Page 12 - IB Mar 2020

Agriculture Agriculture

Bronwyn Wiseman and Tanuvasa Semy Siakimotu of PHAMA Plus. Photo: Samantha Sun-dried cocoa beans are the preferred choice for premium chocolate makers.
Magick Photo: Samantha Rina/PHAMA

SPECIALISING FOR SUCCESS

NICHE MARKETS CRITICAL FOR PACIFIC AG EXPORTERS

By Samantha Magick maintain and access new export markets, adapt quality and
productivity-enhancing innovations for their export products,
The need for Pacific island agricultural exporters to target and support the Pacific’s biosecurity authorities to perform
niche markets has long been accepted wisdom. A report their market access facilitation functions better.
produced by the Pacific Horticultural and Agricultural Market The challenges facing Pacific exporters have remained
Access (PHAMA Plus) program late last year shows in figures, largely unchanged for years, although in some instances, they
exactly why it’s so critical. have intensified.
The Pacific Export Context Analysis looks at cocoa, coffee, PHAMA Plus Biosecurity and Environmental Safeguard
coconut products and palm oil price fluctuations since 2009 Advisor, Tanuvasa Semy Siakimotu says these challenges
and notes that in real terms, the USD prices of the major include the cost, accessibility and reliability of transportation,
export commodities show an uptrend over the last 20 years. sustainability of supply, market awareness, branding,
However prices have often strengthened during the first half certification, verification of legal origin, issues of land tenure
of that period and softened in the second half. and land disputes, and the ongoing impacts of climate
“When it’s a global commodity; cocoa, coffee, sugar it change.
can’t just be put into basically a bulk bin,” says Bronwyn PHAMA’s export report suggest modernising ports, upgrading
Wiseman, Biosecurity and Trade Development Adviser at logistics systems, simplifying customs procedures and
PHAMA Plus. She says in the scheme of things, PNG and introducing automated clearances to reduce trade costs,
Solomon Islands are “tiny cocoa and coffee producers, saying the recent upgrading of the Lapetasi Wharf in Port Vila,
they’ve generally gone into the bulk market, so they’re Vanuatu is an example of this in practice, where the costs
totally controlled by global prices.” of moving a TEU (twenty-foot equivalent unit or standard
Hence the need for niche markets. Wiseman says niches can shipping container) has decreased by around 15%.
be defined in a variety of ways, including product quality and Siakimotu says they’re working with farmers to understand
marketing. and harness traditional practices that would allow farmers to
“It could be that it’s a specific market, it could be bean- build resilience of the ecosystem to adapt to the changes in
to-bar chocolate makers. They actually do need a quality the climate.
product, and I guess the level of finesse of the product is “The lack of workers and increasing cost of workers is
quite high, but they also want the story, they need both. another challenge,” he says, “And that’s because we have
“For programs like us, you need to resolve all the issues, other competing industries or opportunities like the seasonal
say for cocoa, why its smoky, why it hasn’t been processed workers scheme. That’s not a bad thing but it’s got to be
properly, it’s got mould flavours into it, you don’t have a thought out well so they can complement each other. You
traceability system.” have these workers go overseas, they come back with this
Funded by Australia and New Zealand, PHAMA Plus skill, they could be involved in agriculture but because
works with agricultural producers and exporters to use, they’ve come back with an expectation that 'I was able to

12 Islands Business ,March 2020