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THE ORGANIZATIONS IN THE JAMAICA SUGAR INDUSTRY

THE ORGANIZATIONS IN THE JAMAICA SUGAR INDUSTRY. ARE THEY NECESSARY ?. THE ORGANIZATIONS. THE SUGAR INDUSTRY AUTHORITY (SIA) THE SUGAR INDUSTRY RESEARCH INSTITUTE (SIRI) JAMAICA CANE PRODUCTS SALES LIMITED (JCPS) THE ALL ISLAND JAMAICA CANE FARMERS ASSOCIATION (AIJCFA).

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THE ORGANIZATIONS IN THE JAMAICA SUGAR INDUSTRY

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  1. THE ORGANIZATIONS IN THE JAMAICA SUGAR INDUSTRY ARE THEY NECESSARY ? DTB,SPF,October 2007

  2. THE ORGANIZATIONS • THE SUGAR INDUSTRY AUTHORITY (SIA) • THE SUGAR INDUSTRY RESEARCH INSTITUTE (SIRI) • JAMAICA CANE PRODUCTS SALES LIMITED (JCPS) • THE ALL ISLAND JAMAICA CANE FARMERS ASSOCIATION (AIJCFA) DTB,SPF,October 2007

  3. ORGANIZATIONS (CONTD) • THE SUGAR MANUFACTURING CORPORATION OF JAMAICA LIMITED (SMCJ) • THE SUGAR PRODUCERS’ FEDERATION OF JAMAICA (SPF) • THE JAMAICA ASSOCIATION OF SUGAR TECHNOLOGISTS (JAST) DTB,SPF,October 2007

  4. THE SUGAR INDUSTRY AUTHORITY • STATUTORY BODY:– • SUGAR INDUSTRY CONTROL ACT(1970) • UNDER SECTION 4. • ADVISE THE MINISTER ON: • MATTERS OF GENERAL POLICY RE OPERATION AND DEVELOPMENT OF INDUSTRY. • MECHANIZATION IN THE INDUSTRY AND USE OF PORTS IN EXPORTATION OF SUGAR. (2) PERFORM ANY FUNCTION ASSIGNED TO IT UNDER THE ACT. DTB,SPF,October 2007

  5. SIA (cont’d) UNDER SECTION 5 • RESEARCH AND PLANNING UNDER SECTION 6 • MARKETING OF SUGAR AND MOLASSES DTB,SPF,October 2007

  6. SIA (cont’d) (1)Board comprised of representatives from: • Cane farmers • Sugar manufacturers • Trade unions • Ministry of Agriculture (2) Funded by a Cess paid by the sugar industry (3) Employs 24 persons DTB,SPF,October 2007

  7. SUGAR INDUSTRY RESEARCH INSTITUTE Under the Act, Responsible to SIA for: (a) Sugar and sugar cane research (b) Assessment of factory operations (c) Extension services and training Headed by a Director responsible to the SIA Executive Chairman, who also chairs a Committee of Management which includes representatives of cane farmers, sugar manufacturers and SIRI staff. DTB,SPF,October 2007

  8. SIRI – (cont’d) • Funded by SIA • Employs 71 persons. • Operates through three departments • Agricultural Services • Factory Services • Central Services DTB,SPF,October 2007

  9. SIRI – AGRICULTURAL SERVICES Agricultural Services through Extension, Engineering and Agronomy sections responsible for:- • Variety breeding and selection. • Studies on nutritional requirements of sugar cane. • Study and monitoring of pests and diseases. • The use of pesticides, herbicides and other chemicals. • Land and water management. • Development, usage and evaluation of field equipment. • Agricultural Extension Services DTB,SPF,October 2007

  10. SIRI – FACTORY SERVICES Factory Services through Engineering and Sugar Technology Sections responsible for:- • Monitoring factory operations and provide technicaladvice and services. • Conducting studies for increasing factory efficiency. • Development and evaluation of new technologies in sugar processing. • Research and development of sugar cane by-products. • Monitoring energy usage and factory efficiencies • Maintenance of core sampling equipment and monitoring of the cane payment system. DTB,SPF,October 2007

