Fiji - Agricultural SectorFiji - Agricultural Sector
The agriculture sector contributes around seven percent of GDP. Sugar remains a significant industry, employing an estimated 200,000. While sugar exports account for 18 percent of Fiji’s domestic exports, non-sugar exports account for approximately 3.8 percent. Major non-sugar agricultural exports include fruit (pawpaw) and vegetables including root crops. While most fruit and vegetables are sold fresh, there are a few establishments engaged in processing local fruits and vegetables, mainly for the domestic market, and in producing fruit juice concentrates (pineapple, orange, guava, mango, passion fruit, and other citrus fruit juices). A small volume of certified organic products, including coconut and fruit products and nutraceuticals, is exported.
The government’s “Fiji 2020 Agriculture Sector Policy Agenda” aims to drive transformation of the sector to commercial scale agriculture. To encourage investment in agriculture and agro-processing, the government’s tax incentives include a tax exemption for any new businesses established before December 31, 2018. The length of the tax holiday is dependent on the level of capital investment. For investments of approximately USD$0.9 million (F$2 million) or more, companies are eligible for a 13 year tax holiday. Small and micro-enterprises with a maximum turnover threshold of approximately USD $235,000 (F$500,000) in selected sectors are also tax exempted. The importation of all agricultural items for commercial agriculture and agro-processing establishments is subject to zero duty. The government subsidizes the cost of fertilizer, feed, and chemicals through a fertilizer subsidy for non-sugar farmers, including ginger farmers, and farmers in the dairy and livestock sector.
Potential commodities in the agro-processing sector for value-added and niche-market processing include fresh fruits such as papaya, tomatoes, pineapple, coconut, duruka (Saccharum edule), guava, and mango; vegetables; and herbal kava products. Potential also exists for snack food processing of readily-available taro, tapioca, breadfruit, and banana. As fruits and vegetables are seasonal crops, processing facilities will need to have flexibility to allow the processing of multiple items to utilize the same plant throughout the year.
Investment, equipment, and supplies needed to expand and support these industries are in demand. The sector also faces a number of challenges including natural disasters, inadequate infrastructure, and high transportation and input costs.
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Fiji Agribusiness Trade Development and Promotion