Strike Forces Colombian Sugar Refineries to Stop Production

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Colombian sugar cane cutters indefinitely went on strike beginning on September 15 to protest unfair salaries and bad working conditions. The strike led to the shutdown of major sugar refineries in the departments of Valle del Cauca and Cauca in western Colombia. The country is facing a shortage of ethanol and sugar, and the food, beverage and fuel industries have either halted or decreased activities.

Sugar cane is important to the Colombian economy. Last year, 200,000 hectares of sugar cane were planted, of which 21 million tons were used to produce 2.3 million metric tons of sugar for exports and the internal market. About 275 million liters of ethanol were distilled. Colombia has been promoting the production of ethanol. For more details, view related January 7, 2008, news article - Colombian Government Announces $342 Million Investment for Ethanol Plants. Valle del Cauca and Cauca hold most of the 13 sugar refineries, which employ about 12,500 cutters in total since mechanical harvesting has not yet been implemented.

The workers are demanding higher salaries and job stability, since they are not formally hired by the refineries. They are paid about $375 per month. During the strike, the workers blocked the entries of seven of the most important refineries: Mayaguez, Manuelita, Providencia, Incauca, Castilla, Central Tumaco and Pichichi. This forced the facilities to shut down, affecting the production and provision of sugar and ethanol, as well as 250,000 jobs that are both directly and indirectly linked to the industry.

About 30 million Colombians use E10 fuel, a mixture composed of 90% oil fuel and 10% ethanol. Although some sugar refineries have ethanol in stock, the blockades formed by the protestors are preventing distribution. The fuel storage centers have enough in storage for four more days. But unless sugar refineries resume production, only fuel oil will be sold. The price per gallon could also increase, mainly in southwestern Colombia, which is located at the end of the distribution chain and demands higher transport costs.

View Plant Profile - 1078839 1078832 1078859

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.