Page 112 - STRATEGY Magazine (G)

Over the past 10 years, pests and diseases affecting sugar crops have doubled, but chemical control is at an all-time low, as environmentally sustainable biological controls such as natural predators and microbial parasites tackle the problem.
more pesticide-resistant over time and pesticide chemicals negatively affect the environment, IPM seeks to fight pests and diseases with biologically stronger crops.
Currently, breeding pest-resistant sugarcane requires min- imal chemical use—which is both cost effective and environ- mentally friendly. The third factor ensuring a rise in production and efficiency is improved irrigation practices, including highly mechanized watering, which reduces run-off and waste yet sufficiently hydrates plants.
Environmental sustainability, the fourth factor, has become a focus in the last few years. The sugar industry founded the Climate Change Institute (ICC), a private sector research group, to explore the effects of sustainability on efficiency and the environment.
One example of this focus on sustainability is the practice of ethanol by-production from molasses, which led to the ex- portation of 272 million liters of alcohol in 2014. Considering environmental factors is important since the area already has to contend with weather patterns affecting sugar crops—specif- ically El Niño/La Niña, climate phenomena that cause intermit- tent flooding and changes in cloud cover and light intensity.
RESEARCH RESULTS
Research and development recommendations and efficient practices paid off. Modernizing industry protocols has helped boost the success of crops while also creating jobs. Not only have production values increased consistently since 1990, but the sugar industry in Guatemala is also well established and positioned for long-term viability.
The initiatives implemented by sugar mills thanks to state-of- the-art R&D have greatly reduced the amount of land needed for current production. In comparison, without improved genet- ics, IPM, wise water usage, and sustainable practices, about 550,000 hectares, or twice as much as today’s planted area, would be required to produce the current volume of crop yields.
Like any other industry, sugar crops create jobs directly and indirectly. Estimates reveal that about 350,000 jobs are created during cane cutting season, 60,000 of which are direct employ- ment.
Guatemala’s sugar industry is a mainstay of the economy. If sugar mills continue to accommodate demand with intuitive business practices, then sugar should maintain its vital role in the nation’s agriculture industry.
New Perspectives on the Guatemalan Sugar Industry
Investors target companies that are good corporate citizens and that treat their workers fairly. According to Corporación San Diego President Fraterno Vila Girón, the Guatemalan sugar industry continues to deal with negative perceptions that developed decades ago. These perceptions—involving such issues as land rights, forced labor, and child labor—no longer reflect the reality of how the industry functions, nor do they recognize the vast improvements it has made to industri- al and community relations.
OVERCOMING NEGATIVE PERCEPTIONS
Since its beginning nearly 60 years ago, the Association of Sugar Producers of Guatemala (ASAZGUA) has increasing- ly incorporated international labor standards into the sugar industry, eliminating the problems of child and forced labor. In 1990, ASAZGUA established FUNDAZUCAR, a founda- tion dealing with social issues that has been key in addressing questions of both labor and land rights.
In a further response, the Guatemalan legislature has been proactive in passing laws that protect workers. Together with encouragement from international buyers, which include globally recognized brands, the industry has come a long way
in accepting its responsibility for good corporate citizenship in the form of positive labor relations and aid to local com- munities.
Vila acknowledges that negative perceptions will take time to overcome, but he extends this offer to the world: “Don’t believe me. We invite you to come and see the reality of the country.”
Industry-sponsored programs teach and
promote good nutrition and best hygiene
practices. In addition to producing dra-
matic results in terms of health, the pro-
grams have also had the effect of elevat-
ing women’s status relative to men.
—Fraterno Vila Girón, President, Corporación San Diego
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