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Fiji Sector Strategy for Fruits & Vegetables and Roots & Tubers - aaacp

Fiji Sector Strategy for Fruits & Vegetables and Roots & Tubers - aaacp

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Purpose of the <strong>Strategy</strong>The overall focus of the strategy is to assist in the development of the agricultural sectorin <strong>Fiji</strong> <strong>and</strong> to improve coordination along the value chain. The strategy is designed to bedriven by the private sector in the sectors‟ development priorities such that the processaligns implementation activities, provides implementation progress measures, <strong>and</strong>identifies the resources required <strong>for</strong> implementation of each activity.The strategy has three main purposes: To better identify <strong>and</strong> communicate the constraints faced in each stage of the valuechain in order to increase competitiveness; To strengthen the linkages between producers <strong>and</strong> buyers to secure a stable supplyof fresh produce, to improve marketing <strong>and</strong> managerial skills, <strong>and</strong> to improveinvestment in the sector. The result of these activities should be in-line with theGovernments‟ own aims of reducing imports <strong>and</strong> providing a stable source of food<strong>and</strong> income security. To appeal to donors <strong>and</strong> potential technical assistance partners <strong>for</strong> support in theimplementation of the strategy as <strong>Fiji</strong> does not have sufficient resources oftechnical capacity to fully implement the strategy.Scope of the <strong>Strategy</strong>The strategy covers all stages of the value chain in the fruits <strong>and</strong> vegetables sector. Themain areas that the strategy will impact are: addressing the constraints related to thesupply of fruits <strong>and</strong> vegetables, improving coordination <strong>and</strong> the national planning of theagricultural sector, <strong>and</strong> reducing the supply-dem<strong>and</strong> mismatch.The strategy will not only assist in the development of the sector, but in the allocation ofscarce resources through the improved alignment of activities between Ministries, otherGovernment offices <strong>and</strong> donor agencies.


Marketing OptionsThere exist several outlets <strong>and</strong> market opportunities <strong>for</strong> fruits <strong>and</strong> vegetables, largelydependent on the quality. Export <strong>and</strong> tourism industries require consistent supply of highquality produce, while the local domestic market is better suited to lower quality atcheaper prices. The lowest grades can be used in processing <strong>and</strong> manufacturing.Through effective implementation of the strategy, the AAACP should allow <strong>for</strong> improvedmarket targeting according to quality dem<strong>and</strong>s.Domestic Urban MarketsThere exists an extensive network of outlets <strong>for</strong> farm produce throughout the urban areas<strong>and</strong> a steady improvement in the retailing of agricultural produce. With an increasingurban population - the result of rural-urban migration - there is a viable <strong>and</strong> sustainablelocal dem<strong>and</strong> <strong>for</strong> the marketing of fresh fruits <strong>and</strong> vegetables.Consumption of fruits <strong>and</strong> vegetables greatly depends on local availability <strong>and</strong>, there<strong>for</strong>e,seasonality. The vast majority of urban consumers prefer to buy local fruits <strong>and</strong>vegetables rather than the more expensive imports. Rural consumers tend to rely muchmore on subsistence agriculture <strong>for</strong> their daily food intake, using what is available on thefarm or from the nearby vicinity.Domestic markets are able to use a range of different quality produce, with pricesallocated accordingly.TourismThe tourism industry represents the first means by which <strong>for</strong>eign consumers can samplelocal produce. Over 500,000 tourists visit <strong>Fiji</strong> each year with an average length of stay of8.7 days. Peak season is during the month of June <strong>and</strong> July, as seen below.Monthly Tourist Arrivals


600005000040000300002000019911995199820012004100000Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecSource: <strong>Fiji</strong> Isl<strong>and</strong> Bureau of Statistics – Key StatisticsThe tourism industry dem<strong>and</strong>s high quality produce <strong>and</strong> are currently responsible <strong>for</strong> alarge amount of imported fruits <strong>and</strong> vegetables due to the lack of consistent supply <strong>and</strong>quality from local producers. Past studies, supported through anecdotal evidence, haveestimated that F$30 (US$18) million annually is spent on importing food products <strong>for</strong> thetourism sector that could be grown in <strong>Fiji</strong>. This represents a large market opportunityavailable to local producers able to provide to the specifications of the tourism sector.Local hoteliers have found that there exist a number of factors limiting the ability of localproducers to supply the tourism industry. These were:- Lower quality produce;- Inability to supply consistently throughout the year;- Inability to provide a wide range of products;- Inability to provide same-day delivery to hotel premises;- Inability to provide 30-days credit; <strong>and</strong>- Use of inappropriate packing materials;Un<strong>for</strong>tunately, few of these issues have ever been adequately addressed. There is asignificant amount of distrust between tourism <strong>and</strong> agriculture, <strong>and</strong> cooperation betweenthe two sectors has been weak.ExportsWith growing populations of Pacific isl<strong>and</strong>ers in Australia, New Zeal<strong>and</strong> <strong>and</strong> the westcoast of the USA, there is a significant export market <strong>for</strong> a range of horticulturalproducts. <strong>Fiji</strong> is well placed to take advantage of these opportunities but has un<strong>for</strong>tunatelybeen unable to do so save <strong>for</strong> a modest range of products.


<strong>Fiji</strong> faces extremely high costs of transportation compared to its competitors based inAsia <strong>and</strong> South America. However, in high value niche commodities, where consumersare willing to pay more, <strong>Fiji</strong> remains competitive. <strong>Fiji</strong> is getting increased recognition <strong>for</strong>its high quality papaya <strong>and</strong> ginger, <strong>and</strong> produces a variety of dalo that is widelydem<strong>and</strong>ed by Pacific isl<strong>and</strong> communities overseas. The <strong>Fiji</strong> br<strong>and</strong>ing is also beginning tobe used as a marketing tool, led primarily through the success of “<strong>Fiji</strong> Water”.Non-sugar Agricultural Exports (F$ 000)350,000300,000250,000200,000150,000100,00050,00002000 2001 2002 2003 2004 2005 2006 2007Source: <strong>Fiji</strong> Isl<strong>and</strong> Bureau of Statistics – Key StatisticsProcessing <strong>and</strong> Value-AddingProcessing represents a market <strong>for</strong> lower quality produce that cannot be exported or soldin the local markets. A number of companies have sought to process local fruits <strong>and</strong>vegetables available <strong>for</strong> both domestic <strong>and</strong> overseas markets. With seasonality a factorthat limits current market opportunities, processing <strong>and</strong> value-adding reflects amechanism by which produce can be sold during the off-season.Government policy has attempted to promote small scale processing in private sectorendeavors such as honey, jams, chutneys, etc. None of the initiatives have taken offprimarily due to a lack of market access <strong>and</strong> in<strong>for</strong>mation. Most agents that have producedthese products have been left on the roadside trying to sell the products to passers by.Nevertheless, with high imports of processed products, there exists an untapped market inthese products.


