THE EU abolition of sugar production quotas after September 2017 will be a challenge for Fiji’s Sugar Industry,” says Prime Minister and Sugar Minister Rear Admiral (Ret) Voreqe Bainimarama.

In his speech to the International Sugar Organisation, Mr Bainimarama said suppliers such as Fiji were now preparing for a reduction in export revenues.

“The abolition of EU sugar production quotas post 30 September, 2017 and the consequent adverse implications on sugar prices poses a very big challenge indeed,” he said.

“Moreover, EU sugar prices have already come under pressure, with significant falls compared to prevailing prices over a year ago.

“So suppliers like Fiji have to prepare for a reduction in our export revenues even before 2017. A sobering prospect for any developing nation.”

He said Government would not wait to be swamped by these events. “Our Industry is vigorously fast-tracking other initiatives to diversify and expand its revenue streams.

“We are moving away from our reliance on one commodity — raw sugar — because we know this is no longer viable.

“We need to be smarter, to add value to our crop, to exploit new revenue opportunities and open up new markets.”

He said these initiatives include the establishment of bagasse-based electricity cogeneration at the Rarawai and Labasa sugar mills, the establishment of a sugar refinery in Labasa to meet domestic and regional demand for refined sugar between 18 and 25,000 metric tonnes and the establishment of an ethanol plant at the Rarawai Mill, primarily to serve the domestic market.

“All these initiatives are national priorities that we intend to begin coming on stream from the second half of 2015.

“It’s all about being smarter, more adaptable and embracing technology rather than simply standing by and being swamped by events.”