Fiji Sugar target more than 400,000 tonnes

Press, 16 May 1985, Page 27

Fiji Sugar target more than 400,000 tonnes

NZPA special correspondent Suva Fiji is expected to sell more than 400,000 tonnes of sugar this year. Malaysia has agreed on a long-term contract to buy 60,000 tonnes of sugar from Fiji this year, 70,000 tonnes next year, and 80,000 tonnes in 1987 at a price which is “way above” the market price. Fiji sold 480,000 tonnes of sugar last year and had set a target of more than 400,000 this year, said the managing director of Fiji Sugar Marketing Company, Mr John May. “If more sugar is produced than anticipated, then we will sell more,” Mr May said.

The price of sugar on the world market is still very low, about 4c a pound. Mr May has visited Korea, Japan, Hong Kong, Malaysia and Singapore in an attempt to get larger quotas. He was accompanied by the independent chairman of the Fiji Sugar Industry, Mr Gerald Barrack, and the chief executive of Fiji Sugar Corporation, Mr Rasheed Ali.

“The price paid is substantially higher than the current world market price and Malaysia is a very

important market." Mr May said.

Fiji has been selling 60,000 tonnes of sugar a year to Malaysia from 1979 to 1984.

China has agreed to buy 20,000 tonnes of sugar from Fiji at the market price this year but the quota may be increased later in the year.

Fiji has sold 40,000 tonnes of sugar a year to China over the last three years.

“In fact, China has the potential to become our most important market,’’ Mr May said. In China, average annual consumption of sugar was skg per head. Mr May said that Japan imported 1.2 million tonnes of sugar a year and would buy 14,000 tonnes from Fiji this year, and this quota might increase with a last cargo late in 1985. Buyers of molasses in Japan were satisfied with the quality of Fiji molasses and wanted a larger quantity in 1985, he said. Fiji will also sell about 16,000 tonnes of sugar this year to Singapore and this figure might increase if buyers in Singapore ask for a 1986 quota to be advanced this year. Another 14,000 tonnes of sugar will be

shipped to Korea. This figure also might rise later in the year.

Fiji will also sell 175,000 tonnes of sugar to Britain under the Lome agreement but the 15,000 tonnes a year quota to the United States will drop next year because of surplus American sugar. Mr Barrack said that the visit by the sugar chiefs to the Asian countries was successful. Buyers were satisfied with the quality of Fiji sugar and molasses and were prepared to negotiate contracts to buy from this

years crop. The policy of selling direct to refiners through brokers had enabled Fiji to sell in spite of strong competition from other countries, he said. Mr Barrack said that the large surplus of sugar stocks on the world market was keeping market prices extremely low. Some sugar had to be sold at world market prices, thus reducing Fiji's earnings, although Fiji had long-term agreements and quotas with a number of countries.