Issues Affecting the Value ChainThere are a number of factors that affect the value chain development <strong>and</strong> investment inagriculture.Farm Structure <strong>and</strong> L<strong>and</strong> TenureAccess to l<strong>and</strong> is often described as the biggest impediment to the development of asustainable agricultural sector with access to capital. L<strong>and</strong> tenure in <strong>Fiji</strong> may be broadlycategorised into groups: Native L<strong>and</strong> (over 80%), Crown L<strong>and</strong> <strong>and</strong> Freehold l<strong>and</strong> (eachless than 10%). Native l<strong>and</strong> cannot be converted to freehold tenure <strong>and</strong> the government isreluctant to acquire native l<strong>and</strong> <strong>for</strong> crown l<strong>and</strong> purposes except <strong>for</strong> essential publicservices such as road networks <strong>and</strong> basic infrastructure.Under the Agricultural L<strong>and</strong>lord <strong>and</strong> Tenant Act (ALTA), most farms on Native l<strong>and</strong> acton 30-year leases. Since 1997, a total of 7669 leases have expired. Between 2008 <strong>and</strong>2017, an additional 4004 will expire. After consultations between the tenants, thel<strong>and</strong>owners <strong>and</strong> the Native L<strong>and</strong> Trust Board (NLTB), most of these leases have not <strong>and</strong>will not be renewed; instead returning to the local mataqali (clan) 1 . All consultationsrequire that the views of all representatives of the mataqali be considered. In anincreasingly mobile society, finding <strong>and</strong> getting agreement from all representatives is anoft-cited cause <strong>for</strong> the protracted nature of the negotiations.Uncertainly as to the renewal of leases has directly impacted investment in agriculture.Farmers are unwilling to make investments which cannot be recuperated. Likewise,financial institutions are unlikely to give loans to farmers who may be <strong>for</strong>ced to relocate.The end effect of this is a reduction in the productive efficiency of the l<strong>and</strong> as fertilisersare used more sparingly, soil conversation techniques ignored, <strong>and</strong> irrigation deemed lessimportant. Farming hence becomes about optimal short-term output with minimal inputcost with complete disregard <strong>for</strong> future production.In many cases, returned l<strong>and</strong> lies idle. In other cases, Extension services have claimedthat the l<strong>and</strong> can be up to 40% less productive in the years following return to themataqali. This is partially attributable to a reduction in the productive efficiency of thesoil, but also to a lack of farm training <strong>and</strong> awareness of new tenants. New tenantsfrequently lack the technical knowledge <strong>and</strong> financial means to invest to turn the l<strong>and</strong>into a commercial enterprise.Access to prime agricultural l<strong>and</strong> is fiercely fought after by both native <strong>Fiji</strong>ans <strong>and</strong> Indo-<strong>Fiji</strong>ans. Freehold l<strong>and</strong> can be bought or leased by anyone; its high price reflecting its1 Between 1991 <strong>and</strong> 1999, cultivated l<strong>and</strong> area decreased by 13.4%; the main reason cited being the nonrenewalof ALTA leases.


scarcity. Native Reserve L<strong>and</strong> can be leased to <strong>Fiji</strong>ans acting as trustees on behalf of theowners; an arrangement that has been used <strong>for</strong> tourism <strong>and</strong> <strong>for</strong>estry ventures.Even through l<strong>and</strong> may be available to the mataqali, it is not often used <strong>for</strong> commercialpurposes but rather <strong>for</strong> subsistence <strong>and</strong> a few cash crops without financial rentalpayments. Some chiefs are unwilling <strong>for</strong> villages to personalise l<strong>and</strong> <strong>for</strong> themselves, <strong>and</strong>prefer profits to be shared by the community. Increased cash cropping <strong>and</strong> monetizationof the rural economy has put traditional allocation systems under pressure <strong>and</strong> madedisputes more common.Access to Finance <strong>and</strong> Implications on Communications & TransportationBeyond the sugar industry the role of microfinance institutions <strong>and</strong> insurance companieshas been neglected. Very little funding is available <strong>for</strong> agricultural producers primarilydue to the high transaction costs involved <strong>and</strong> little collateral available. Insurance toofaces very high in<strong>for</strong>mation costs, <strong>and</strong> imposes high premiums due to the prevalence ofcyclones in the region. To succeed, both of these industries need assistance that ensuresreadily accessible in<strong>for</strong>mation <strong>and</strong> much-improved dialogue with the agricultural sector.In underst<strong>and</strong>ing the potential role <strong>for</strong> microfinance in creating opportunities <strong>for</strong> selfemployment<strong>and</strong> poverty alleviation, there are however a number of issues to beconsidered. Not least of these is the low dispersed population base which makes itextremely difficult to achieve economies of scale. Comprising more than 300 isl<strong>and</strong>s,these problems are exacerbated. As such, its is the main isl<strong>and</strong>s of Viti Levu <strong>and</strong> VanuaLevu that have the best conditions <strong>for</strong> establishing sustainable microfinance programs.Low population densities <strong>and</strong> physical conditions also reduce the scope <strong>for</strong> effectivecommunication <strong>and</strong> transport networks. A large number of isl<strong>and</strong>s are only accessible bysea. The large number of small, thinly populated isl<strong>and</strong>s spread over a large area are amajor constraint to the development of effective transport services, <strong>and</strong> in many casesservices are irregular <strong>and</strong> infrequent. Many of the outer isl<strong>and</strong>s have limitedcommunications facilities, making contact with the capital difficult. The lack of transport<strong>and</strong> communication facilities make it difficult <strong>and</strong> expensive <strong>for</strong> programs to serve themore isolated isl<strong>and</strong>s.Coordination along the Value ChainPoor communication <strong>and</strong> in<strong>for</strong>mation dissemination along the value chain has been themain prohibiting factor in effective coordination of activities. Without effectivecoordination, farmers remain unaware of up-to-date developments in the market, whilebuyers <strong>and</strong> exporters are unable to receive consistent quantities of produce of varietiesthat are in dem<strong>and</strong>. Middlemen have an important role in liasing between the farmer <strong>and</strong>buyer, although in<strong>for</strong>mation asymmetry can often leave both parties vulnerable.


Addressing these gaps in in<strong>for</strong>mation <strong>and</strong> reducing vulnerability requires the timelydissemination of data, specifically price fluctuations <strong>and</strong> market developments, in amanner that is easily accessible by all urban <strong>and</strong> rural dwellers. Similarly, there needs tobe better in<strong>for</strong>mation relayed to <strong>and</strong> from agro-input supplier. To address the needs of themarket, input suppliers need to be aware of the varieties dem<strong>and</strong>ed, along with the mostappropriate fertilisers <strong>and</strong> chemicals required.Market AccessCoordination <strong>and</strong> lack of in<strong>for</strong>mation is an issue that further relates to market access.International markets require the establishment of Bilateral Quarantine Agreements(BQA‟s). Un<strong>for</strong>tunately, these can take a number of years. Though <strong>Fiji</strong> has the capability<strong>and</strong> the market access opportunities to break into new export markets, <strong>Fiji</strong>‟s Quarantineservice been slow in its progress to negotiate BQA‟s with other countries despiteexporters identifying specific market opportunities <strong>for</strong> fruits <strong>and</strong> vegetables in Australia,New Zeal<strong>and</strong> <strong>and</strong> the USA.In order to improve export competitiveness, it is necessary that Bilateral QuarantineAgreements be negotiated <strong>and</strong> en<strong>for</strong>ced, regulatory supervision of the operations of theHigh Temperature Forced Air (HTFA) facility 2 required, quarantine rules <strong>and</strong> regulationsthat minimize risk but facilitate trade <strong>and</strong> allow farmers access to improved seeds be<strong>for</strong>mulated <strong>and</strong> implemented, <strong>and</strong> public awareness on the need <strong>for</strong> quarantine developed.<strong>Fiji</strong> has made little progress in its ability to meet quarantine requirements. The adoptionof new pest risk assessment <strong>and</strong> industry consultation procedures pose a significantproblem <strong>for</strong> exporters. These can be costly <strong>and</strong> increase the vulnerability of small exportindustries to the quarantine procedures of larger importing countries. The addeddifficulties of meeting the increased dem<strong>and</strong>s placed on Quarantine by the Sanitary &Phytosanitary (SPS) Agreement have further been to the detriment of the exportcommunity. Australia <strong>and</strong> New Zeal<strong>and</strong> are <strong>Fiji</strong>‟s dominant export markets, but bothimpose strict phytosanitary requirements that limit the competitiveness of <strong>Fiji</strong>‟s exports.Legislation aimed at curbing the inflow of invasive plant <strong>and</strong> animal species has beenstrongly en<strong>for</strong>ced, <strong>and</strong> consignments found with live insects are subject to expensivem<strong>and</strong>atory tests. Fumigation, together with the costs of insect identification, significantlyincreases exporting costs, reducing competitiveness. More importantly, fumigationsubstantially reduces the shelf life <strong>and</strong> marketability of the product, particularly if asecond fumigation is undertaken.It is only in hindsight that <strong>Fiji</strong>‟s Quarantine service could have benefited from technicalassistance in the preparation of submissions to importing country‟s quarantine authorities.<strong>Fiji</strong> has taken on the commitments implied by the SPS Agreement, without the supportingchanges in human resources <strong>and</strong> institutional structures.2 All fruit fly commodities <strong>for</strong> export must pass through the facility prior to export under Quarantineregulations.


