Fiji: Sugar income to drop

FIJI'S sugar industry is expected to rake in about $208million in export earnings based on a production estimate of 220,000 tonnes for this season.

But this year's earnings could be the last time it passes the $200m mark with the Fiji Sugar Marketing Company Limited forecasting a drastic fall in earnings next year.

Company chief executive Viliame Savou said based on estimates released in the 2009 national budget compiled with the assistance of the Fiji Sugar Corporation, export earnings have been forecasted to drop to $165.4m. Mr Savou said the initial prediction for the 2008 season was earnings of about $231m based on a production forecast of 281,000 tonnes of sugar.

However, the figures were revised to a production of 223,000 tonnes of sugar.

Given the major reduction of sugar preferential prices by 36 per cent next year, earnings are expected to plummet to the $160m bracket.

But Mr Savou said the figures of next year's earnings were based on a sugar production of 245,000 tonnes of sugar.

He said this year, with increased sugar prices; the industry has already managed to rake in $136m from four shipments. Three more shipments are to be sent to the European Union by early next year.
source:fijitimes