Let's find those alternatives

The Fiji Times

News- Let's find those alternatives

May 15 2007

Fiji will soon lose the preferential sugar price that it has enjoyed with the EU since 1974.
Sugar revenue, already in decline, will be further reduced causing loss of livelihood, displacement of large numbers in the farming community, and exacerbating socio-economic problems associated with such phenomena.

Therefore, economic recovery in the agriculture sector must be the topmost priority for any government, interim or elected.
Presently, the interim Government is reorganising the sugar industry to reduce the cost of production and introducing new varieties of cane with high sugar content.
But this is not enough: We need to explore other options and diversify into commercial farming for revenue generation and income generation in order to avoid urban exodus with its associated social fallout and erosive impacts on urban infrastructure.
Commercial agriculture for tourist and niche markets.
There is an urgent need to seriously explore the viability of commercial farming for the tourist industry in order to reduce the import bill and to provide alternative income in farming communities.
The time is right for generating organic farms for niche markets for our hotels as well as for export, given the recent upsurge of demand for chemical-free foods in first world countries.
Government needs to conduct research immediately to determine the demands and needs of the tourist industry in terms of fruit and vegetables.

This must include research and planning for transportation.

Further, this will entail the creation of small and medium industry (SMEs) in/near the farming areas to process and freeze the produce for the local tourist markets as well as for export.
Government will need to identify areas that are suitable for large scale farming, and organise a system for co-operatives in order to enable production in sufficient quantities.
Farms of about 1000 acres each, perhaps in three or four areas (say, in the North, West and Central divisions) would be ideal pilot projects.
For commercial farming to be viable the first priority is the security of land tenure.
The interim or any future government will need to work out a long-term lease facility that will offer security and encourage sugar cane and/or commercial agriculture farming for the tourist industry and exports.
In the recent past, India has been a success story of commercial farming via the Indian Tobacco Company (ITC) and multi-nationals like Pepsi.
The ITC, as the investor, undertakes the required logistics for the commercial farming venture: It identifies the produce suitable for regions and supplies all seeds, fertilisers, insecticides etc.
ITC's success in this venture is based on a scientific approach it has access to specific weather data through the Indian weather satellite to help determine the timing of planting, spraying, harvest, etc.
Many processed vegetables from India are now available in Europe, the United States of America, Australia and New Zealand thanks to ITC.
Similarly, Pepsi (the multinational giant) has joined in and is getting farmers in Punjab to plant potatoes for its local and overseas markets.
There is no reason why Fiji cannot gain a good share of such a market. Now, how do we attract these companies to Fiji?
Government will need to organise a very attractive investment package similar to that of the hotel industry and this should be valid for at least 10 years.
It is suggested this industry be given an 80 per cent return on investment through tax rebates annually.
This incentive will undoubtedly attract overseas investors as well as encourage local businesses to explore opportunities for commercial vegetable farming.
The local tobacco company might wish to emulate ITC, in view of the decline in the demand for tobacco, and utilise its set up and resources for alternative products.
Under Indian Government aid, two agricultural scientists with experience in commercial vegetable farming and the food preservation industry were posted in Fiji.

Fiji could request such aid and use their expertise for commercial farming.
I have been reliably informed that an Indian weather satellite passes over Fiji every three weeks.
Perhaps the Government should explore avenues to access this satellite for weather information for the suggested commercial vegetable projects.
India has openly stated it is willing to help Fiji.
We could absorb our Fiji College of Agriculture graduates into commercial vegetable farming through offering micro economic grants for such SMEs.
Fiji is eligible to access economic aid for such projects from the EU Economic Partnership Agreement under the key areas of EPA Development Needs and Adjustments Costs for Pacific ACP States'.
Funding can be sourced under private sector agro-processing and commercial organic agriculture for niche markets.
Tourism
It is common knowledge that tourism has overtaken sugar as the main income generator in a number of counties such as Mauritius.
Therefore, we need to explore avenues to diversify our tourism industry.
Medical tourism was the brain child of Finance Minister Mahendra Chaudhry in 2000 and was later followed up by Prime Minister Qarase, but nothing concrete has been achieved.
This latest trend in medicine is a lucrative venture and one that Fiji must not fail to take advantage of at any cost.
We need to identify accessible locations for this type of tourism, ensure that there is good infrastructure, hotel room facilities and resort-type facilities for carers of patients.
Government will need to devise an attractive economic package for such investment, and perhaps the Finance Minister would like to pursue this option once again.