<strong>Fiji</strong>‟s lack of financial <strong>and</strong> technical resources prevent the full en<strong>for</strong>cement of CODEXst<strong>and</strong>ards, particularly among the smaller domestic food processing <strong>and</strong> h<strong>and</strong>lingoperations. This lack of domestic compliance does not make it possible to en<strong>for</strong>ceCODEX st<strong>and</strong>ards on imports, which leaves <strong>Fiji</strong> vulnerable to the dumping of poorquality foods.Dependency on H<strong>and</strong>-outs Rather than EntrepreneurshipThe dependency syndrome on the Ministry, which has largely fuelled the variousassistance programmes, is a major constraint to agricultural development in the <strong>Fiji</strong>. It hasdiscouraged farmers particularly indigenous <strong>Fiji</strong>ans to develop entrepreneurial skills <strong>and</strong>individual initiative. There is an urgent need to promote entrepreneurship in the privatesector.In any development of the agricultural sector, line-Ministries must have an active role.Investment incentives must be appropriate not only to entice local entrepreneurs but also<strong>for</strong>eign, which has been greatly lacking over the past decade.


<strong>Sector</strong> <strong>Strategy</strong> ObjectivesThe overall objective of the strategy is to increase farmer <strong>and</strong> other sector incomes byenhancing the ability of the sector to respond to the need <strong>for</strong> increased production <strong>and</strong>value addition, thus also better meeting dem<strong>and</strong> within the country that is currently beingcatered <strong>for</strong> through imports, <strong>and</strong> developing export earnings.Stakeholders identified five critical areas <strong>for</strong> intervention. However, the 5 areas ofintervention have to be part of a coordinated action plan to be affective. In isolation theywould merely perpetuate the lack of overall structure <strong>and</strong> in any case would require along period of gestation.Objective 1: Service System in place <strong>for</strong> collection <strong>and</strong> grading of crops <strong>for</strong>processing, or selling <strong>and</strong> distribution <strong>and</strong> ensured quality <strong>and</strong> quality consistencyof productionThe collection of crops <strong>for</strong> primary processing, selling <strong>and</strong> distribution needs dramaticupgrading if the industry is to survive <strong>and</strong> reduce imports. Participants at the workshopidentified that a collection <strong>and</strong> accumulation system needs to be developed. The systemcan take any of a number of <strong>for</strong>ms proven to be effective in best international practice:Wholesaler marketing commercial operation managed, run <strong>and</strong> owned by farmergroups, or by a private sector company, with collection centres,Farmer markets, perhaps with auctionsS<strong>and</strong> alone collection centresCollection centres with privately owned packaging <strong>and</strong> storage.However, collection centres or farmer markets in themselves do not provide a solutionunless they are part of a chain that translates market dem<strong>and</strong> into delivery of produce <strong>and</strong>products. The system would have the potential to act as a marketing facility, as a providerof extension services <strong>and</strong> as an in<strong>for</strong>mation centre.The centres would be an important component in a chain improving the links between thebuyers <strong>and</strong> the growers. Participants argued that collection centres should provide <strong>for</strong>product warehousing able to segregate varieties, grades <strong>and</strong> pick dates, as well as chillerfacilities. They should be able to source direct from the farmers <strong>and</strong> to deliver to themarkets. As an in<strong>for</strong>mation provider, they should directly contribute to improvedknowledge of the needs of the market <strong>and</strong> to better planning throughout the value chain.Clearly, what the stakeholders want has to go beyond a mere facility to a proactivemechanism that has specific in<strong>for</strong>mation on what buyers want to source, is able to conveythe opportunities to farmers <strong>and</strong> help them produce the right varieties <strong>and</strong> qualities at aprice that would be viable, <strong>and</strong> then is able to provide the infrastructure <strong>for</strong> ensuring thatfarmers can procure the needed inputs <strong>and</strong> assist in good post harvest h<strong>and</strong>ling, transport,


grading, washing <strong>and</strong> packaging using infrastructure that will incorporate collectioncentres as a part of its facilities.An export oriented wholesaler marketing model would need to cover the entire valuechain as below:Export Development CorporationImportsResearchSuppliersProcurementSeed FarmTissue CultureFALaboratory RServicesExports ECold StoresRefersContract Marketing RMarketTrainingSSupermarketsMSub-contractsto GovernmentFarmers &Private <strong>Sector</strong>How many such systems would be optimal <strong>for</strong> the country is to be determined along withthe structure <strong>and</strong> ownership <strong>and</strong> management that would be acceptable in the nationalcontext.Objective 1: Anticipated outputs <strong>and</strong> objectively verifiable indicators (OVIs)1. Conduct a feasibility study into collection systems <strong>and</strong> set up three systems on atrial basis: in the West (Sigatoka), Central <strong>and</strong> Northern Divisions. Resources maynot allow that <strong>and</strong> it be worth considering starting with one full system withcollection centres at the other two locations2. Increased number of farmer groups <strong>and</strong> cooperatives.3. Training sessions conducted through farmer groups to educate lead farmers.4. Provide access to finance on viable terms <strong>and</strong> conditions <strong>for</strong> farmers through avariety of mechanisms including joint applications by groups, a commercialwholesaler marketing operation <strong>and</strong> collateral in the <strong>for</strong>m of contracts which canbe used in sourcing income <strong>and</strong> equipment.5. Better use of grading, post-harvest h<strong>and</strong>ling <strong>and</strong> primary processing.


The Suggested Activities to Achieve Objective 1:1: Service System in place <strong>for</strong> collection <strong>and</strong> grading of crops <strong>for</strong> processing, or selling <strong>and</strong>distribution <strong>and</strong> ensured quality <strong>and</strong> quality consistency of production• Identify 3 districts to develop support <strong>and</strong> collection systems. Eg: Vanua Levu,Sigatoka <strong>and</strong> Ba. Sites <strong>for</strong> collection systems should be chosen by users first (farmers,buyers), can be challenged by specialists.• Request an immediate preliminary feasibility study by stakeholders.• Decide who should own/manage collection system <strong>and</strong> points. Who should directcollection points? Create a coordination committee of farmers <strong>and</strong> other shareholders.AMA or Quarantine or <strong>Fiji</strong> Food Processors proposed. Farmers retain ownership ofproduce until final buyer takes title.• Potential solution: Appoint a managerial board to run system composed offarmer/processor/ buyer/hotel/extension service representatives. Draft articles ofassociation, governance <strong>and</strong> accounting structure (est. Max. 7 people). eg: End of yearprofits should be reinvested <strong>and</strong> balance distributed.• Check legislation on cooperatives, legal <strong>for</strong>ms <strong>and</strong> taxation of activities (VAT, Inputduties, Export Zones production restrictions, etc.) Suggested slight modification oftraditional co-op structure with good training <strong>and</strong> counselling support to improvesustainability.• Plan full extent of potential Collection Systems. Consult existing service providers -identify potential partners <strong>for</strong> financing <strong>and</strong> implementation. Eventually Min of Ag. topromote concept to potential shareholders - press release, radio.• Collection systems can be based on collection points (CP) that serve about 20-30farms - eg: Kibbutz model. Manual grading to 4 or 5 categories only. Sites


