Home » Bainamarama » Living on borrowed time and money

Living on borrowed time and money

Our kindly dictator announced a final payment to cane farmers that will bring their final payment to $80 a tonne of cane. So if we produced 2 million tonnes of cane that gives a total pay-out of $160 million.

This is very impressive, except for one thing. It sounds like more than FSC has been getting for sales of sugar. FSC does not have $160 million to hand out unless they’ve borrowed it.

The 2011 Annual Report for FSC reveals that in 2011 FSC’s total revenue for sales of sugar and molasses was $141.4 million. It cost FSC $173.7 million to produce this sugar, and that was with a cane price of only $54 a tonne.

The 2011 Annual Report shows that FSC had total debts of $249.4 million, most of them short-term borrowings.

The $80 cane price will be funded from borrowings, so what’s the bet that Bainimarama has been borrowing from the FNPF to pay cane growers so that industry doesn’t collapse until he has managed to have himself ‘democratically’ elected.

In 2009 and 2010 FSC borrowed about $80 million a year and repaid about $30 million, adding $50 million a year in debt. With a cane price of $80 a tonne the debt mountain will be sky high. Only borrowings from FNPF are keeping FSC afloat. We can be sure that commercial banks are not lending to a corporation in such a disastrous financial situation.

This cannot go on. Bainimarama will keep it going only long enough to cement himself in power. He will then pull the plug and FSC will crash to a halt.

$80 a tonne will not make farmers wealthy but it will keep them going and give them false hope long enough for Bainimarama and his Minister for Election Rigging to steal an election.

24 thoughts on “Living on borrowed time and money

  1. Bainimarama is actually on election campaign now…dishing out bribes similar to the Agr Scam we had under Qarase…dous not make either excuseable…..but he is on Govt funded campaign using peoples’ FNPF money….this is daylight robbery……he should be couped out of office by peoples’ mass protest.

  2. I don’t know what the price per ton of cane farmers normally receive but from figures quoted by Navosavakadua there is something fishy going on. How long this will last is the main issue since the lifeline is connected to the tap at FNPF. This somehow explains why the FNPF reforms were implemented in a blitz so as to spare some cash for all these funny business being carried out by the dicktator. If 1+1 does not equal to 2 then surely there is something amiss. But then many of the people are in a induced trance that they don’t see or bother about it. They only can see what is being flashed before their eyes and not what’s behind it. All these happening at this time spells a vote buying is in full swing.

  3. Yes where is the bloody illegal government getting the money to make this payout as the revenue from the sale of sugar is far less than the amount to be paid out unless they have pulled money from somewhere just to make things look good for the ordinary eyes to see. Definitely it is just vote buying for the sugarcane farmers.

  4. So where’s the proof ? With the supposed amount of anti government support there must be someone that is prepared to back up these accusations with the facts.

  5. Cane cutter what proof? You must be blind or you head is drowned somewhere so you can’t see.

  6. Ships of gold are coming. Daddy told me. Soon everyone will be as rich as us. Thank you Aunty Nur.

  7. @Adios Amigo

    Typical dumbass comment from you but what would anyone expect coming from someone that is unable to use his brain as so many have their head stuck up it.

    Read the article again numbnuts and try thinking for once before engaging your mouth.

    ‘Only borrowings from FNPF are keeping FSC afloat’, …… PROVE IT

  8. “” Only borrowings from FNPF are keeping FSC afloat. We can be sure that commercial banks are not lending to a corporation in such a disastrous financial situation.””

    Is this idiot for real ?

  9. “” so what’s the bet that Bainimarama has been borrowing from the FNPF “”

    So in other words this idiot does not know where the moneys coming from in one paragraph and in the next tries to assure us it’s from our FNPF.

    A lesson in how to lose ALL credibility.

  10. Do you understand it now Amigo or does it need to be spelled out further for you ?

    This man has no credibility in his writings, he contradicts himself repeatedly but as usual the sheep follow because they do not have the intellect to understand what they read.

