Fixing GuySuCo’s problems

first_imgDear Editor,GuySuCo’s current situation could be successfully fixed in a timely manner if there is the political will and good corporate governance is undertaken.Firstly: the bank loan backed by the corporation’s assets is questionable, not only because of the uncertainty of the pension fund’s viability, but also due to the form of the financing. A physical inventory needs to be undertaken, and a fiscal audit is also needed to support a clear understanding of the asset base to be used for securing financing. In addition, a line of credit should be pursued with Government’s backing to minimize the interest payments required.Secondly: labour concessions during the turnaround period should be negotiated, in order to reduce the cost of goods to allow for the reopening of the closed and neglected factories. In addition, an organisational capabilities assessment is required to ensure there is a clear plan to improve internal processes for improved front end operations.Thirdly: the acreage utilisation needs to be optimised in order to increase field yield rates to best in class levels, as seen by our successful international competitors. This will require limited investment. Factory maintenance improvement plans based on efficiency assessments will also provide clear guidance for improvement plans related to production costs and improved throughput. Such a fresh eyes’ audit needs to be undertaken in order to develop a clear investment plan for the industry. This should be pursued to obtain benchmarked levels.Fourth: the pricing of goods and services provided by the corporation needs to be revised, allowing for increases that reflect not only inflation rates, but also the increased demand associated with the limited supply. Market prices are currently not reflective of adjacent and competitive products. The mindset of bulk sales vs. consumer sales needs to be shifted in favour of the latter, to truly capture the pricing opportunity in the market place. A clear pricing strategy going forward needs also to be outlined.Based on my professional experience, the above outlined approach would clearly walk the turnaround initiative through the P&L, better identifying the financing needs and their required timing to support a successful turnaround initiative for the sugar industry. In addition, this approach would ensure a successful undertaking of making the sugar industry profitable in the current competitive environment.Best regards,Jamil Changleelast_img read more

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EMERGENCY MEETING IN ARDARA TO DISCUSS JOB LOSSES

first_imgA meeting will be held in Ardara tonight to highlight job losses in the area and to plan ways of creating new jobs.The meeting was called in the wake of the announcement of job losses from Gallaghers Bakery, with a substantial number of employees at the bakery finishing today.Tonight’s meeting, which is expected to be attended by a number of local TDs and councillors, has been called by traders and community representatives to discuss future strategy. Ardara Traders’ Spokesperson Stephen McCahill says more and more young people are leaving the area.“We have to step back and take a long hard look at where we are going. There is no town or village that is not affected.“All you have to do is to look at any local football or GAA team and see the number of young people who have left them because they have been forced to emigrate,” he said.EMERGENCY MEETING IN ARDARA TO DISCUSS JOB LOSSES was last modified: April 1st, 2011 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window) Tags:Ardarajobslast_img read more

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