Future of sugar industry promising

 THE future of the country’s sugar industry looks promising given the drop in volume of sugar imported, New Britain Palm Oil Ltd chief executive Nick Thompson said.

He said the firm’s sugar operation this year looked very encouraging.

“With the fall in exchange rates we’ve seen a drop in imports of sugar and retail sales of sugar have increased.

“Ramu Valley crops look very good. I think we are going to get better yields than what we have had in a while so I think things look good for sugar.”

According to the firm’s last year’s financial report, retail sales continued to dominate at 93% of total sales. 

Market share in this sector remains robust despite the strength of the kina earlier in the year and lower sugar prices worldwide – prices fell from over 19 US cents per pound in January to 16 US cents in December. 

Industrial sales improved slightly with 7% of sales due to the return of some customers. 

Thompson said: “I think we’re providing a pretty good domestic service to the PNG customers.

“I think, as a contribution, the group has been very steady over the past two or three years. And I expect another good performance this year from sugar.”

The report stated that until January 2015, the industry would continue to enjoy a 35% tariff on all imported sugar.