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The relationship between Fiji Sugar Corporations profitability and sugarcane production

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Prasad, Biman Chand
Narayan, Paresh Kumar

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Crawford School of Public Policy, The Australian National University
Asia Pacific Press

Abstract

The Fiji Government's inability to resolve the differences over land leases is widely seen as a major contributor to the difficulties experienced by the sugar industry. In this paper, however, a different perspective is provided on the industry's problems. In examining the relationship between the profitability of the Fiji Sugar Corporation and sugarcane production, it is found that profitability has had a statistically significant negative effect on sugarcane production, leading to the conclusion that the Fiji Sugar Corporation has been inefficient in the management of the mills, the rail transport system, and sugarcane research.

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Pacific Economic Bulletin, Vol. 19 , No. 2, 2004

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