Drought Disrupts Fiji’s Sugar Shipments: What’s Next?

Prolonged drought conditions linked to the El Niño phenomenon have had a significant effect on the cane crop production for 2024, leading the Fiji Sugar Corporation (FSC) to announce that it may be unable to fulfill one of its shipment obligations.

The FSC had originally committed to a total shipment of approximately 84,000 tonnes of sugar, which includes a shipment for the US market and two for a refiner in Korea. Bhan Pratap Singh, the chief executive officer of FSC, stated that they also pledged about 35,000 tonnes of sugar to local and regional markets.

Mr. Singh indicated that the fourth shipment now appears unfeasible, with the expected sugar volume adjusted from an initial estimate of 153,021 tonnes down to 121,272 tonnes. He mentioned that the November 2023 forecast anticipated a cane production of 1.51 million tonnes for 2024. However, ongoing drought conditions have led to a revised projection of 1.30 million tonnes as of August 2024.

The CEO warned that the extended drought not only affects the current year’s crop but also jeopardizes the 2025 season’s crop due to inadequate planting during the crucial months from March to July, as well as poor establishment of ratoon crops. He noted that even with possible rainfall anticipated in the coming months, the risks of late planting and lower productivity remain a major concern.

FSC is actively monitoring the situation and is dedicated to supporting farmers during these difficult times, while also exploring ways to lessen the impact of similar drought events in future crop cycles.

Rainfall data from the FSC indicates a dramatic drop in rainfall from October to December last year, with the Lautoka mill experiencing an 82 percent decrease, Rarawai mill an 87 percent reduction, and Labasa showing a 59 percent decline.

As a result of these significant rainfall deficits, crop output in mills on Viti Levu dropped by 20 percent, with a 4 percent decline observed at Labasa mill.

As of August 12, 2024, the Lautoka mill processed 208,768 tonnes of cane yielding 16,066 tonnes of sugar; Rarawai processed 153,564 tonnes of cane for 13,677 tonnes of sugar; and Labasa crushed 239,388 tonnes of cane resulting in 23,796 tonnes of sugar.

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