Collection Points <strong>for</strong> improvement first.• Set up system of rural Collection Points with simple washing, grading, cool hygienicstorage, selling <strong>and</strong> phone connection facilities. Farmers tell collection points whenthey will harvest. Collection point manages communications with potential buyers,organises collection time <strong>and</strong> transport.• Design <strong>and</strong> provide a cold chain <strong>for</strong> produce intended <strong>for</strong> premium markets.• Finance Systems <strong>for</strong> 4 years min. donors, government, community,exporters/processor. Initial fund 2/3 grant 1/3 private - reducing to zero after 5 years.Investigate a framework to fund collection point/centre (CP) with commission fromfarmers/buyers provided good service is given.• Collection point quality control. Graders need to be trained in low cost roller ways,tables, pallets, <strong>and</strong> clear bags, buildings. CP: Opening times 04:00 to midday.Introduce appropriate packaging technology & train Processors <strong>and</strong> Collection Pointmanagers.• Food technology capacity building needed with processors <strong>and</strong> exporters.• Evolution from simple collection point to distribution <strong>and</strong> selling agency <strong>and</strong> trainingplat<strong>for</strong>m. List additional potential services <strong>and</strong> plan development. eg: Collectionpoints can also be used <strong>for</strong> distribution of inputs, seeds, training of farmers, Improveeffectiveness of extension services, market in<strong>for</strong>mation.• Collection point farmer records as collateral <strong>for</strong> small loans. Also becomes weeklysocial, in<strong>for</strong>mation & training activity centre <strong>for</strong> farmers.


Objective 2: Market Access <strong>and</strong> Market Research In<strong>for</strong>mation Available to all <strong>and</strong>Linkages Built Between Market Actors <strong>and</strong> FarmersThe agricultural sector is characterised by in<strong>for</strong>mation asymmetry that has left the sellersvulnerable <strong>and</strong> at risk from exploitation, as market prices are dictated by the itinerantbuyers. Participants do not believe that up-to-date market in<strong>for</strong>mation is disseminated in atimely <strong>and</strong> efficient manner, which has prevented full price <strong>and</strong> quality transparency.Insufficient in<strong>for</strong>mation attributes to the issue of insufficient planning throughout thevalue chain. Representatives from the tourism industry argued that domestic produce isnot consistent in supply or quality, <strong>and</strong> much is not of the dem<strong>and</strong>ed varieties. Hotels <strong>and</strong>resorts plan menus <strong>and</strong> activities up to a year in advance, <strong>and</strong> can provide little flexibilityin their requirements. Hotel storage space <strong>for</strong> fresh produce is only <strong>for</strong> up to a week,which necessitates that produce be regularly delivered to the premises with littleadvanced notification. In any case, this would necessitate extending seasonality ofproduce. With the current inability of the agricultural sector to cater to the tourismindustry, it is unsurprising that most hotels import approximately 70% of their producerequirements.Improving the channels of communication between buyers <strong>and</strong> producers is necessary tofully utilise the links between agriculture <strong>and</strong> the domestic market. Producers remainrelatively ignorant of buyer dem<strong>and</strong>s, having gained little feedback through the supplychain. The lack of dynamic communication between market actors <strong>and</strong> farmers impedessuccessful planning along the supply chain to the extent where farmers have littleknowledge of what <strong>and</strong> when to harvest to meet dem<strong>and</strong> without flooding the market.Representatives of the exporters identified market research as a priority issue. Exportersare unaware of market opportunities overseas <strong>and</strong> have little access to data with which toexplore. Those who wish to find new markets are often constrained by the lack of fundingavailable to attend trade fairs <strong>and</strong> promotional events. Trade promotion of agri-business issomewhat absent in <strong>Fiji</strong>, <strong>and</strong> greater emphasis is needed in Government policy. Thisincludes marketing <strong>and</strong> of the „<strong>Fiji</strong> br<strong>and</strong>‟, which has proven in other businesses to be apositive marketing tool.In<strong>for</strong>mation on prices is not enough, farmers need to be guided as to what produce toproduce, how to do so <strong>and</strong> how to ensure quality. This is best done by extension workers<strong>and</strong> can be organised by the collection system.In developing <strong>Fiji</strong>‟s export potential it is important to improve Quarantine protocols toensure quick access to potential markets. Each month wasted in devising protocolsrepresents the loss of scarce <strong>for</strong>eign revenue <strong>and</strong> the further development of agri-businessin <strong>Fiji</strong>.Workshop participants recognised the lack of structure in the export market. Exportersare in fierce competition between themselves, <strong>and</strong> there is little coordination of ef<strong>for</strong>tsbetween the government, protocol agencies, the Ministry of Primary Industries <strong>and</strong> the


private sector. The lack of structure has prompted suggestions that a joint Export &Tourism Council be established, as well as the need <strong>for</strong> an Exporter Agri-businessAssociation or council, to better synchronize the sector <strong>and</strong> any policy-making decisions.Objective 2: Anticipated outputs <strong>and</strong> objectively verifiable indicators (OVIs)1. Market price in<strong>for</strong>mation disseminated through SMS/radio to improvetransparency.2. Improved channels of in<strong>for</strong>mation between market actors <strong>and</strong> producers, allowingbetter knowledge of the market <strong>and</strong> appropriate planning.3. Increased number of representatives from the <strong>Fiji</strong>an agricultural sector at tradefairs <strong>and</strong> promotional events.4. Improved access to overseas markets through improvements in Quarantineprotocols <strong>and</strong> procedures.5. The set-up of an Export & Tourism Council <strong>and</strong> an Exporter Agri-businessAssociation that improves coordination <strong>and</strong> synchronisation of the value chain<strong>and</strong> of government policy.The Suggested Activities to Achieve Objective 2:2: Market Access <strong>and</strong> Market Research In<strong>for</strong>mation Available to all <strong>and</strong> Linkages Built BetweenMarket Actors <strong>and</strong> Farmers• Start Dairy livestock feed import substitution programme: lower quality criteria but good prices if rightmix achieved.• Price <strong>and</strong> Quality in<strong>for</strong>mation currently collected from 10 municipal markets. Weekly highest <strong>and</strong>lowest prices need to be disseminated by SMS/radio - ITC trade at H<strong>and</strong> required.• ITC should undertake as a matter of priority a market study of the dem<strong>and</strong> <strong>for</strong> higher value produce <strong>and</strong>processed products covering the domestic <strong>and</strong> export markets.• Government should create <strong>and</strong> support the service, not administer it. Collection of price <strong>and</strong> qualityin<strong>for</strong>mation takes place already. 10 In<strong>for</strong>mation collection officers exist with database (ex. FAO Agrimarketproject). Dissemination by radio 15 minutes free of <strong>Fiji</strong> Radio 1 (AM). Mon/Wed/Thursafternoon. Should be at 06:00 <strong>and</strong> 19:00 along with pesticide, fertiliser <strong>and</strong> fungicide application advice<strong>and</strong> farming region weather service.• Consistency of price in<strong>for</strong>mation on Ministry of Ag. web site <strong>and</strong> database must be improved - qualityof data variable - train collectors - provide with real-time SMS price/quality capture facility (ITC Tradeat h<strong>and</strong>) <strong>and</strong> train in quality control. Current market prices to be communicated through radio in <strong>Fiji</strong>an,Hindu <strong>and</strong> English throughout <strong>Fiji</strong>.• Educate lead farmers in FCA Collection point returns farming to social activity more attractive to


