Gov’t and EU sign consultancy agreement to review sugar industry model

Government and the European Commission signed a consultancy agreement for the development of a financial and economic model for the sugar industry, including the feasibility of ethanol production, at the Ministry of Industry, Commerce, Agriculture and Fisheries’ New Kingston offices yesterday (May 10).
This consultancy agreement forms part of the Accompanying Measures for Sugar Protocol (AMSP) 2013 Financing Agreement that was signed between the European Commission and the Government of Jamaica, which includes an allocation for support to mobilize specific technical assistance expertise.
Under the consultancy, a financial and economic model for the sugar cane sector in Jamaica, a study on the ethanol production in Jamaica will be developed and a review will be conducted of the existing cane payment formula. In addition, workshops will be conducted with relevant stakeholders to disseminate the results of the project.
Speaking at the signing ceremony, Hon Karl Samuda, Minister of Industry, Commerce, Agriculture and Fisheries, who signed on behalf of the Government, welcomed the European Union’s support and stressed the importance of the consultancy, noting that with the inclusion of a feasibility study on the production of ethanol it is hoped that this will add to the commercial viability of the sector.
He further noted the inclusion of a review of the sugar cane payment formula in the consultancy agreement. This aims to ensure that proceeds from the sale of sugar cane are properly apportioned. Minister Samuda also stressed that in order to have a successful industry, all the players, including the farmers, must have a share in the rewards.
The revision to the cane payment formula is a recommendation of the last Sugar Industry Enquiry Commission undertaken during the period May 1 to September 30, 2010
Noting the European Union’s commitment to partner with Jamaica in its development, Head of Delegation of the European Union in Jamaica, Ambassador Malgorzata Wasilewska said, “Ahead of the expected changes in 2017 and beyond, we hope that the results of the technical assistance will lead to effective options to support the sector through this change and suggest different approaches to the industry to make it commercially viable.”
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