  11. SIRI - CENTRAL SERVICES • Provides accounting and administrative support for Agricultural and Factory departments. • It includes Economic and Information Technology Units and a Central Analytical Laboratory. • The Economics unit is responsible for: • The acquisition and analysis of data for determining the cost of sugar cane production • The acquisition, processing and reporting of statistical data relating to the field side of the industry. DTB,SPF,October 2007

  12. SIRI – CENTRAL SERVICES (cont’d) The Information Technology unit provides support for SIA and SIRI in: • Electronic data processing, preparation of reports • Development and maintenance of computer software programmes ,e.g. the cane payment system and the core sampler. • The Central Analytical Laboratory provides services primarily for: • The Agricultural and Factory Services Departments and also; • Carries out analyses for other entities within and outside the industry. DTB,SPF,October 2007

  13. SIRI (cont’d) • From the foregoing one can justifiably conclude that SIA and SIRI are in fact one organization and should be counted as such when looking at the number of organizations in the sugar industry. DTB,SPF,October 2007

  14. JAMAICA CANE PRODUCTS SALES LIMITED • A private company owned jointly by the All Island Jamaica Cane Farmers Association and the Sugar Manufacturing Corporation of Jamaica. • Board comprised of representatives from Cane Farmers, Sugar Manufacturers, Trade Unions and the Sugar Industry Authority. • Funded from proceeds from the sale of sugar and molasses. • Employs 12 persons directly and 379 others as contractors. DTB,SPF,October 2007

  15. JCPS – (cont’d) • An agent of SIA responsible for: • Marketing and sale of locally produced sugar and molasses on the local and export markets. • Provision and administration of crop loan funding for cane farmers. • Importation and sale of sugar on the local market. • The payment of the net sales proceeds derived from those activities. DTB,SPF,October 2007

  16. SIA, SIRI AND JCPS • The cost of operating SIA, SIRI and JCPS is deducted from the revenue from sugar and molasses before determining the price to be paid to the industry for sugar and molasses. • They provide a service for the entire industry and are a cost to the entire industry. • AIJCFA, SMCJ, SPF and JAST are member organizations providing services for their members and are funded by them. DTB,SPF,October 2007

  17. THE ALL-ISLAND JAMAICA CANE FARMERS ASSOCIATION • Incorporated on 25th December 1941 under The Sugar Cane Farmers (Incorporation and Cess) Act. • All registered cane farmers are members of the Association. • The Association is run by a Committee of Management. • Members pay a cess on each tonne of cane delivered to the factory. • Currently employs 22 persons. DTB,SPF,October 2007

  18. AIJCFA (cont’d) • Main objectives:- • To promote the growing of canes by cane farmers and the extension and welfare of cane farming as an island industry. • The preparation of or the settling of terms for cane farmers’ contracts with sugar factories, and labour. Aid in the settlement of disputes arising there from. • To buy and sell fertilizers and agricultural implements for the benefit of its members. • Make representations to the Government on any matter affecting the interest of cane farmers. DTB,SPF,October 2007

  19. THE SUGAR MANUFACTURING ASSOCIATION OF JAMAICA LIMITED. • Incorporated on 7th March 1974. • Membership. Estates manufacturing sugar.(6) • Board consists of a Chairman plus one director nominated by each member. • Funded by a cess paid by members. • No direct employees. Services provided by the Sugar Producers’ Federation of Jamaica DTB,SPF,October 2007

  20. SMCJ (cont’d) The main objective. • To make all such arrangements which the Company deems to be expedient for sugar manufacturing and for the welfare and benefit of sugar manufacturers and for this purpose to give assistance to and represent sugar manufacturers carrying out the business of manufacturing sugar in Jamaica. DTB,SPF,October 2007

  21. THE SUGAR PRODUCERS’ FEDERATION OF JAMAICA • Registered as a Trade Union on April 1,1971. • Membership - Sugar manufacturers and those estates that have ceased to manufacture sugar but continue to grow cane. (9) • Committee of Management to which each member nominates a representative. • Funded by a cess paid by its members. • Employs 6 persons, 3 of whom also provide services for SMCJ. DTB,SPF,October 2007

