A Fiji Sugar Industry delegation led by the Permanent Secretary for Sugar, Mr. Manasa Vaniqi, met with Senior Tate & Lyle Executives in London on Wednesday 14th July.
The delegation comprised Fiji High Commissioner, H.E. Mr. Pio Bosco Tikoisuva; Chairman of FSC, Mr. Gautam Ramswarup; CEO of FSC, Mr. Deo Saran Acting CEO of Sugarcane Growers Council, Mr. Sundresh Chetty and Counsellor, Fiji Mission to the EU, Mr. Nidhen Singh.
The meeting was convened pursuant to the Long Term Agreement between FSC and Tate & Lyle.
As part of this, the delegation sought the views of Tate & Lyle on the sale of its EU sugar refining operations to American Sugar Refining Inc.
Mr. Vaniqi said the presence of Government Officials at the meeting reinforces Government’s commitments in the future of the Sugar Industry and to take the discussions to another level.
Mr. Vaniqi gave a detailed presentation on the current restructure and reform program to revive the sugar industry to make it viable and sustainable.
He underlined that the main aim of the program was to have an efficient, viable and commercially oriented Sugar Industry in view of eroding sugar prices and the declining trend in farm and factory performances.
The Government had reaffirmed its commitments to the sugar industry with the recent announcement of the Land Use Policy in the Revised Budget presented in early July.
The new land law essentially provides the legal framework for leasing of native land and allows for the establishment of a land bank from which farmers can sub-lease or lease land from the State for a lease period of up to 99 years.
It will provide certainty of tenure and improved rental return to the landowners.
The Government has also committed significant financial resources for the cane development program and in this regard has sought assistance by way of financial support to Fiji Sugar Corporation.
Tate & Lyle representatives briefed the Fiji delegation on the sale of Tate & Lyle’s European sugar assets to American Sugar Refining Inc (ASR).
ASR has over 100 years experience in sugar business and a good understanding of sugar with current refining capacity in excess of 4 million tonnes of sugar from their refining operations in the United States, Mexico and Canada.
The focus of ASR would therefore be on growth and further development of the refining business.
Tate & Lyle representatives assured that they did not foresee any major contractual implications as a result of the change in ownership.
In this context they advised that the new owners are keen to maintain the strong relationship with the FSC.
The representatives advised that Tate & Lyle will continue with the technical support and assistance to the FSC including towards the implementation of the Fair trade Mark at all the mills in Fiji.
Mr. Ramswarup expressed FSC’s appreciation on the assurances given by the Tate & Lyle representatives that the new owners would not only continue but further develop the refining operations given their strong commitment to sugar refining business.
He added that the Fiji sugar industry was going through a critical phase in the implementation of the reform program and the initiatives taken by the Government to address key issues will result in significant improvements in productivity and efficiency of the industry.
He said that the mill upgrade program had been completed and the results should become evident during the current crushing season.
The current long-term agreement between FSC and Tate & Lyle for the supply of up to 300,000 tonnes of sugar per annum runs until 30th September 2015.
Tate & Lyle and FSC have had long-term supply agreements since 1975.
Tate & Lyle is the largest refiner of cane sugar in the European Union and has refineries in London and Lisbon.
Mr. Vaniqi said that the sugar industry in Fiji continues to account for a significant share of employment and is major source of foreign exchange earnings and government revenue.
The Government and the sugar industry stakeholders have no other choice but to confront in a determined and relentless manner the current challenges.