OF CHARTERED ACCOUNTANTS DELOITIE AND TOUCHE TO THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF GUYANA SUGAR CORPORATION INC. FOR THE YEAR ENDED 31 DECEMBER 1996.
We have audited the financial statements set out on pages 40 to 50 which are in agreement with the books of the Guyana Sugar Corporation Inc. and aave obtained all the information net explanations we have required.

These financial statements are the responsibility of e ma nt of the Guyana ugar Corporation Inc. Our responsibility is to e press an opinion on se inanc,al statements base a arr audij.
We have conducted our'1!udit ih accordance with the office of the Auditor General's a · · g standards )Ind other generally a~cep ed auditing standards.

Those standards require that we plan and perfor the aud1t to obtain reasonab e as~urance about whether the financial statements are free from material m1 statements.

An audit inclijdes ex mining, on a test basis, evidence supporting the amounts and disclosures on e fina cial statements.
An audit also includes assessing the accounting principles used and significant estimates made py Managem nt as well as evaluating the overall financial statement presentation.

We believe that o r audit provides reasonable basis for our opinion.
I our opinion, the financial statements referred to above present fairly, in all material respects, the sta e of affairs of the Corporation as at 31 December 1996 and its results of operations and cash flows for the year then ended and have been prepared in accordance with the Companies Act 1991.

DELOITIE & TOUCHE CHARTERED ACCOUNTAN 77 Brickdam, Stabroek, Gear etown, Guyana.
17 March 1998 39 ) PROFIT & LOSS ACCOUNT For the year ended 31 December, 1996 Sales Net Profit before taxation Taxation Notes 3 G$000 19.11 9,516 674,130 1995 G$000 17,347,877 702,489 382,085 1,527,482 223,947 1,751,429 ying notes form an integral part of these financial statements" I ' 4 0 BALANCE SHEET As at 31 December 1996 Share Capital Authorised Ordinary shares of G$1 each Issued and fully paid 498,536,775 Ordinary s R Director G. N. Hilary Director Notes G$000 1995 G$000 500,000 500,000 498,537 6 12,592,487 10 143,636 12,736,483 7,790,340 304 4,945,839 12,736,483 7 8 9 41 CASH FLOW STATEMENT For the year ended 31 December 1996 1 Net cash inflow from operating activities (Note a) G$000 G$000 G$000 1,137,871 1995 G$000 2,134,412 Returns on investments and servicing of finance Interest received Interest paid Taxation Taxes lnvestinq activities eayments to acquire tangible fixed ass ts Receipts from sale of tangible fixed assets (5,479) (243 136) (1 ,188,491) (2,511,925) 22,511 16, 186 (1, 165,980) Net cash outfl w bet re financing (276,724) Financing Loan draw~own Repayment of loan Rehabilitation apd Development Fund 0 (153,579) 2,831,363 Net cash inflow from financing 2,677,784 Increase/ (decrease) in cash and cash equivalents (Note bl 2,401 ,060 "The accompanying notes form an integral part of these financial statements."
839,174 11,532 42 NOTES TO THE CASH FLOW STATEMENT a. Reconciliation of operating profit to net cash inflow from operating activities: Operating Profit Interest paid (net!

Depreciation !Profit) / loss on dis llncreasel/decre .sal of fi xed assets su r and molasses e in debtors and prepayments se) in creditors and accruals t levy rued interest • , ow from operating activities b. Ana~· of changes in cash and cash ewM*!
nts during the year Bal._ at 1 January inflow 1995 G$000 702,489 85,566 1,088,381 94,703 (176,177) G$000 674,130 5,479 1,367,860 (21, 9) ,092; ( ,9431 71 ,236 (875,8201 (208,997) (200,000) (36,867) 1,137,871 382,499 2,401,060 2,783,559 c. 1996 G$000 1995 G$000 2,783,559 0 846,623 (464,124) 2,401,060 43 ) NOTES ON THE ACCOUNTS 1.
SIGNIFICANT ACCOUNTING POLICIES (al Accounting convention The accounts have been prepared under the historical cost convention as modified for the revaluation ~Q Q with International Accounting Standards of certain fixed assets and the accounting except where specifically stated.
(bl pensation price) less provision for ay 1976 are stated at the book values of the previ depreciation and amor All fixed assets acquired after that date are stated at cost less provision f s of book values over compensation price referred to in the preceding paragraph ening balance of the valuation reserve.

