Agency costs, corporate governance and the Fiji Sugar Corporation

Abstract

The Fiji Sugar Corporation, the sole miller in Fiji, has experienced declining financial performance for over a decade, despite Fiji enjoying sugar prices two to three times the average world price. The corporation?s poor financial performance has primarily been blamed on the increase in burnt cane. This paper tests the importance of factors controlled by growers and millers in explaining the decline in the profitability. It concludes by reviewing proposed policy reforms and suggests alternative policies to reverse the recent trend.