This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 3/20/2019

Overview

The agriculture sector remains important to Fiji’s economy for income generation and food security.  Accounting for 9.5 percent of Fiji’s GDP, the sector supports the livelihoods of 49 percent of Fiji’s population that reside in rural areas.  Despite the loss of European Union sugar preferences in 2017 and decline in the sugar industry, sugar is the third largest export commodity earning an estimated FJD $194.9 million (USD $92.3 million), accounting for 9.5 percent of total export earnings in 2017.  The non-sugar subsector’s performance improved through the support of foreign donor partners, as well as the growth of the domestic market and the tourism sector.  Major non-sugar agricultural exports include kava, fruit (papaya, pineapple, and mango) and vegetables including root crops (dalo, cassava, yams).  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, and to raise non-sugar exports by FJD $100 million (USD $47.3 million) in 2020.  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 FJD $2 million (USD$0.9 million) or more, companies are eligible for a 13 year tax holiday.  Small and micro-enterprises with a maximum turnover threshold of approximately FJD $500,000 (USD $237,000) 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.

Table 2: Fiji Agricultural Exports
 
 2014201520162017 (Estimated)
Total Exports ($Millions)    
SugarFJD $201.4 (USD $95.4)FJD $129.4 (USD $61.3)FJD $103.1 (USD $48.8)FJD $194.9 (USD $92.3)
Fruit & VegetablesFJD $39.1 (USD $18.5)FJD $36.4 (USD $17.2)F$36.5 (USD $17.3)F$45.6 (USD $21.6)
Kava/YaqonaFJD $7.5 (USD $3.6)FJD$8.8 (USD $4.2)FJD $14.2 (USD $6.7)FJD $19.6 (USD $9.3)
Exchange RatesUSD 1 = FJD 2.11199

Leading Sub-Sectors

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.

Web Resources

Investment Fiji
Ministry of Agriculture 


 

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Fiji Agribusiness Trade Development and Promotion