reciation is provided on freehold land, capital work-in-progress and livestock.

land is written off as and when the titles are relinquished.
ciation on other assets is provided on the straight line method calculated to write off each s estimated useful life as follows:- Buildings easehold properties d expansion costs machinery and equipment hicles Over 50 Years Over the lives of the leases From 5 to 10 years From 5 to 16 years Over 4 years Over 3 years (c) Inventories Sugar and molasses are valued at the lower of cost of production and estimated realisable value less deductions for sugar industry special funds contributions, shipping, and selling expenses, where applicable.
Where markets are identified for sugar and molasses, the net realisable value is used.

44 NOTES ON THE ACCOUNTS 1.

Significant accounting policies · continued (di Livestock Livestock animals is classified either into account and taking the types of animal.

age and market on the nature value.

as current or fixed assets depending and purpose of the (e)Research and development Research and development expenditure is ch •enue in the year in which it is incurred.
(fl Foreign curren 1iansacti&NII Foreign M,Wf such t1W111Clfon the ratesitf xchange loss aCCIIII s. At the balance ruling ns are recorded in Guyana sheet date, foreign at that date and resulting dollars at the rates of exhll!llfllllll e date of currency assets gains and losses and lia s • ..... ted at are recognised in 1111 ,rofit and (gl Sales SIIII represent sugar ndustry the amounts special funds contributions, shipping from the sale of sugar and molasses expenses produced and export and selling earned sales levy.
during the year, IWt of (ht Pins on Scheme (i)The corporation participates in two contributory pension and Guyana Sugar and Trading Enterprises Pension funds which are separate 1992 for Demerara administered done at 31 December from the Corporation's Sandbach Pension Scheme.

for its employees The contributions finances.

Scheme revealed · Demarara are held in The last actuanal that tt)e Schtme schemes Sandbach trustee valuation was in deficit of $2.BM.
valuation a past service The actuarial Scheme revealed recommended current rate of 7% of member's in excess of 2,880,000 per annum.

done at 31 December 1995 for Guyana Sugar and Trading Enterprises Pension deficit of $314.2M.
To meet the deficit of the Schema the actuaries that the participating companies to pay contributions to the Scheme at the continue up to $2,880,000 salaries per annum plus 13% of member's salaries (iii Employees pensions considered who have retired and are not members of the pension schemes are paid ex-gratia which are recoverable to be recoverable from the Sugar Industry for in the profit are provided and loss account.

Price Stabilisation Fund.


Amounts not (ii Def erred Taxation Deferred taxation not crystallise December amount is not provided in the foreseeable future 1996 the major originating not provided for amounted for because timing differences to $804M ( 1995 $636.6M).

there is a reasonable in view of the coporation's probability expansion that a liability will programme.

At 31 arose from capital expenditure and the net 2.
INCORPORATION Guyana Sugar Corporation Corporation's name was changed Limited to Guyana Sugar Corporation Inc. was incorporated on 21 May 1976.

On 28 February 1996 the 45 NOTES ON THE ACCOUNTS 3.
SALES ANO EXPORT LEVY Sales Sugar and molasses Export Sales Levy Amount payable (P. Remitted by G 6$000 1995 6$000 23,760,616 20,248,081 of the Financial Administration and Audit Act, the Government of Guyana has 95 6$6,960,000) of the Sugar Levy payable under the Sugar Levy Act of 1974 (a 19, 119,516 a IT BEFORE TAXATION ging- remuneration (note (bl ) stment (see note 9 (b) ) 6$000 674,130 270 380,297 1,367,860 4,700 35,700 71,240 357,328 (65,761) 5.
TAXATION Corporation Tax at 35% Property Tax 1995 6$000 232,872 149,213 450,183 382,085 46 NOTES ON THE ACCOUNTS 6.
CAPITAL RESERVES la) (bl © (di Rehabilitation and Sugar Industry Development Rehab, itation Fund Fund Valuation Other Totals G$000 G$000 G$000 6$000 6$000 At 1 January 1996 6,521 ,850 34,503 47,435 907,730 7 511,518 Additions during the year 2,841,100 0 Transfer o (9.737) 0 o o o 2,841,100 (9,737) At 31 December 1996 9,362,950 24,766 47,435 907,730 10,342.88 (a' An agree ent was reached between the Ministry of Finance and the Corporation to set up a Rehabilitation and Development Fund from levies payable.
(bl This repre ents amounts received by the Corporation from the Sugar Industry Special Funds for rehabilitati n work carried out on the Corporation's factories.

