One-Month Strike Affects Food, Paper and Fuel Industries in Colombia

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Researched by Industrial Info Resources (Sugar Land, Texas)--The strike that Colombian sugar cane cutters have been holding for the past month has caused shortages in the fuel, paper, food and beverage industries due to the lack of sugar and ethanol production. The strike began on September 15, when employees imposed a blockade on the major sugar refineries of the country, preventing the entrance and exit of workers and products, forcing a complete shutdown. For more details, view related September, 22, 2008, news article - Strike Forces Colombian Sugar Refineries to Stop Production.

Strikers blocked the Castilla, Manuelita, Incauca, Providencia, Mayaguez, Central Tumaco, María Luisa and Pichichi sugar refineries, all located in the Cauca and Valle del Cauca departments. The capacity of these companies account for 70% of Colombian sugar production, the lack has resulted in an increase in the price of sugar, and the import of 42,000 tons of sugar from Bolivia and Ecuador. The paper industry has been affected too, Productora de Papeles S.A. (Propal) (Yumbo), the biggest paper producer in the country, has been forced to stop production at one of its plants due to the lack of feedstock, which is sugar cane agricultural residue.

In Colombia, E-10 fuel, a mixture of 90% oil fuel and 10% ethanol is commonly used. Ethanol is produced by the Manuelita, Providencia, Incauca and Mayaguez sugar refineries, which have a combined capacity of about 251,000 gallons per day. The strike caused the production of this fuel to cease, and the storage deposits that hold 15 million liters inside the mills are blocked, resulting in a shortage of ethanol and an increase of about $0.60 per gallon of fuel oil.

The sugar industry in Cauca and Valle del Cauca employs around 12,000 cutters, 2,000 of which are carrying on with the strike and preventing the refineries from resuming activities. They are demanding higher salaries and job stability, but members of Asocana, the association of Columbian sugar cane producers, have stated that these demands are difficult to meet. Losses in the sector are estimated at $3 million per day.

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