Farmers highlight serious concerns

LABOUR costs, harvesting, payment systems, and sugarcane prices are major concerns for farmers intending to stay in the industry, a new study has revealed.

The study by four authors, including Suhayl Nadir and Salesh Kumar from the Fiji National University, found the issues that had the highest percentage of farmers identifying them as serious problems were the cost of labour, price of inputs, costs associated with harvesting and the mill payment system.

“For farmers who expressed willingness to remain in the sugarcane growing business, labor and input costs, logistics associated with harvesting, the payment system and sugarcane prices seem to be overall most problematic,” the authors said.

“Issues surrounding the cost and availability of labour, as well as the logistical difficulties for the effective mechanisation of harvesting have been previously highlighted as the main issues limiting the profitability of sugarcane farming in Fiji.”

Their research found that while mechanical harvesters have been introduced in Fiji, not all terrains, particularly those in small areas and with slopes and gradients, were suitable for mechanisation.

“The issues surrounding the sugarcane payment systems have also been documented. Farmers receive an average of 72 per cent of the income distributed into several payments throughout the year, with the remaining 28 per cent going to the mills.”

The study noted there were five payments spread over 18 months. The first corresponded to 60 per cent of the forecast price and was paid out three weeks after harvest, with harvesting, transport, fertilisers and debts to FSC deducted from the payment.

“The second payment, equivalent to 20 per cent of the forecast price, is paid five weeks after closure of the mill and the payment is made with all relevant deductions.

“The third payment is processed at the end of March, which is based on sugar sales to the end of February. The final payment is to be made in May based on sugar proceeds in April.”

The study showed that such a prolonged payment system sometimes affected the farmers’ cash flow throughout the year, potentially limiting their capacity to invest in anticipatory adaptation options.