Lautoka Sugar Mill Slump Sparks Worries for Fiji Cane Farmers

Lautoka Sugar Mill Slump Sparks Worries for Fiji Cane Farmers

Cane farmers in Fiji are facing the prospect of significant losses as the Lautoka sugar mill records its lowest performance in years. The most recent report from the Fiji Sugar Corporation highlights a troubling situation, with the mill requiring 17 tonnes of cane to produce just one tonne of sugar, a marked decline from the typical 10 tonnes necessary in previous seasons.

Last week, the Lautoka mill’s crushing operations resulted in just over 29,000 tonnes of cane being processed, yielding a mere 1,753 tonnes of sugar, falling well short of the target of over 31,000 tonnes of cane and 3,100 tonnes of sugar. The National Farmers Union (NFU) attributes this dramatic fall in output to the processing of stale and burnt cane, warning that conditions could deteriorate further unless immediate remedial action is taken. At this rate, it could take up to 12 weeks to process the remaining 350,000 tonnes of cane in the Western Division, and the crushing season may even extend into January of next year if the Rarawai Mill does not reopen as scheduled.

The outlook for the 2025 season appears equally grim, with predictions indicating that sugar proceeds could decline, leading to lower cane prices. The NFU is urging the government to intervene by refunding penalties on burnt cane, waiving deductions implemented since September, and raising the guaranteed minimum price for cane from $85 to $106 per tonne. The current minimum price, established in 2018, no longer reflects rising production costs, which have escalated by 25 percent since that time.

Amid the growing concerns, Prime Minister Sitiveni Rabuka has suggested an all-industry conference aimed at tackling these pressing issues, responding to the farmers’ repeated calls for action. The NFU stresses the necessity for the government to quickly rally stakeholders and formulate strategies to rescue the struggling sugar industry before it witnesses further decline.

Reports have previously detailed ongoing operational challenges plaguing the Lautoka mill, including mechanical failures and inefficiencies leading to wasted cane. As this situation unfolds, the resilience of the farmers and support from the government are crucial in navigating these turbulent times. The combined efforts of all parties with a stake in the sugar industry could foster improvements and contribute to a revitalized sector moving forward, ensuring stable livelihoods for those reliant on this critical industry in Fiji.

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