Fiji Sugar Corporation
Encyclopedia
Fiji Sugar Corporation is the Government-owned sugar milling company in Fiji
Fiji
Fiji , officially the Republic of Fiji , is an island nation in Melanesia in the South Pacific Ocean about northeast of New Zealand's North Island...

having the monopoly on production of all raw sugar in Fiji. It is also the largest public enterprise in Fiji directly employing nearly 3000 people while another 200,000 or more depend on it for their livelihood in rural sugarcane belts of Fiji.

It operates 4 sugar mills on the main island of Viti Levu namely in Lautoka, Ba (Rarawai), Rakiraki (Penang) and one on Fiji's second largest island Vanua Levu called the Labasa Sugar Mill. The huge mill that is situated in Lautoka is also the largest in Fiji and once held the title of being the largest sugar mill in the Southern Hemisphere.

The Fiji Sugar Corporation was incorporated in Fiji by an Act of Parliament in 1972 to take the milling activities with effect from 1 April 1973. At present, of the 399,998 fully paid shares, the Government owns 30,239,160 shares, and the rest are owned by statutory bodies, local public companies and individuals. The government therefore owns a majority share (68.1%) in the Corporation.

The Corporation has a Board of Directors appointed by the government and is the policy-making and governing body. The Corporation is predominantly managed and staffed by Fiji citizens. Following the forever, CSR continued to act as Fiji's sugar marketing agent overseas unti1 1976, when the government formed the Fiji Sugar Marketing Company Ltd to handle marketing activities. The company has its Head Office in Lautoka.

With the farmers wanting more say in the industry decision-making, Government decided on reforms within the industry. The Sugar Industry Act of 1984 restructured the industry. It established three new organizations, namely the Sugar Commission of Fiji, the Sugar Industry Tribunal and the Sugar Cane Growers Council.

It also established Mill Area Committees as an advisory body on local sugar matters. The Sugar Commission is the overall coordinating body. The Tribunal deals with the contractual relations between farmers and FSC, and any disputes and differences within the industry. The Sugar Cane Growers Council specifically deals with the farmer's interests. The workers in FSC have their trade unions to represent their interests.

One of the major functions of the Sugar Industry Tribunal is to establish and regulate a master award to control the contractual relationship between FSC and the cane farmer. The master award came into effect on 23rd November 1989 and has now replaced the sugar cane contract. Independent arbitrators who have set the contract terms in the past are Britain's Sir Malcolm Eve (later Lord Silso) and a British judge, Lord Denning.

Soon after the takeover, FSC embarked upon the expansion of Fiji's milling capacity. The four factories are capable of manufacturing more than 500,000 tonnes sugar per season. Some consideration has been given to a further increase in mill capacity towards a target of 600,000 tonnes sugar a year. Such expansion would require substantial capital investment at Fiji's four sugar mills.

One of the biggest sugar expansion projects undertaken in the Fiji sugar industry is Seaqaqa cane development scheme, where over 5000 hectares were brought under cane by 1980. This project cost $22 million and has accommodated 800 Fijian and Indian farmers. Funds were borrowed from the World Bank to help finance the project.

The government recognizes the problems of economic dependence on one crop. It has among other measures, encouraged tourism in order to diversify the economy. However, tourism is sensitive to a number of factors, and its contribution to the economy is somewhat less than sugar.

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