Labasa Mill closes with dismal performance

[posted 19 Dec 2011,1615]

Crushing at the Labasa Mill ends tonight with this season's crush of around 570,000 tonnes of cane.

FSC estimates a standover crop of 40,000 tonnes which brings the crop total to 610,000 tonnes compared to pre-crush estimates of 654,000 tonnes, a shortfall of 44,000 tonnes.

The mill made about 44,000 tonnes of sugar returning a high TCTS of 13:1 (13 tonnes of cane to make a tonne of sugar) due to frequent breakdowns. Milling inefficiencies resulted in an estimated loss of 13,000 tonnes of sugar calculated at a TCTS ratio of 10:1.

In monetary terms, this loss equates to $13 million of which the growers will bear $9 million or $15.78 per tonne of cane.

The loss is huge. Somewhat similar results are expected from the other three mills which have also been plagued by milling problems. Bad news for the industry and its future sustainability. 

S. Lal