The Fiji Sugar Corporation Ltd (FSC) has entered into a long-term agreement on the supply of raw sugar for preferential import into the European Union (EU) market with its traditional buyer, Tate & Lyle.  

The contract for the supply of up to 300,000 tonnes of sugar per annum will run until September 30, 2015 and will be worth over F$1 billion to the Fiji sugar industry.  

Expressing his appreciation on the conclusion of the negotiations, the Finance and Sugar Minister, Mahendra Chaudhry underlined the well established and strong commercial links between Tate & Lyle and the FSC.

He stressed that the challenges arising from fundamental changes under the reform of the EU Sugar Regime and the trading arrangements under the EPAs required the sugar industry to seek long term commercial arrangements, which would contribute positively to the continued viability and sustainability of the industry. 

Chaudhry added that the current sugar industry reforms and the on-going mill upgrade programme would ensure that Fiji was able to take full advantage of the additional market access opportunities for sugar in the EU as well as benefit under its long term contract with Tate & Lyle.

“The new agreement contains stringent requirements in terms of quality and shipment schedules and can only be realised with the full and active participation of all concerned,” he said.  

“The onus is now on all industry stakeholders to actively play their respective roles in enabling us to honour FSC’s full commitments under the agreement,” he said.

“The EU preferential price is expected to remain attractive, despite reductions totalling 36 per cent by 2009, provided we are able to achieve efficiency and productivity gains, both in the field and the factory,” Chaudhry said.