sustaining young farmers & transfer of know-how/experience, competitions, etc. If Min of Ag. Facilityin FCA cannot deliver farmer entrepreneurship <strong>and</strong> marketing training TPAF could be used (Training<strong>and</strong> productivity authority of <strong>Fiji</strong>), <strong>Fiji</strong> Institute of Technology; Training <strong>for</strong> business management -needs syllabus review <strong>and</strong> upgrading.• Promote business management specific modules <strong>for</strong> agricultural exporters, in collaboration betweenTPAF, FTIB, agricultural department in order to increase capacities to access <strong>and</strong> use financialinstruments.• As a pilot, the collection system proposed can market to export buyers in addition to supermarkets,restaurants <strong>and</strong> hotels.• Set up association representing all stakeholders (<strong>Fiji</strong> Exporter Council to exp<strong>and</strong>). Start by holdingmeetings every month with farmer <strong>and</strong> Collection Point managers (groups), marketing agencies,middlemen <strong>and</strong> hotel management to identify volume to plan <strong>for</strong> planting programme. Progress toin<strong>for</strong>mation dynamic collection system including varieties <strong>and</strong> characteristics required.• Identify right varieties to grow based on market dem<strong>and</strong> <strong>and</strong> cooking or processing characteristicsrequired (food technology specialists eventually required).Suggestion: All stakeholders supply market info - distribute via Nature's Way or Ministry ofAgriculture. Revise monthly purchasing officers orders index report AMA (include characteristics,varieties, volumes, prices paid in previous month) - Min of Ag Extension to disseminate to farmers byradio / SMS (trade at h<strong>and</strong>). Min of Ag Extension to disseminate to farmers by radio / SMS (trade ath<strong>and</strong>).• Encourage contracts between local agricultural agents/extension officers <strong>and</strong> external commercialmarket agents.• Contract between suppliers/buyer - general terms <strong>and</strong> conditions to be developed by working group <strong>and</strong>established as a voluntary code of practice with regular buyers <strong>and</strong> middlemen.• Extend trial supplies to major resorts to test <strong>and</strong> experience dem<strong>and</strong> from tougher buyers, be<strong>for</strong>e export.• Encourage smallholder farmers groups to exp<strong>and</strong> volumes of same variety produce & improve quality.Evolution from simple Collection Points to distribution <strong>and</strong> selling agency <strong>and</strong> training plat<strong>for</strong>m. Listadditional potential services <strong>and</strong> plan development.• Adequate resourcing, legislation / cabinet level backing needed <strong>for</strong> council. Investigate reason <strong>for</strong>previous failures of councils. Resurrect industry council or National Export Strategic team?• Collection points can also be used <strong>for</strong> distribution of inputs, seeds, training of farmers, improveeffectiveness of extension services, market in<strong>for</strong>mation.• Long term plan: Build capacity in farmers to organise <strong>and</strong> <strong>for</strong>m a farmer association (FAO & MAF).


• Advice process needs review <strong>and</strong> upgrading, especially <strong>for</strong> new products <strong>and</strong> markets. <strong>Fiji</strong> Promotionthrough AMA/All Stakeholder Association Council?• Set up processed food exports association to ensure fair prices, volumes <strong>and</strong> st<strong>and</strong>ards. [related toexport/retail prices]. Membership of fair trading schemes should be encouraged.• Start br<strong>and</strong>ing <strong>for</strong> origin (promotion) or Collection Points with competitions <strong>for</strong> best produce oncequality consistency improves.• Market <strong>and</strong> promotion support fund required: FJ$50,000 - FJ$80,000. Promotional material exhibitions/ market research.• Trade fairs participation (promotion) as education <strong>for</strong> processors <strong>and</strong> Collection Point managers.• Trade facilitation <strong>and</strong> technical advice - WTO; info to be passed on to exporters, processors,middlemen, Collection Points <strong>and</strong> farmers through MPI - also announced by radio/SMS services.• Return to old quarantine protocol system <strong>for</strong> exporters that worked well. Involve all stakeholders indesign <strong>and</strong> operational decisions.• Contact agencies <strong>for</strong> export clearance. Advice process needs review <strong>and</strong> upgrading, especially <strong>for</strong> newproducts <strong>and</strong> markets - it takes too long now.• Liaison to be set-up with PITIC (NZ, Aus, Jap, China, Taiwan, USA) or <strong>Fiji</strong> trade commission /embassies to promote <strong>Fiji</strong> products in different markets, such as: bio cosmetics, nutrition, Aromatics,colorants <strong>and</strong> flavourings, beverages...• FTIB should develop relationships with establish companies <strong>and</strong> advise new exporting business - butin<strong>for</strong>mation is not easily accessible.• FDB/Agri-business export facility to be rein<strong>for</strong>ced: requests to develop business proposals <strong>and</strong> provideadvice. In<strong>for</strong>mation needs to be recorded.• FTIB to provide direct in<strong>for</strong>mation to financial institutions (FTB, Forum,/Market-support fund, Privatebanks) <strong>and</strong> investors <strong>for</strong>a.• FDB/Export facility need more in<strong>for</strong>mation on lending facilities from financial institutions in order toadvise clients. Suggestion: <strong>Fiji</strong> Promotion through AMA/All Stakeholder Association Council.• Rein<strong>for</strong>ce inter Governmental technical negotiating team with temporary private sector envoys.


Objective 3: Rural Development Policy, L<strong>and</strong> Use/Rights <strong>and</strong> Agricultural <strong>Sector</strong>Finance Aligned to Successful Models ElsewhereL<strong>and</strong> issues, farm fragmentation <strong>and</strong> little support from Government <strong>and</strong> supportingindustries have rendered the agricultural sector stagnant <strong>and</strong> with little investment –domestic or <strong>for</strong>eign. Developing the sector from subsistence into a commercial enterprisehas not been successful. The political problem of l<strong>and</strong> has not encouraged thedevelopment of agri-business <strong>and</strong> many farmers <strong>and</strong> investors have given up interests inagriculture in <strong>Fiji</strong>.Little farm concentration exists, particularly in the Central Division. The distance frommarkets <strong>and</strong> the fragmentation of farms have dramatically increased transportation costs.Farmer groups rarely exist, so individual farmers must bear the costs directly.Rural development policy has not been adequate. There is a need <strong>for</strong> the zoning of cropsaccording to agro-ecological conditions to prolong harvests <strong>and</strong> to make full use ofmarket options. Government subsidies have not been based on the agro-ecologicalpotential of the l<strong>and</strong>, but rather appears to be based on lobbying power. Credit allocation,through Government subsidies, to farmable areas has been uneven in its distribution.Government policy in agriculture has remained in the <strong>for</strong>m of h<strong>and</strong>-outs, which have hadlittle success over the years <strong>and</strong> provided little incentive <strong>for</strong> farmers to develop. The roleto provide finance through supporting industries has, however, not been developed. Littlecapital <strong>and</strong> equipment finance is available <strong>for</strong> small farmers, <strong>and</strong> there is no facility inplace to provide specialised finance <strong>for</strong> agricultural credit on a large scale.Finance institutions have remained reluctant to invest in agriculture due to the hightransaction costs that exist. It is difficult to gather reliable <strong>and</strong> accurate in<strong>for</strong>mation withwhich they can make their analysis. Similarly, small holder farmers have little collateralwith which to offer to the banking institutions.To overcome this problem, other models have developed including joint liability byfarmer groups, contracts between farmers <strong>and</strong> buyers which can be offered as security tothe financial institutions <strong>and</strong> through a wholesaler marketing company. In developingcollection systems <strong>and</strong> even ccentres, an important feature could be the issuing of writtencontracts. It may be necessary <strong>for</strong> the contracts to stipulate that farmers sort produce byquality (taste, size, blemishes <strong>for</strong> different markets) or have produce relegated to thelower quality category. Once systemised, this will lead to higher overall prices <strong>and</strong> thebetter supply of high quality produce to the market.The <strong>Fiji</strong>an agricultural sector is also devoid of insurance. The prevalence of adverseweather conditions, notably cyclones <strong>and</strong> flooding, result in extremely high riskpremiums <strong>for</strong> undertaking insurance. No farms can currently af<strong>for</strong>d the premiumsrequested, <strong>and</strong> as such must risk their livelihoods on weather patterns. Most schemesoperating in the world depend on substantial state subsidies.


