SPEAl<ING NOTES
FOR
PRIME MINISTf.R
RT. HON. P.J. PATTERSON
AT
LIVE & DIRECT
FROME
ON
THURSDAY, MARCH 18, J 999
Delighted to visil al this important time in the history of rountry's sugar industry.
fmponant for me to get first hand look al what h L~lking pfate in lht> indu~hYt on whirh
murh of our economic future is bc1scd.
PROBLEMS
• Implementation of re--structuring plan delayed
• After share-holders declared their in.lbiliry h) fin~mcQ the venture
• Comp,my was insolvent
• Agricuftural Restructuring Comp,my afong with flnanci~II suppllrt of AC Bank,
began operation fast SepHmihnr.
• Some $ I . 7 billion (-ommilled to rcsrne the fe,mpany
• Working capital for 1998/99 ow, $ 300 million will be sp<mt tor c. 1. pital ~md
maintenance
Funds used to put in place improvements such as;
• Vertical crystaliser
• Upwgr~u.11ng of two centrifugals
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PERFORMANCE
ENCOURAGING SIGNS OF IMPROVEMENT
• Production 15,000 tonm.~s ahe;1d of this time last year
FROME'S PERFORMANCE PARTICULARLY PLEASING:
• Projected loss bi?ing com;f der~bly reduced
• A good sign since Wf'. can not continue Lo suffer lo.\\es
Improvements must come through tight managt~mcnt ~md a genuine p4.1rtnership between
management, farmers, workers, and uniom-
• Technical expertise and experience are in ptKe
IMPROVEMENTS
• 30,380 tonnes produn~d wit.h 46% of crop rcapt'd
OverJII improvement of t~Kr0ty thmugh-pur
• Tonnes cane to tonnes sug,u from 12.83 to 11.62
Remarkable that last Saturday this ratio was 9. 97
• Product1on co.st reducet.1 from$ l.2 40 bimom to$ \.208 bmion
Marginal, but moving in the right din)nion
NEW APPROACH
■ Called 'PRODUCTIVITY THROUGH PARTNERSHIP"
"We're all in this thing cogeth(-r"
• If the country is to pro<ltKe target of 300,000 tonnes, rhe quality ~md quantity
or r,31,e must be improved
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THE. 'W[' FACTOR
Must remove historical mis-trust and suspidon between different
segments of the industry
F anners. workers. company, unions, communities, must develop the
attlcude chat the lndustry's sorviv ..1. 1 is in the best interest or all.
COMMUNITY OUT-REACH
❖ Planned programme launched tast Saturday
- Will enhance co11tmlmkations between work(•rs ,rnd man~ig~ment and
bring workers h.,lly into production tJrocess
M WiU invoJve farmers and communities
Sports programmes will he l'e··starled
WHAT WE N££D TO DO
• Improve cane quality
♦ Improve cultural pr~Klil~
• Deliver c,m~}S to factory in shorH•st pos.sibf e tinw
This wilf henefit' the fJrmer wjth better price, the factory
would pmdure more .sugar from the s~tme amount of Gme
WE MUST SUCCEED
But
"" The lnduscry is too vit,1I to be JllowNf lo f~1lter
► We all have a stake
, Government is doing its pan to demonstrate its confidence
r It is a ioh h..1r all of us
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