A recent study commissioned by the Fijian Government and conducted by consultants from the Food and Agriculture Organisation (FAO) has revealed that government efforts to revitalize Fiji’s sugar industry have not been successful in reversing its ongoing decline.
Over a period of four months, consultants Poonyth Daneswar and Jolly Lindsay engaged with various industry stakeholders, including representatives from the industry and farmers, to examine the operational challenges facing the sector. The findings of this extensive study were presented to the Ministry of Sugar Industry and other relevant governmental bodies on December 16, 2024.
Minister of Sugar Charan Jeath Singh outlined several key findings from the report. He pointed to inefficient management along the supply chain and elevated production costs as significant barriers to increasing output. The minister noted that unresolved issues related to expiring leases and insufficient utilization of land have deterred potential investments and long-term strategic planning within the industry.
Furthermore, Singh highlighted the complications arising from overlapping responsibilities among various entities, which have led to operational inefficiencies and hindered necessary reforms. The industry’s heavy dependence on raw sugar exports leaves it susceptible to fluctuations in global prices. He emphasized that there are viable opportunities in sectors like ethanol production and biomass cogeneration that remain untapped, potentially giving the industry more stability.
Additionally, the Minister acknowledged that extreme weather events have severely disrupted sugar production, stressing the urgent need to adopt more resilient practices in response to climate change.
This situation presents a critical juncture for Fiji’s sugar industry, as it navigates challenges while potentially exploring new avenues for growth and sustainability. With the right strategies and collaborations, the industry could pivot toward a more resilient future.
Summary: A study by FAO consultants shows that Fiji’s government interventions have not reversed the decline of its sugar industry, citing inefficient supply chain management, high production costs, underutilized land, and vulnerability to global price changes as key issues. The emphasis on exploring alternative products like ethanol and improving climate resilience presents an opportunity for future growth.
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