The relationship between Fiji Sugar Corporation\u27s profitability and sugarcane production: an empirical assessment

The Fiji Government\u27s 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\u27s 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.