Farmers misled on benefits of Fairtrade certification

[posted 20 July 2010, 1300]

Sophie Foster’s news story about cane farmers receiving $117 per tonne of cane following Fairtrade certification of Fiji sugar, is patently false.

It is a pity that facts are being misrepresented to mislead the cane farmers so as to lure them to plant more cane amid a massive decline in the cane crop in the last three years – from 3.2 million tonnes in 2006 to 1.9 million tonnes this season.

Ms Foster should have known that a premium of $US60 is paid for a tonne of sugar marketed under the Fairtrade label and not for a tonne of cane as she put it in her report (FT 19 July). Then again, the farmer will not receive any cash benefit from this payment as it will not be added to the cane price.

The premium monies received can only be used for approved projects which may assist the small producers in achieving best practice standards or for some other development or research oriented project which may benefit the producer. It certainly will not be payment in cash.

Meanwhile, farmers are struggling to survive in a situation of absolute disorder in the harvesting and crushing of cane. All four sugar mills are performing well below acceptable standards with the Rarawai and Labasa mills being the worst.

Milling statistics are not being released by the FSC but sources have indicated that the TCTS ratio at all mills is alarming. Figures obtained from Labasa mill sources reveal an average of around 22 tonnes of cane to a tonne of sugar, while Lautoka and Penang are operating at around 14:1. Rarawai Mill has similar problems with a reported TCTS of 30:1!

FSC’s general manager operations Annamale Naicker needs to reveal this shocking truth to the farmers instead of gloating that the mill was crushing well (FT 19 July).

At the current rate of recovery, FSC is certain to produce more molasses than sugar. This may require a name change to Fiji Molasses Corporation (FMC) with sugar now being a by-product of molasses!