Sour sugar export - Jamaica facing heavy penalty

The problem-plagued sugar industry is facing more trouble in the wake of allegations that a substandard supply of the product was shipped to the United States last week. Leading players in the sugar industry are now scampering to determine the accuracy of the reports as Jamaica could be hit with a hefty fine if this is so.

Sunday Gleaner sources say 5,000 of the 7,260 tonnes failed several key tests in the US. Among the alleged problems are that 5,000 tonnes of the sugar churned at Frome fell well below the sweetness standard required. It also failed the colour and moisture-content threshold.

Agriculture Minister Dr Christopher Tufton has ordered an investigation into the reports that the poor-quality sugar was shipped from the Frome factory in Westmoreland as part of a shipment of 7,260 tonnes that was exported to the US last week.

"I have ordered a thorough investigation on the matter, and I await the report," said Tufton, who was being made aware of the allegations for the first time when he was contacted by The Sunday Gleaner.

"If this is found to be so, someone will be held accountable," Tufton added.

But Aubyn Hill, chief executive officer at the state agency, SCJ Holdings, which manages the Frome factory, told The Sunday Gleaner that he was not aware of any such problem with the sugar.

"I have spoken to Karl James and he has given me the assurance that the sugar that was exported was of the highest quality," Hill said. James is head of Jamaica Cane Product Sales (JCPS).

"I am also aware that you have been talking to Ambassador Heaven about the matter and he would have more details than me, so I suggest that you speak with him."

Below standard

When contacted, Heaven, the executive chairman of the Sugar Industry Authority (SIA), admitted that some of the sugar churned at Frome in the early stages of the present crop was below the required standard.

But Heaven could not say whether that substandard sugar had been included in the US-bound cargo.

"I am on the road now as we speak. I have been instructed to investigate the matter, to get all the answers and report to the minister," Heaven said on Friday.

"The United States refiners are particularly severe on such a breach, because (being) above the acceptable amount makes it difficult for their refining process.

"Because of this, the SIA has sought to ensure that all the specifications to that market are adhered to," added Heaven

According to the SIA head: "All our efforts have been focused on ensuring that we don't send any sugar that we have any doubts about. This would be a big blow if it is found to be so," said Heaven.

R. Markey and Sons, the company responsible for the quality-testing of all the sugar purchased by the leading US refiners, was not willing to give details of the specifications and penalties for breach of standards when contacted by The Sunday Gleaner.

"I must get clearance to speak to you. As a matter of fact, this is not something I will be discussing," said a supervisor, who refused to identify himself.

But local private-sector stakeholders were clear about the potential embarrassment and financial penalty that Jamaica could face if the tests carried out in the US confirm that the sugar did not meet the established standards.

"If this is detected, it will be a major embarrassment and will do great damage to Jamaica's reputation," said a leading farmer.

"What is going to happen is that the shipment is going to result in a large penalty, and that is where the whole industry is going to get a beating," the farmer added.

Sugar mixed

The private-sector interests claim that the sugar from Frome was trucked to the Reynolds Pier in St Ann and mixed with sugar from private producers Worthy Park and Appleton Estates to complete the shipment.

According to a local manufacturer, who spoke on condition of anonymity, this is testimony that the pool system, which is now employed by the JCPS, is no longer workable.

"The situation is that good producers are subsidising Frome for the poor sugar they are making," he charged.

"It is unfair for those of us who strive to maintain a high standard to now be forced to suffer," said the manufacturer.

He was supported by other major players in the sugar industry who claim that the root of the problem is the continuous use of "old and antiquated equipment" at the historic Frome sugar factory.

"The centrifugal baskets at the factory are in a terrible state and is the real cause of the problem, and SCJ Holdings has been aware of the problem and done nothing," a major player charged.

"What is baffling is that they have collected US$26 million from the supply deal (with British refiner Tate and Lyle) to fix up the factories, but nothing was done about it," alleged the sugar industry source.

Not informed

But Hill told The Sunday Gleaner that he had not been informed of any issues pertaining to the centrifugal baskets.

The situation at Frome was not helped by the passage of Tropical Storm Nicole late last year prior to the start of the crop.

Fields were inundated for days, destroying hundreds of acres of sugar cane at various stages of maturity.

The incidents of illicit cane fires, which have jumped from 76 last year to almost 150 so far this season, have not helped the factory either.

In 2004, the then Sugar Company of Jamaica was fined US$1.5 million by its American trading partners because of "poor-quality" sugar exported to that country.

That 2004 shipment of 2,500 tonnes of sugar was found to have too much dextran, an organism developed in stale cane or formed by the fermentation of sugar.

Although not harmful to humans, a count of over 250 units leads to a penalty for the producer based on the Sugar Marketing Supplies Protocol, which was developed out of the mutual interests of the refiners seeking reliable and predictable supplies of sugar.

Frome made 41,000 tonnes of sugar last crop, falling just short of the projected 45,000 tonnes.

For the current crop, SCJ Holdings is pressing for 55,000 tonnes from 645,000 tonnes of cane, some of which was reaped from the fields of the Long Pond sugar estate in Trelawny, which has suspended operations for the current crop year.

The case against Jamaica's sugar

It is alleged that when checks were done in the United States, 5,000 tonnes of sugar shipped from Jamaica contained:

1. An average polarisation (the quality measure that determines the sweetness) of 96.18 per cent, below the world standard of 98.00 per cent.
2. Moister content of 1.14 per cent, three times the .4 per cent international standard.
3. A colour of 5,606 international units (IU), surpassing the limit of 3,000 IU.
4. Soluble solids, which is accepted at 150mg per kg, came out at 428mg per kg.

source: jamaica-gleaner