A scene at the Frome sugar factory. Scrap-metal thieves are threatening the sugar crop there. - File

The struggling sugar industry is being plundered by scrap-metal thieves, to the tune of millions of dollars, a report prepared by SCJ Holdings has revealed.

According to the report, "From July 2009 to date, the company estimates its losses to be more than $23.6 million. The replacement cost is in excess of $8.3 million and production losses of $15.3 million."

The report further indicated that human greed appeared to be conspiring with the forces of nature to kill the crop season on the eve of its start-up.

SCJ Holdings stated that the illegal scrapping of metals had been derailing the drought-mitigation efforts in the lead-up to harvesting of the sugar crop early in the new year. The SCJ Holdings report warned that this could lead to increased cane fires.

SCJ Holdings reported that the unprecedented drought conditions at Monymusk and Bernard Lodge dictated that the irrigation systems on these estates operate at optimum levels to provide water for the fields.

"Keeping the systems operating is being frustrated by vandals who prey on the metals and electrical components (especially copper cables)," the report said. "It is becoming unsustainable to repair these systems as fast as they are vandalised."

Critical components

The report stressed that it was costly to replace these parts and the interruptions were negatively affecting cane production.

SCJ Holdings said it operated outstations to which small cane farmers delivered their cane. From these stations, the estate trans-loaded to the factory.

"The scrap-metal thieves have begun to remove electrical and metal components from these outstations. This is going to seriously disrupt the harvesting programme at Frome," the report warned. "If this is not addressed, cane fires will increase, disrupting the entire harvesting programme."

SCJ Holdings reported that it was importing the critical components at very high cost, only for vandals to steal them and sell to the scrap-metal trade at a fraction of the purchase price.

The company said it had called on the Ministry of Agriculture to take urgent action to stop the sale of the valuable components, given the damage being caused to the company.

The report stated that the losses were directly related to the scrap-metal trade, where vandals removed items, such as telephone cables, electrical transformers, cables and irrigation pump motors from the estates.

It added that the problem was exacerbated by the pattern that, as soon as stolen components were replaced at the locations, vandals re-entered and removed them. "In fact, it is our understanding that the Jamaica Public Service Company and the telephone providers are also experiencing similar challenges."

The SCJ is calling for the banning of copper-based electrical wires. "It is our belief that in order to assist with remedying this situation, the export of electrical materials, especially copper-based ones, should be banned.

"For the company, this problem exists primarily at the Monymusk and Bernard Lodge Estates where, to date, vandalism of critical irrigation equipment amounts to $8.3 million. Further, all replacement components have to be imported with lead time on deliveries of eight to 12 weeks."

Sugar for sale

The report stated that SCJ Holdings had been mandated by the Government to operate Frome, Monymusk and Bernard Lodge Estates, and to produce a minimum of 79,000 tonnes of sugar for sale to Italian sugar producer, Eridania, within an approved cost construct.

The project started in July 2009, which was considered to be very late, fuelling an aggressive and focused approach to ensure that this mandate would be fulfilled.

Three of the focus areas in pursuit of this goal are:

A factory-upgrading programme

Extensive sugar-cane production

Upgrading of harvesting facilities.

The report noted that parameters set in relation to the factory upgrading were ahead of target, both in terms of costs and factory readiness.

The company said it had installed a costly security system as a preventative measure. Since the start of the month (December), theft has increased.