As with financial institutions, insurance companies face very high transaction costs inservicing agriculture. There is insufficient weather data available to allow <strong>for</strong> appropriateanalysis, particularly in rural areas. To improve <strong>and</strong> cater <strong>for</strong> this, the meteorologicaloffice needs to exp<strong>and</strong> <strong>and</strong> install weather measuring stations in farm areas <strong>and</strong> toaccredit these stations <strong>for</strong> weather risk insurance work. In addition, there is a need toexplore <strong>and</strong> negotiate with donors <strong>and</strong> governments of the Pacific region to establishregional insurance <strong>for</strong> weather risks, as in the Caribbean.Objective 3: Anticipated outputs <strong>and</strong> objectively verifiable indicators (OVIs)1. Political review of the l<strong>and</strong> lease issue.2. Improved zoning of agriculture.3. Increased number of contracts between buyers <strong>and</strong> sellers that are adhered to byboth parties. These need to be based on either a wholesaler exporter company oron incentives rather than en<strong>for</strong>cement which is notoriously difficult when dealingwith small farmers as well as being politically sensitive.4. Increased use of credit facilities of financial institutions (commercial banks, <strong>Fiji</strong>Development Bank <strong>and</strong> National Centre of Small <strong>and</strong> Micro EnterpriseDevelopment) rather than h<strong>and</strong>-outs from Government.5. Exploration of insurance activities into agriculture in both <strong>Fiji</strong> <strong>and</strong> the PacificIsl<strong>and</strong> Countries.The Suggested Activities to Achieve Objective 3:3: Rural Development Policy, L<strong>and</strong> Use/Rights <strong>and</strong> Agricultural <strong>Sector</strong> Finance Aligned toSuccessful Models Elsewhere• Encourage grouping of smallholder farmers to exp<strong>and</strong> volumes of same variety produce <strong>and</strong> improvequality.• Contract between suppliers/buyer - general terms <strong>and</strong> conditions to be developed by working group<strong>and</strong> established as a voluntary code of practice with regular buyers <strong>and</strong> middlemen• AMA to plan / in<strong>for</strong>m / ensure complementary activities with farmers in rural areas who can't easilyget to market.• Attract young farmers by field leases <strong>for</strong> at least 15 years, mechanisation, making farming profitable<strong>and</strong> improving on the field practical training.• Current programmes need to be extended beyond "convenient" Sigatoka valley development. Eg: <strong>for</strong>drainage, greenhouse, infrastructure etc.. should be replicated elsewhere (Min of Agriculture).Government funding 2/3 farm funding 1/3 on equipment.


• Request an immediate preliminary feasibility study by stakeholders, led by ITC with support fromFAO <strong>for</strong> first 3 Collection Systems.• Funding: donors, government, community, exporters/processor. Initial fund 2/3 grant 1/3 private -reducing to zero after 5 years.• Farmers should retain ownership of produce until final buyer takes title.Farm friendly loans required to increase production systems - could be more effectively disbursed <strong>and</strong>managed through Collection Points. Inputs (low interest, no collateral).• Working capital needed to develop tribal l<strong>and</strong> (mataqali) into commercially viable farms.• Collection point farmer records as collateral <strong>for</strong> small loans. Also becomes weekly social, in<strong>for</strong>mation& training activity centre <strong>for</strong> farmers.• Explore farmer to farmer lending potential / appetite to increase ownership of grants <strong>and</strong> success.Identify potential donor, government agency, private sector support to finance pilot proposal <strong>and</strong>subsequent roll-out.CCP• More Micro ($2000) / Medium ($10,000) / Large ($50,000) NCSMED financing needed - withdifferent collateral requirements than current.• <strong>Fiji</strong> Development Bank - provides credit <strong>for</strong> agriculture: 40% loan, 60% grant.


Objective 4: Improved Quality <strong>and</strong> Consistency of ProductionBuyers from across the value chain have consistently asserted that quality <strong>and</strong>consistency in supply are not satisfactory. The implications are that large amounts oflocally-available produce is imported while exporters risk being unable to maintain theircontracts overseas. Participants from the tourism industry argued that they would bewilling to source locally, but will not commit until year-round supply can be guaranteed.In overseas markets, exporters are at great risk of loosing markets altogether if <strong>Fiji</strong>develops a reputation of being unreliable.It is unlikely in many cases to provide year round supply of particular produce but stepscan be taken to extend seasonality of supply. The requirement of varieties varies a greatdeal depending in part on the <strong>for</strong>m in which produce is going to be consumed. It isimportant to encourage production of the varieties dem<strong>and</strong>ed by hotels, restaurants <strong>and</strong>export markets. Both the above would be greatly assisted by a tissue culture laboratorythat will assist in developing seasonality, varieties <strong>and</strong> planting material. Finally, whilethe local market is price oriented, the other markets require consistent high quality whichwill require developing post harvest h<strong>and</strong>ling <strong>and</strong> use of cold chains.Much of the solution to this problem lies in improving the in<strong>for</strong>mation links between themarket <strong>and</strong> the farmer <strong>and</strong> in improving planning along the supply chain. In<strong>for</strong>mation isnot readily available to farmers <strong>and</strong> potential exporters on acceptable st<strong>and</strong>ards, theirapplication, certification <strong>and</strong> charges. Collection points may be able to collect <strong>and</strong>disseminate this in<strong>for</strong>mation once operational.Technical advice on farm input usage is required by farmers, such as fertiliser, seeds, <strong>and</strong>planting. The Ministry of Primary Industries needs to take a key role in improving accessto seeds, especially the varieties that are in dem<strong>and</strong> by the market. Koronivia ResearchStation, in cooperation with FAO <strong>and</strong>/or SPC, could do some testing to immediatelyexp<strong>and</strong> their capacity <strong>and</strong> throughput. The Government must also ensure that rogueimports of agro-inputs are not distributed through the agricultural sector. These often leadto high residues on produce. Testing facilities at Customs <strong>and</strong> at Quarantine must bedeveloped to ensure that st<strong>and</strong>ards <strong>and</strong> industry specifications are met. These facilitiesshould include a traceability system to map rogue imports.Research in agriculture must be encouraged, as it has been greatly lacking in recent years.Organic research is needed on agronomic techniques to improve returns. Extensionofficers should be given portable soil sampling kits to allow <strong>for</strong> better soil analysis wheninspecting farms <strong>and</strong> to provide advice to farmers on improving yield.It is also necessary to introduce <strong>and</strong> train processors <strong>and</strong> collection point managers inappropriate packaging technology. Collection points could be used as demonstration <strong>and</strong>training centres <strong>for</strong> new technology equipment <strong>for</strong> smallholder farmers.Objective 4: Anticipated outputs <strong>and</strong> objectively verifiable indicators (OVIs)