  11. What proof you want Gandu Cutter? The only local lending institution that provides money to the Illegal government is FNPF. Where did it get the money from you answer Gandu?

  12. “” What proof do you want “”

    I give up, one more shovel full of dirt from that hole you are digging yourself and you will bury yourself totally.

  13. For context, the total revenue for all growers in Fiji was F$85,100,000 in 2011, according to the Fiji Sugar Corporation’s 2011 Annual Report, and the average net benefit from Fairtrade certification in Vanua Levu alone is F$757,872, assuming as the study does, a mid-range estimate of a total of seven years of certification and an additional five years of benefit from expenditure of funds saved during certification.

  14. Sugar sales fail to reach $100 million
    March 22, 2013

    Before the Bainimarama takeover FSC sugar sales were always well above $200 million a year. In 2010 they had fallen to $77.7 million, rising to $123.3 million the following year. FSC have now confirmed that sales of sugar from 2012 harvest will be a paltry $95 million. And thanks to the devaluation of the dollar after the constitution was abrogated in 2009, the real value of the $95 million is much less. They’d be not much more than $50 million in the dollars of 2006. And who is the Minister for Sugar over most of this period – Bainimarama

  15. In February 2013, the CEO of the Fiji Sugar Corporation announced expected production of 190,000 tonnes of raw sugar in the year to 30 September 2013, up 35,000 tonnes (+22.6%) on the year to September 2012. The improved performance was attributed to favourable weather and “reforms undertaken during the off-season periods”.

    A number of the reforms have been described in press reports, including:

    government-assisted cultivation and harvest mechanisation;
    the establishment of machinery pools;
    training of cane cutters;
    introduction of a cane quality payment system;
    improved practices, including inter-cropping and enhanced extension service provision;
    improvements in transportation to the mills;
    management improvements at the mills.

    The reform process is continuing: in March 2013, Fiji Sugar Corporation (FSC) unveiled plans to plant 9,000 hectares of new cane under a system of estate production. A spokesperson for the Sugar Industry Tribunal commented that the industry had been “working tirelessly with the introduction of many new machines and technology” and working also to attract new farmers into the industry as well as to bring back those that had left it, a process that should be helped by the annual increases in the farm-gate prices of cane since 2010.

    On the basis of the increased production expected to result from these reforms, FSC expects to export 160,000 tonnes to the EU through Tate & Lyle Sugars (TLS), up from 147,000 tonnes (+8.8%) in the previous season. The current arrangement with TLS is scheduled to run until the 2014/15 marketing year.

  16. Anon above the Sugar industry will collapse under the illegal regime. Their reforms will come to naught.

  17. The sugar industry started to collapse from the coup of May 2000, when leases were not renewed.

    Collapse of this industry is directly due to itaukei racist thugs.

  18. Don’t blame the 2000 Coup for the decline in the sugar industry, the current regime has been running the show for nearly 7 years now and so it must take the blame for its poor management of the industry and also the loss in millions in aid from the European Union as a result of the illegal status of the regime has very much exacerbated the situation.

  19. In 2009, Fiji’s preferential access to the EU market expired, triggering a sharp decline in output, exports, and farm incomes. Under the Cotonou Agreement, the EU had committed to provide Fiji with financial support to ease the transition to a market-oriented sugar pricing regime. Following the 2006 coup, the EU advised that such assistance would not be forthcoming until progress had been made in restoring human rights and democratic processes.
    The weaknesses of the organization, structure, and management of the sugar industry have also contributed to the industry’s decline. The Fiji Sugar Corporation (FSC) suffers from insufficient economies of scale, i.e., FSC’s share of the proceeds of the sales of growers as provided for in their contractual agreements is too small to cover operating costs. There is also an incentive system that encourages growers to burn their sugarcane in order to have it ready for access by the four FSC mills at harvest time.25 As a result, the quality of the sugar sold to the mills is poor, and the volumes milled are insufficient to allow the FSC to generate sufficient profits.

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