(c) This amount ref resents the surplus of the net book values over the consideration paid for the acquisition the Corporation's assets on nationalisation in 1976, less disposals.

(di i) G$ 15.76M rep ents monies received from the Government of Guyana for the financing projec m the Corporation's diversification programme.
ii) G$ 37.87M represents the value of the net assets of Demerara Sugar Terminals Limited, which ceased trading in 1991 but continued as a department of the Corporation.

iii) G$ 839.21 M represents the value of loans and accrued interest assumed by the Government of Guyana.
iv) G$ 1.32M and G$ 13.57M represent the value of the net assets of Guyana Agricultural Products Corporation and Demerara Sugar Company Limited which were acquired by the Government of Guyana and the assets transferred to the Corporation.

47 NOTES ON THE ACCOUNTS 7.
FIXED ASSETS Cost or valuation At 1 January 1996 Additions Disposals Transfers expansion cost 6$000 31,905 57,879 45,798 equipment 6$000 8,059,591 1,222,654 ( 52,152) 543,368 4,316 Work-in- progress 6$000 2,176,611 ( 159, TI4) ( 661,923) Total 6$000 10,927,300 1,188,491 52,152) ( At 31 December 1996 4,316 135,582 9,773,461 55,921 55,574 12,063,639 Depreciation At 1 January 1996 Charge for the year Retired on disposals At 31 December 1996 Net book values: At 31 December 1996 At 31 December 1995 - 2,955 410 3,365 12,247 10,808 2,903,724 1,343,011 ( 50,940) 23,055 ~~ - 4,195,795 Cl) -;i:f 2,956,379 1,367,860 50,940) ( 4,273,299 1,355,574 7,790,340 2,176,611 7,970,921 NOTES ON THE ACCOUNTS 8.
Investments limited lochaber 1,280 Ordinary shares of $20.00 each at cost Note !al G$000 1995 G$000 23 23 Development shares Corporation of $5.00 each.

limt iit Cane Farming 18,500 'B' Ordinary ( T his Company made for possib1e a sing losses is in liquidation and provision has been .
l 3 31 Development Company limited livestoc 55,000 Ordinary Shar"es of $1.00 each · at cost NatioQ 200,000 I Bapk of Industr y and Commerce limited s ock units of $1.00 each · at cost 50 200 304 la) T he Coporation s at 31 December has a 36.8% holding in lochaber limited.

1 996 the reserves of Lochaber Limited were $101 million.

9.
(al Net current assets !9 (bl) Inventories Cattle Sugar and molasses Trade debtors Ot er debtors Cash on hand and at bank and prepayments and accruals liabilities Current Trade »reditors Other creditors Export sales levy Accrued interest loans repayable Taxation Bank overdrafts within one year (unsecured) G$000 1995 G (bl Inventories Gross Less: Provision Net tor stock obsolescence 4,508,193 292,247 4,215,946 5,873,427 1,293,389 4,580,038 49 ; NOTES ON THE ACCOUNTS Since 1992 the Corporation has been providing against stock obsolescence, resulting in a provision of $1 ,293 million as at 31 December 1995.
Following the introduction of new inventory software during 1996, the Corporation carried out a comprehensive review of inventory values and obsolescence, in addition to the normal physical stock counts.

As a result of this review, the provision of $1,293 million and an additional $88 million was written off against stock.
In accordance with the Corporation's policy f and technology, a furthe profit and loss acco':'f,.M"~ 10. o the development of new equipment ~ ing in a total charge to the 21 lov rnment of Guyana debenture redeemable in the year 2000 11.

C4P TAL COMMITMENTS AND CONTINGENT LIABILTIES Expen ·ture authorised by the Directors b not ommitted ' G$000 143,636 G$000 7,771,00 0 75,424 12.

The Corparation is at present being managed by Booker Tate Limited.

13.
13.

PENDING LITIGATION There were several actions for which the liability of the Corparation, if any, has not been determined.

50 ----- NOTES