1. Reduced imports of agri-produce.2. Improve security of exports in the international markets.3. Increased collection <strong>and</strong> dissemination of relevant in<strong>for</strong>mation.4. On farm soil analysis <strong>and</strong> training to allow appropriate use of agro-inputs.5. Increased primary processing through appropriate packaging technology.The Suggested Activities to Achieve Objective 4:4: Improved Quality <strong>and</strong> Consistency of Production• R&D (M of Ag.) needs conduit to pass results onto industry, eg: journal, radio programme,in<strong>for</strong>mation sources (Internet & pc) in Collection Points .• Arrange farmer <strong>and</strong> Min of Ag. Extension Officer visits to markets, eg hotels, trade fairs, overseas tosee, taste <strong>and</strong> smell differences in produce <strong>and</strong> derived products.• Request an immediate preliminary feasibility study led by stakeholders with FAO training <strong>for</strong> first 3Collection Points.• Introduce <strong>and</strong> train Processors <strong>and</strong> Collection Point managers in appropriate packaging technology.Use Collection Points as demonstration <strong>and</strong> training centres <strong>for</strong> new appropriate technology equipment<strong>for</strong> smallholder farmers.• Establish traceability system - at least back to Collection Point. Provide portable sampling kits shouldbe purchased <strong>and</strong> provided to mobile testing officers.• Collection points: Develop simple grading system (less than 4 grades) per product <strong>for</strong> market. Auditperiodically. Include cleaning. Include selling/auction facilities.• Buyers committee to define collection point grades <strong>for</strong> each produce that will be harvested in early2009 by Feb 2009. Who should be on working group? Suggested: Collect data of the requirements ofdifferent buyers <strong>and</strong> centralise dissemination. Ag. Trade, AMA, Hotel <strong>and</strong> ITC sector specialists toassist.• Collection point quality control. Graders need to be trained. Required: Low cost roller ways, tables,pallets, <strong>and</strong> clear bags, buildings.• Educate young farmers.(FCA?) Collection point returns farming to social activity more attractive tosustaining young farmers & transfer of know-how/experience, competitions, etc.• Koronivia research station could do some testing to immediately exp<strong>and</strong> capacity <strong>and</strong> throughput.Currently F$140 <strong>for</strong> 1 sample per 6 months.• FAO/SPC to train Koronivia staff to improve soil testing services. USP to partner. Investigate whatequipment is needed to improve Koronivia throughput <strong>and</strong> best sources of seeds / fertiliser suppliers.• Portable soil sampling kits should be purchased <strong>and</strong> provided to mobile testing officers.• Specialise Koronivia lab <strong>for</strong> agriculture as opposed to <strong>for</strong>ensic or other purposes.• Use domestic courier services to transport soil samples to Koronivia lab to speed up response time <strong>for</strong>farmers <strong>and</strong> Collection Points (potential to reduce results delay by at least 2 weeks).


• Advice on admissible /non-admissible import specifications required by import customs inspectors.• The Department of Agriculture needs more <strong>and</strong> newer vehicles.Objective 5: Farm Inputs Match Market RequirementsFarm fragmentation, lack of cooperative farming, <strong>and</strong> poor road conditions have allcontributed to insufficient extension services being made available. Private sector farminputs <strong>and</strong> advice services are not readily accessible, <strong>and</strong> there are un<strong>for</strong>tunately noprivate sector extension services. The Extension Division of the Ministry has sufferedfrom a lack of market in<strong>for</strong>mation, insufficient training of staff, <strong>and</strong> an inadequatenumber of vehicles that can be used <strong>for</strong> field visits.Improved links must be made between extension services, market actors <strong>and</strong> seedimporters to ensure that the right varieties of seeds <strong>and</strong> agro-inputs are available tofarmers. The poor links add to the in<strong>for</strong>mation asymmetry that afflicts the industry, withfarmers lacking the necessary in<strong>for</strong>mation on what <strong>and</strong> when to grow <strong>and</strong> the marketsavailable.It is important that farmers be educated in coordinating the timing of planting <strong>and</strong> thevarieties <strong>for</strong> different markets. The tourism sector is highest during the dry season, so itmay prove optimum, <strong>for</strong> instance, to cater <strong>for</strong> the domestic (tourist) market during the dryseason <strong>and</strong> <strong>for</strong> the processing industry during the wet season.The introduction of new seeds imports according to market dem<strong>and</strong> requires thatQuarantine testing procedures <strong>and</strong> protocols be streamlined to make them as quick <strong>and</strong>efficient as possible. This testing should be in line with the planting season to maximiseyield <strong>and</strong> returns.To fully commercialise, the agricultural sector needs to professionalise farming <strong>and</strong> farmsupport services to demonstrate the value of farming as a business <strong>and</strong> its support to theenvironment. To change the mindset of stakeholders towards commercial, market-ledplanning <strong>and</strong> operations the sector must develop training programmes, with particularemphasis on the training of farmers in business skills <strong>and</strong> in the commercial aspects offarming. Training should be linked to financial support programmes.Objective 5: Anticipated outputs <strong>and</strong> objectively verifiable indicators (OVIs)1. The development of year-round production systems that use appropriatetechnology <strong>and</strong> agro-inputs.2. Increased number of farmers attending training sessions.3. Quarantine protocols <strong>and</strong> procedures that are in-line with the direction of theindustry.4. The development of farms from subsistence to commercial.


The Suggested Activities to Achieve Objective 5:5: Farm Inputs Match Market Requirements• Subsidised inputs of appropriate seeds <strong>and</strong> fertilisers to match market st<strong>and</strong>ards compliance needs <strong>for</strong>a 3-year period to kick-start industry.• Allow new seed variety imports according to market dem<strong>and</strong>. Streamline quarantine testingprocedures <strong>and</strong> protocols to make them as quick <strong>and</strong> efficient as possible - publish testing pipeline <strong>and</strong>expected results dates. Plan testing <strong>and</strong> results in line with planting seasons.• Encourage grouping of smallholder farmers to exp<strong>and</strong> volumes of same variety produce <strong>and</strong> improvequality.• Export promotion - replicate success of Western programme with Nature's Way <strong>for</strong> F&V with Min ofAg.• Set up laboratories <strong>for</strong> different purposes in different localities. Could be privately run.• Too high costs of laboratory testing <strong>and</strong> long wait <strong>for</strong> results. Upgrade Government labs to supply labtesting services across <strong>Fiji</strong> close to all major growing areas.• Identify support <strong>for</strong> training programme - service providers, donors, participants, buyers, processors.• Identify & list providers - <strong>Fiji</strong> Institute Tech, USP, Radio, TPAF, SPC..Involve Churches - tribal leaders in education/awareness on money investment/savings <strong>for</strong> farmers.• Provide training <strong>for</strong> farmers in the business world <strong>and</strong> commercial aspects of farming - first throughpilot Collection Points. Training should be linked to financial support programmes <strong>and</strong> disseminationof bank / NCSMEA financial products in<strong>for</strong>mation / advice as part of training programme package.• If the Department of Agriculture cannot deliver farmer entrepreneurship <strong>and</strong> marketing training TPAF(Training <strong>and</strong> Productivity Authority of <strong>Fiji</strong>), could be used or the <strong>Fiji</strong> Institute of Technology.Business management training requires a syllabus review <strong>and</strong> upgrade.• Develop <strong>and</strong> synchronise all year-round production systems eg:Jan-April plastic tunnels <strong>and</strong> drainage needed like with Taiwan Technical Mission. Fabricate in <strong>Fiji</strong>?May-August: coordinated planting to avoid market surpluses.Sept-Dec: Sharlon Shade materials <strong>and</strong> supplementary irrigation.• Change mindset of stakeholders to commercial market-led planning <strong>and</strong> operations.• Attract young farmers by field leases <strong>for</strong> at least 15 years, mechanisation, making farming profitable<strong>and</strong> improving on the field practical training.


