Fiji Sugar Corporation faces deep crises, review finds

The Fiji Sugar Corporation (FSC) is facing profound structural, operational, and financial difficulties, according to a critical review by the Standing Committee on Economic Affairs. The committee examined the FSC's 2024 and 2025 annual reports, highlighting a sector under significant strain.

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FSC faces deep-rooted structural, operational, and financial challenges.

Committee Chair Sakiusa Tubuna stated that while FSC reported a net profit in 2025, this figure does not signify a genuine recovery. Instead, the profit was primarily a result of government interventions and accounting adjustments. Beneath this positive headline, the reality is concerning: sugar production has hit its lowest point in over a decade. This decline is attributed to cane supply constraints, a high incidence of burnt cane, and inefficient harvesting and transport systems.

Tubuna emphasized that FSC remains heavily burdened by debt and relies on continuous government support, raising serious questions about its long-term sustainability. The review also pointed to systemic weaknesses in governance, asset management, and industry coordination. Chronic underinvestment has led to the deterioration of infrastructure, and diversification initiatives have largely remained aspirational without concrete business cases or financing strategies.

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FSC reported a net profit in 2025, the Committee finds that this does not reflect a genuine turnaround. Instead, it is largely due to Government interventions and accounting adjustments.

Compounding these issues, the continued decline in the number of growers and the area dedicated to cane cultivation pose a direct threat to the industry. Tubuna noted that a major problem for farmers is the high production costs relative to the standard farm size of 10 hectares, a limit set in the 1960s. Furthermore, a significant imbalance exists in cane supply, with 80 percent of farmers contributing only 20 percent of the total cane to the mill, while a small group of 20 percent of growers produce 80 percent of the tonnage. This disparity, coupled with low yields and rising costs, has severely impacted the industry's competitiveness.

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Beneath this headline figure lies a concerning reality of declining production, deteriorating infrastructure, and continued financial vulnerability.

Despite these challenges, the committee acknowledged FSC's efforts in areas like mechanization and digitalization. However, the report stresses that minor adjustments are insufficient. Decisive, coordinated reforms are needed, including strengthened governance, improved accountability, strategic investments, and a fundamental reassessment of the industry's business model. The recommendations aim to restore operational discipline, enhance transparency, reduce fiscal exposure, and facilitate a managed transition to a sustainable, commercially viable industry, requiring strong leadership and collaboration across government, industry, and growers.

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Without urgent interventions to restore farming viability and grower confidence, production targets will remain unattainable.