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FSC clears the air

Felix Chaudhary
Thursday, February 21, 2013

INCREASING yield per hectare will not substantially increase cost to cane growers.

The comment was made by Fiji Sugar Corporation executive chairman Abdul Khan in response to concerns by growers on the rising cost of cane production and transportation during consultations in the Western Division.

"Like any production cost, there is always the fixed component whether you produce 20 or 50 tonnes," he said.

"When you increase yield the fixed cost is the same. By increasing yield on a per tonnage basis, the production cost will be slightly more. So it would be in the interest of growers to look at ways to increase yield from the current 40 tonnes per hectare to 70."

Responding to complaints about rising transportation costs, Mr Khan said once the FSC took over road transportation, a structured pricing system based on stages would provide a more fair and transparent system for levying charges.

"Fees will be levied on a stage by stage basis. So growers will pay depending on their distance from the mill as opposed to the current system where a flat fee applies."

The FSC has announced it will take over road transportation beginning next season and will also improve and increase the use of the rail network system in a bid to improve logistics and reduce costs to growers.





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