  22. SPF (cont’d) Some Objectives:- • To represent in industrial relations matters all corporations, bodies, partnerships and individuals being owners or lessees or in control of factories for the manufacture of sugar and/ or spirits or of cane growers in Jamaica of not less than 1,000 acres of cane. • To provide services in connection with Management Development, Training, Industrial Engineering, Work Study, Wage Structuring, Job Evaluation and other similar functions. DTB,SPF,October 2007

  23. SPF (cont’d) • To collect and circulate commercial statistics and information of all kinds provided that the Federation shall not release any information furnished to the Federation by any member without that member’s consent. • To promote by negotiation and/ or arbitration the settlement of differences and disputes between workmen and the Federation and/ or any of its members. DTB,SPF,October 2007

  24. SPF (cont’d) • To regulate the relations between workmen and the Federation acting on behalf of any or all of its members in their capacity as employers; • To promote good relations generally between employers and workmen in the Jamaican sugar industry; • To consider and discuss all questions affecting the terms and conditions governing the employment of workmen. DTB,SPF,October 2007

  25. SMCJ/SPF • The work of both SMCJ and SPF was prior to their formation performed by the Sugar Manufacturers Association. • Based on how they are now operated they can be regarded as one when looking at the organizations in sugar. DTB,SPF,October 2007

  26. THE JAMAICA ASSOCIATION OF SUGAR TECHNOLOGISTS • The Association was formed in 1937. • Five classes of membership:- • Full, Resident Associate, Non-resident Associate, Honorary and Life. • Full membership is open to: • Persons employed by estates which are full members of SMCJ or directly by SMCJ in a senior technical, or supervisory capacity in one of the following divisions. Field Practices, Chemical and Technical Control, Engineering, Management (including Accountancy) DTB,SPF,October 2007

  27. JAST (cont’d) • Senior technical and scientific officers in the employment of the Government of Jamaica; • Registered Cane Farmers who supply annually more than 2,500 tonnes of cane to the Jamaica Sugar Industry and persons employed by them in positions which would qualify them for membership if they were employed by an estate; • Such other suitably qualified persons as may be approved by The Executive Committee of the Association. DTB,SPF,October 2007

  28. JAST (cont’d) • Run by an Executive Committee elected by its members. • Funded by its members by way of an entrance fee nd an annual subscription • The Objectives:- • To promote the consideration and discussion of technical problems of the Jamaica sugar industry and to hold conferences at such places and times as the Executive Committee may decide. DTB,SPF,October 2007

  29. JAST (cont’d) • To arrange for the publication of technical and other information of interest to the industry. • To support worthy projects designed for the benefit of the Jamaican sugar industry. • To affiliate and co-operate with other bodies having similar objects. DTB,SPF,October 2007

  30. CONCLUSION • Organizations:- • From the foregoing it is evident that SIA and SIRI are part of one organization and that SMCJ and SPF can to a large extent be regarded as one. Therefore what looks like seven organizations can be regarded as five organizations. DTB,SPF,October 2007

  31. CONCLUSION (cont'd) • Are they necessary? • The main threat facing the Jamaica sugar industry is its viability in the light of the thirty six percent reduction of the price and other uncertainties regarding sugar exported to Europe; • To survive the industry must reduce its unit costs and this can best be done by increasing production DTB,SPF,October 2007

  32. CONCLUSION (Cont'd) • SIA,SIRI and JCPS ,which are funded by the industry before the price paid to the industry is determined, must ensure that their services are delivered efficiently on a least cost basis without duplication of efforts; • More important than the number of organizations is the quality of service which they provide; • The service should be relevant to the industry and utilized by it. DTB,SPF,October 2007

  33. CONCLUSION (cont'd) • The seven organizations referred to earlier all have stated objectives which may or may not be relevant today; • It is therefore important that the role and function of each organization should be kept under constant review and one such review should be undertaken now. • Are the organizations necessary? You be the judge. DTB,SPF,October 2007

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