1 / 19

FIJI SUGAR CORPORATION AND INDUSTRY REVIVAL

FIJI SUGAR CORPORATION AND INDUSTRY REVIVAL. Presentation. Deloitte Recommendations Objectives Agreed Changes Three-Block Recovery Approach Strategies Personal Drivers Projection Challenges Medium Term Strategies. Deloitte Recommendations. Proposal 1 – Cane Replanting Programme

Anita
Download Presentation

FIJI SUGAR CORPORATION AND INDUSTRY REVIVAL

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FIJI SUGAR CORPORATION AND INDUSTRY REVIVAL

  2. Presentation • Deloitte Recommendations • Objectives • Agreed Changes • Three-Block Recovery Approach • Strategies • Personal Drivers • Projection • Challenges • Medium Term Strategies

  3. Deloitte Recommendations • Proposal 1 – Cane Replanting Programme • Detail Business Plan being prepared • Indentify Low-yield Farms / Areas • Involvement of Tribunal, SRIF, SPF, SCGC, CGF, FDB and FSC • Revolving Fund Facility • Advisory and Monitoring • Proposal 2 - Cane Quality Payment System • Deferred to 2012 Season • Further review of NRI System • Review of Core Sampling • Lessons from ASR Trails and Working Systems

  4. Deloitte Recommendations • Proposal 3 – Single Extension Programme • Hand-in-hand with Proposal 1 • Proposal 4 – Aggregation of Small Farms • Hand-in-hand with Proposal 1 • Identification underway (Both yield and area) • Proposal 5 & 6– FSC to Harvest and Deliver Cane • Need for Legislative change • Will be implemented in 2012

  5. Objectives • WITHIN TWO YEARS, RETURN THE CANE INDUSTRY TO LONG TERM COMMERCIAL VIABILITY • WITHIN TWO YEARS RETURN FIJI SUGAR CORPORATION TO PROFITABILITY

  6. Agreed Changes • Delist FSC from SPSE • Came into effect from 24th February 2011. • Government to Acquire 100% of FSC • Delivery under FSC Control • Target for 2012 Crushing Season • Restructure of FSC Organization • From Hierarchical to Matrix Structure • Backward Integration

  7. 3-Block Approach

  8. Block C Strategy • Products • Raw Sugar • Molasses • Ethanol • Refined Sugar • Electricity • Multiple Customers • Partnering Arrangement with Customers

  9. Raw Sugar Pricing • Existing Price (Partially Revised) • Approx. US$0.22 cents per lb • Negotiated Price for 2011/12 Season • Fixed for 12 months. • Better than present World Forward Price ($0.22/lb) • Possible Pol premium

  10. Tate & Lyle Partnering • 10 Target Areas • Full involvement in Preparing Mills for Crushing Season • Preventive Maintenance / Continuous Improvement • Comprehensive Inspection of Boilers • Water Management • Inspection, maintenance / replacement of Valves • Cane feeders and Mill Setting • Cane delivery logistics • Cane planting support programme • Mill management best practice / mentoring • Improvement to Extension Services

  11. EOI • Ethanol • Approximately 8 Companies • Being reviewed • Refinery and Packaging • Approximately 5 Companies • Being reviewed • Electricity Generation • Objective to meet FSC energy requirements AND additional revenue from Electricity sales • Replace of FSC dedicated Energy Center - $80m • Steam and Electricity facility - $130m • Incremental Revenue - $35m per annum from Electricity

  12. Steam & Electricity Partnering • FEA • Long term power purchase agreement • Take-or-pay arrangement • Wheeling Arrangement • Vatukoula Gold Mines Ltd • Off-take Agreement • Contribution to Feasibility Study • Financing Options • FSC • Product Exchange Agreement • Financing Options

  13. Block B Strategy • Reliability and Production Consistency • Very Targeted 2011 Maintenance Master Plan • Not Doing Maintenance BUT Preparing the Mills for Crushing • Reduce Crushing Rate to Manageable Levels • Remove Destructive Competition • Special Assistance from Tate & Lyle Technicians • Losses and Wastage • Better Milling to reduce Juice in Bagasse • Re-cycle Spillage • Production Cost • Implement targeted Cost Effectiveness • Value-driven Expenditure • Partnering Stockholding with Equipment Suppliers

  14. Block A Strategy • Increase Quality Cane Production • Helping Hand for New Growers • Improve Quality Cane Yield • Revolving Fund availability • Premium Payment for Quality Cane • Introduction of “cane quality payment” • FSC Backward Integrate • Acquire new and un-used Cane Plantation

  15. Personal “Drivers” • Commercial & Economic Viability • Stand on our own 2 feet • No Hand-out but Hand-up • Succession Planning • Allow Senior Managers to Step up • Training Program through Hands-on Exchange • Seamless Relationship • Suppliers / Manufacturers / Customers

  16. Projection – High Level

  17. Challenges • Mindset • Very Traditional and Institutional • Sugar vs Cane • Destructive Behaviour • Ego-driven Outputs • Stressing of machineries • Money will Fix Everything • Over $100m spent in the last 3 years • Always Someone else’s Fault • Everyone is a Sugar Expert • Lack of Good Competent People

  18. Medium Term Strategy • Ethanol Plant • Ability to switch from Sugar (& Molasses) to Ethanol • Sugar Refinery and Packaging • Value-adding for Pacific Consumption • Satellite Juicing Stations • Localized Extraction of Juice • Conversion to Syrup • Briquetting of Bagasse

  19. Vinaka Thank You

More Related