Eco-tourism took off with a big bang at one stage but then the momentum was lost.
Eco-tourism attracts a special type of tourist and their numbers are growing every day.
An important aspect of this type of tourism is the requisite provision of infrastructure government will need to ensure that infrastructure to such areas is adequate otherwise such sites will become white elephants.
Abaca, for example has not been able to realise its full potential as a tourist destination because of a lack of infrastructure.
In this endeavour, too, the Government can access the EU-EPA aid for tourism development.
Fiji's marine resources in the Yasawas, Toberua, are potential revenue earners in eco-tourism.
The Abaca and marine reserve sanctuaries should be developed as joint ventures with the resources owners to whom low interest rate funding from FDB can be made available.
Eco-tourism development will blend well with the initiative in organic farming.
Fuel alternatives
Fiji's demand for fuel is very high and the cost is killing foreign exchange reserves.
The Government needs to stop paying lip service to the concept of alternative fuel sources.
It needs to conduct a study to determine:
The possibility of ethanol production; the cost of converting motor vehicles to use ethanol, and to compare the costs and long term benefits of ethanol use for the economy.
This should now form an integral part of the restructure of the sugar industry, together with co-generation of electricity from bagasse. Such an inclusive vision will give the sugar industry renewed life and enhanced economic value.
It will be worthwhile to study proposals for alternative energy generation projects (some that have been submitted to FEA) and have independent assessment of their applicability and benefits.
Information technology
The IT industry is huge in India. Many Australian and New Zealand companies are outsourcing from big Indian IT companies.
However, there are small and medium-sized companies that would be interested in coming to Fiji.
Fiji has resources such as high literacy, English speaking workforce, good infrastructure and telecommunications facilities, and ease of access to Australia and New Zealand.
If we are able to provide attractive tax packages to these SMEs, they will be lured to Fiji and we will benefit in terms of market and employment.
Suggestions/action required
In order for Fiji to achieve any economic growth, it is imperative that we are able to offer security of land tenure as well as security to life and produce.
Some areas that need attention are: NLTB can play a vital role in facilitating economic advancement for land owners, especially in view of recent criticism of its performance;
NLTB should emerge beyond the race factor and educate landowners/mataqali on options for land utilisation.
Once productive sugar cane lands now lying unused does not benefit the indigenous community or the nation.
It is more visionary to examine avenues for tie-ups and profit sharing for the benefit of investors as well as landowners in commercial vegetable farming; the personal involvement of landowners will guarantee the security necessary for investment and profit.
It will provide an alternative o the unfortunate recent trend of marijuana growing for subsistence;
NLTB must put an immediate stop to the leasing of reserved sugar cane farmlands for residential squatter settlement. These give short-term benefit to landowners, but commercial farming is a more sound alternative for both landowners and farmers;
NLTB must classify agriculturally viable land for long-term lease and develop conditions for renewals linked to the economy of Fiji.
In the future, there will be more indigenous Fijian farmers than Fiji-Indians.
This should be the determining factor for all procedures that are drawn up; the race factor should not be used to determine lease terms and/or renewal of leases.
Diversification of existing tourism resources England has laid the red carpet for tourists from India, and Australia and New Zealand are following suit.
Fiji needs to draw these tourist to our shores.
It would be worthwhile to do a package of concessions for hosting film festivals and Bollywood Awards in Fiji.

With its reputation as an exotic location, its beauty and good infrastructure, Fiji can explore these opportunities and benefit from the publicity. bnefits to economy Commercial vegetables farming will mean utilisation of land lying vacant, import substitution leading to savings in foreign exchange, and foreign exchange earnings form export of vegetables and fruit; generating employment and creating farms into small commercial ventures for our people and resource owners; diversification of the economy through organic farming and medical tourism will open up more land areas and earning opportunities for indigenous resource owners. Creation of new industries like food processing and freezing, ethanol production; saving foreign exchange and reducing fossil fuel consumption; expanding IT industry for employment generation and foreign exchange.

The views expressed are the writer's and not those of the Fiji Chamber of Commerce, of which he is acting president, or of the Consumer Council of Fiji, of which he is chairman.

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