Trade Watch V9 No3 2015

CAriBBeAn exporters oF tHe YeAr 2015

Nand Persaud: Leading the Way in Green Energy

however Ashish believes that they will need full support from the government of Guyana, and since the country doesn’t have the technical infrastructure to do these kinds of projects on their own, they will also need the assistance of foreign agencies to implement these projects. “In Guyana almost all electricity produced is fueled by oil, so we would like to substitute that for a much cheaper and renewable alternative energy resource to power the plant” declared Ashish. The cost of production of rice is higher in Guyana than for its competitors and this is because the cost of electricity is higher than in other rice producing nations. “If the cost of electricity was lower we would be able to reduce production cost and as a result pay the farmers a better price”. The company is not only looking to produce energy for its specific use, but to provide renewable energy to others as well. “It is a first time initiative in the Caribbean, and if we can successfully provide a better alternative to energy, more industries will come on board” stated Ashish. Nand Persaud started its operations 21 years ago with a production of one metric tonne per hour of rice. Now they produce 16 metric tonnes per hour of parboiled and white rice and they have recently purchased a bigger parboiled rice machine which will soon be put into production. The company’s total sales volume last year was over 67,000 tonnes of which they exported approximately 52% of it to 19 different countries around the world under the Karibee brand. Their export sales developed organically over time and now with the increased capacity of this new machine, they anticipate that they will increase their export sales by 30%. “There is a greater demand for parboiled rice over white rice in all the existing markets”, professed Ashish “so we are increasing our supply to meet the demand that already exists”. Despite their impressive export sales, the company still faces the challenge of high shipping costs particularly within the region. High transportation costs coupled with the infrequency of ships travelling to smaller Caribbean islands has stifled their regional trade. Their success in the international market however is credited in part to of the improvements in the ease of doing business through trade agreements between the EU and the Caribbean such as the Economic Partnership Agreement (EPA). (TW)

The cost of energy in the Caribbean is the largest barrier that manufacturing firms face when dealing with price competitiveness in the international market, however one company in Guyana using its waste products to defy these odds. Rice shell, accounting for 22% of the rice crop, is a waste product in the manufacturing process of rice, but Nand Persaud and Co. Ltd (Nand Persaud) has found a way to turn that waste product into energy to supplement their energy consumption. Ashish Khandage, the business development officer, met with The Caribbean Export Development Agency (Caribbean Export) to discuss the operations of the company. “Last year 19,000 metric tonnes of rice shell was gathered in the milling process of the rice. Approximately 60% of this waste product was used to create energy [46 million units of electricity] for the plant”. Winner of the Caribbean Export’s Green Exporter of the Year 2015 Nand Persaud was nominated by the manager of their Insurance Company. “We were short listed for two awards, The Caribbean Exporter of the Year and the Green Exporter of the Year and we won the Green Exporter Award” stated Ashish. “We didn’t develop the green technology with the intention of receiving any form of recognition, however when the awards were brought to our attention we decided that it was a good opportunity to show the world what we were doing” professed Ashish. “This award means a lot to Guyana, we are the only company in the country that has been honored in this way, so this is not only an award for us, it is an award for the entire country”. Wood is mostly used in rice mills as the main source of energy in the production process, along with oil and electricity. According to world estimates, the company is saving 300 tonnes per hector of trees from deforestation each year. “We are trying to encourage other companies to follow suit” stated Ashish. Guyana is a rice producing nation and approximately 70% of the rice mills do not incorporate this technology. “We mentor them and show them what we are doing so that they can benefit from it as well”. We definitely owe it to the environment and we are looking forward to the positive effects that this initiative will have”. The company is looking into additional alternative energy resources, and this award has encouraged them to continue their pursuit of green technologies with a fresh and renewed sense of zeal. A feasibility study is currently being conducted in Guyana to determine whether it is practical to employ alternative energy resources such as wind and solar energy,

5 Tradewatch • The Official E-Newsletter of the Caribbean Export Development Agency • Vol.9 No. 3, 2015