Fiji's industry is based primarily on processing of agricultural products,
mainly sugarcane and coconut, and on mining and processing of gold and silver.
Other major product groups are processed foods, and garments. In 2001 sugar
production fell 14% to 293,000 cubic tons, well short of previous norms of close
to 350,000 cubic tons. The government ascribes problems with sugar production to
expiring land leases, poor mill performance, high incidence of cane burning, and
cane transportation problems. Years of underinvestment in farms, sugar mills and
power, water, and transportation infrastructure have resulted in declining
quality as well as quantity. In February 2003 the Japanese rejected a shipment
of Fiji sugar because of poor quality.
The gold industry suffered due to low world market prices (below $300 oz.)
prevailing from late 1998 to mid-2002, but faces better prospects in the sharp
rise to over $370 oz. in early 2003. Gold production is concentrated in the
66-year-old Vatukoula mine operated by Emperor Mines, which calculates that the
mine will last another 10 or 15 year.
The garment industry in Fiji began in 1988, and in 2002 produced a record
value of about $150 million. In 1996, there were at least 68 garment
manufacturing factories operating in tax-free zones, earning $141 million. About
a dozen factories were closed in 2001, with a loss of 5000 to 6000 jobs, but
other operations were expanding. Garment industry exports, at $143 million for
2001, were down, however, due to disruptions in relations with customers from
trade sanctions.
Overall, the value of merchandise trade declined about 9% in 2001, and is not
expected to surpass the $557 million of 1997 or even the $532 million of 1999
until 2003. Tourism receipts were $228.9 million in 2001, an improvement on
2000, but still constrained by post-coup political uncertainties. Expensive
power, lack of trained labor, and the limited local market have also inhibited
industrial production. Overall, the value of manufacturing in Fiji, which had
declined 6.2% in 2000, increased an estimated 11.5% in 2001, but is projected,
by the IMF, to have increased only 1.5% in 2002, with non-sugar manufacturing
down .9% in value.