<strong>Strategy</strong> Implementation FrameworkKey Partners in Implementation ActivitiesIn coordinating strategy implementation, a task <strong>for</strong>ce is to be established. This task <strong>for</strong>cewill consist of representatives from the Ministry, the private sector, the Integrated HumanResource Development Programme (IHRDP), <strong>and</strong> the Taiwan Technical Mission. Thetask <strong>for</strong>ce will be responsible <strong>for</strong> coordinating between donors, internationalorganisations, financial institutions, the private sector <strong>and</strong> Government in theimplementation of identified prioritised activities.The task <strong>for</strong>ce will be responsible <strong>for</strong> a number of activities, including: List existing development activities <strong>and</strong> projects that relate to activities describedin the strategy implementation plans. Immediately hold meetings with suggested lead implementation partners <strong>and</strong>development agencies undertaking activities related to the sector, confirm theirengagement <strong>and</strong> capacity to undertake the activities prescribed in theimplementation plans. Identify activities <strong>for</strong> appropriate partner agencies <strong>and</strong> resources required. Coordinate implementation among all stakeholders, agree start dates <strong>and</strong>determine completion dates <strong>for</strong> the activities listed in the implementation plans.Agree progress measures to be applied <strong>and</strong> update implementation plansaccordingly. Convene periodic meetings of development partners to coordinate <strong>and</strong> managework, identify impediments, prioritise solutions, <strong>and</strong> publicise successes.The task <strong>for</strong>ce is expected to report its activities on a regular basis through the press <strong>and</strong>through regular reports to Cabinet to ensure ongoing support <strong>and</strong> cooperation.Key Per<strong>for</strong>mance IndicatorsEffective monitoring of the strategy requires regular monitoring of indicators, includingthe following:Value <strong>and</strong> volume of imports <strong>and</strong> exports;Volume of imported <strong>and</strong> domestic produce used in domestic markets, includingtourism;Farm gate <strong>and</strong> market prices;Accessibility of market in<strong>for</strong>mation by stakeholders;Quality of market in<strong>for</strong>mation available to stakeholders;


Registration of participants in national <strong>and</strong> international trade fairs;New investment in the value chain <strong>and</strong> re-investment of profits;Access to external sources of revenue available through finance <strong>and</strong> micro-financeinstitutions;Use of insurance policies along the value chain;Br<strong>and</strong>ing of the <strong>Fiji</strong> product <strong>for</strong> export;Range of processed <strong>and</strong> value-added products.Potential Development ScenariosOptimistic ScenarioIf the strategy is 100% implemented, there should be the following impact on the sector:1. Overall productivity <strong>and</strong> turnover of the sector will be enhanced giving rise to highernational economic growth <strong>and</strong> increased employment generation.2. The development <strong>and</strong> installation of agri-business marketing centres <strong>for</strong> collection<strong>and</strong> grading of crops <strong>for</strong> processing, or selling <strong>and</strong> distribution <strong>and</strong> ensured quality<strong>and</strong> quality consistency of production.3. An efficient mechanism <strong>for</strong> the collection <strong>and</strong> dissemination of in<strong>for</strong>mation.4. Measures will be taken to implement technology up-grading, development,technology transfer & dissemination <strong>and</strong> R&D.5. Upgrading of facilities <strong>and</strong> resources, together with training, will provide <strong>for</strong> betterresearch opportunities in agriculture. Production facilities such as testing <strong>and</strong> controllaboratory will be established in order to be competitive in the international market.6. Extension services will be better suited to the needs of the market <strong>and</strong> be able toaccurately disseminate appropriate best farming methods to producers.7. New entrepreneurs will emerge <strong>and</strong> be encouraged to enter into the sector, <strong>and</strong>existing businesses will continue to exp<strong>and</strong> <strong>and</strong> develop.8. Grading st<strong>and</strong>ards <strong>and</strong> quality controls will be used more widely to productmarketing.9. Continuous training to upgrade human resources, both in the public <strong>and</strong> privatesector.10. Increased access to finance will allow enterprise capacity building, sector investment,<strong>and</strong> reduced reliance on Government resources.11. Banking costs will be reduced <strong>and</strong> mechanisms will be improved to provide financeto the sector at lower rates.12. Entrepreneurs will have better access to export financing <strong>and</strong> internationalagricultural expositions <strong>and</strong> trade fairs.


13. Implementation of strategic marketing measures will be facilitated using advancedmarketing techniques both <strong>for</strong> domestic <strong>and</strong> international markets. To establishdisplay centres <strong>and</strong> proliferate international trade & export <strong>and</strong> to search <strong>for</strong> newmarkets.14. Venture capital mechanisms will be encouraged <strong>and</strong> promoted allowing <strong>for</strong>eigninvestment to be attracted to sector opportunities.15. Farmers on leased l<strong>and</strong> will have better security on their investments.16. Young farmers will have access to l<strong>and</strong>.17. Teaching syllabi will be revised across all levels of education – from primary totertiary – <strong>and</strong> business models included to change mindsets <strong>for</strong> agriculture being acommercial enterprise.18. Access to farm inputs will be increased <strong>and</strong> better suited to the requirements of themarket.Alternative ScenariosIf the installation of agri-business service centres is not accompanied by other activities<strong>and</strong> key objectives, only a sub-optimal scenario is possible.1. The agri-business service centre will not operate at optimal efficiency <strong>and</strong> may workin parallel with other sector activities rather than in cooperation.2. There will continue to be a supply-dem<strong>and</strong> mismatch.3. The task <strong>for</strong>ce will not be aware of current developments in the sector <strong>and</strong> thoseinvolved in sector activities will continue to operate with little cohesion or nationalplanning.4. In<strong>for</strong>mation will not be adequately disseminated along the value chain, reducingefficiency, planning, cooperation <strong>and</strong> trust between agents.5. Produce will not be sufficiently graded <strong>and</strong> quality controls not en<strong>for</strong>ced, such thatthere is no efficient structure <strong>for</strong> marketing.6. Problems in access to l<strong>and</strong> will continue to deter investment in the sector.7. Access to finance will remain difficult, <strong>for</strong>cing the Government to maintain its currentpolicy of h<strong>and</strong>-outs rather than acting as a service provider, as well as limitinginvestment.8. Research <strong>and</strong> Extension services will not best reflect market dem<strong>and</strong>s nor be able tobest advise the sector.If the strategy is not implemented at all, agriculture will continue to operate in an ad hocmanner with little planning. It will remain unable to reach its full market potential. With


little sustained growth, the sector will face increasing difficulties in remainingcompetitive in both its domestic <strong>and</strong> export markets.


Implementation Plan


Annex 1: Lead CoordinatorsObjectives 1:Establish a service system <strong>for</strong> collection, grading <strong>and</strong> distribution to ensure volumes <strong>and</strong>quality consistency.Sub-ObjectiveLeadPersonAssistingSupportPlanning <strong>and</strong> coordinationRichardBeyerMalcolmBossleyConduct a feasibility study Sam Foi LuisChang,MahensExportsSecure resources <strong>for</strong> funding operationsRichard Mere ToraBeyerEstablishment of a pilot centre Sam Foi Diven,MahensExportsTraining <strong>for</strong> farmers on Good Agronomic PracticesLuis SPCOrganisation of FarmersChangTTM LuisChangSPCSidney,SAOGovindRajuObjectives 2:Provide targeted market research in<strong>for</strong>mation that will enable the sector to better compete<strong>and</strong> operate.Sub-ObjectiveLeadPersonAssistingSupportDetermine Market Dem<strong>and</strong>Mahens AgTradeExportsAssess Supply Side Capacity Diven KalistoBiaukulaAnalysis <strong>and</strong> Distribution of In<strong>for</strong>mationRichard Sai NabouBeyerExport PromotionFrancesTavaiqiaSam Foi


Objective 3:Improve access to finance to enable sector operations.Sub-ObjectiveLeadPersonNeeds AssessmentTillmanBruettSmall-holder FinanceSavenacaNacanaitabaSME FinanceFrancesTavaiqiaExport Finance Trade &CommerceRisk ManagementDineshKumarAssistingSupportDineshKumarVishwaReddySavenacaNacanaitabaGraemeThorpeGraemeThorpeObjective 4:Align policy <strong>for</strong>mulation to sector needs.Sub-ObjectivePromotion of AgricultureAccess to Agricultural L<strong>and</strong>Capacity Building on Policy Makers And Public PrivateDialogueLeadPersonRichardBeyerMereTora,RichardBeyerAssistingSupportMereTora, JudyHarmSukaRichardBeyer,JudyHarmSuka,AkiniQauqauMereTora, JudyHarmSukaObjective 5:


Provision of adapted technical support based on market needs.Sub-ObjectiveProvision of Planting Material <strong>and</strong> Research <strong>and</strong>DevelopmentRein<strong>for</strong>ce Extension ServicesLeadPersonLuisChangRichardBeyerAssistingSupportDiven,ShalendraPrasad,SPCSidneySumaDiven

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