FSC mitigates decline
7 October, 2014, 12:00 am
THE Fiji Sugar Corporation has put in place measures to ensure the global sugar oversupply and low prices do not affect canegrowers in the country.
This comes after revelation of a reduction by 30 per cent on this year’s sugar price compared with what was paid for last year’s product.
Executive chairman Abdul Khan said the FSC had mitigated the decline in sugar price by employing revenue risk management strategies.
“This is a huge worry. That is why we are putting measures in place to sustain margins,” Mr Khan said.
“Rather than relying on raw sugar, we are also improving revenue from other areas like looking at the sale of refined sugar, converting molasses to ethanol and cogeneration.”
Mr Khan said improving the overall efficiency of the industry was also critical to reducing costs and increasing yield.
“For growers, we are consistently looking at and implementing measures to improve farming, harvesting and logistics.”
The FSC has also improved sugar sweetness and produced high pol sugar to meet market requirements.
Speaking at the International Sweetener Symposium in the US this month, International Sugar Organisation executive director Jose Orive said global sugar supply and demand could come into balance in the 2014-2015 season after four years of oversupply.
He said lower production in key countries combined with increasing consumption would result in a near balance of sugar output and demand which should bode well for sugar prices.