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SAPA Publication: 2001/1

Report of the FAO Sub-Regional Workshop on Small Farmer Participation in Export and Market Production:

- Policy options for supporting market-oriented production and diversification -

Apia, Samoa, 14 to 15 February 2001

Sub-Regional Office for the Pacific Islands Food and Agriculture Organization of the United Nations

Apia, Samoa

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The designation and the presentation of the material in this report do not imply the impression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The opinion expressed in this report are those of the authors alone and do not imply any opinion whatsoever on the part of the FAO.

FOR COPIES WRITE TO: FAO Sub-Regional Office for the Pacific Islands Private Mail Bag Apia, SAMOA E-mail: [email protected]

FAO Sub-Regional Workshop on Small Farmer Participation in Export and Market Production Apia, 14 and 15 February, 2001

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Table of Contents

Page No.

i. Table of Contents i

ii. Summary of Workshop Recommendations ii

I. Background of the Workshop 1

II. Venue and Participants 1

III. Official Opening Session 2

IV. Key Presentation: Regional Overview Paper 2

V. Summaries of Country Case Studies and Reflection on Overview Paper

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VI. Working Group and Plenary Discussion on Critical Issues to be Addressed for Improved Small Farmer Participation in Export and Market Production

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VIII Closing of the Workshop 16

ANNEXES

Annex 1: Workshop Programme 20

Annex 2: List of Participants 21

Annex 3: Group Photograph 22


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SUMMARY OF WORKSHOP RECOMMENDATION Workshop Statement: The meeting reasserts the importance of the smallholder sub-sector to the economic and social well being of the island countries in the Pacific and request both, Government and development partners to reflect this in their development programs. 1. Government Roles

1.1 Credit • To improve access to credit for small farmers in order to facilitate

diversification of farming systems and establish appropriate credit systems (revolving funds, repayment procedures).

• To create and support enabling environment for informal credit schemes (grameen bank type)

• To finance young graduates/trainees to take up commercial farming. 1.2 Policy Development • To ensure that all actors involved in agriculture are consulted , e.g. through

participatory stakeholder consultations, follow farming systems development thinking (farmer, extension, research and planner interaction and linkages).

• To reflect the high importance of smallholder sub-sector to the economic and social well being of a country/the national economy in Government policy.

• To promote and lobby for continues support to small farmer sub-sector among development partners (donors as well as regional and international organisations).

1.3 Market Research • To facilitate identification of markets and provide technical support on value

added products. Particularly required for small business operators in identifying appropriate food processing ventures and to provide the necessary technical information for success, including research on quarantine and food safety related issues (CODEX).

1.4 Support Services for Small Farmers • Research, Extension, Training, and Information • To provide practical training in both production (e.g. with farmer groups in

farmer field school types) • To train and educate farmers on market, marketing and farm business issues. • To focus on education of young farmers in farming and farm business on

various levels (schools, colleges, and at village/farm level) • To identify successful small farmers and use them as role models for training

purposes.

1.5 Provide and Maintain Appropriate Infrastructure • E.g. road network, physical markets, shelters, wharves, etc.

NOTE: Government should have no direct role in the commercial production of crops!


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2. Role of the Private Sector

2.1 Production • To facilitate farmer to farmer extension approach; • To propagate successful enterprise options; • To assist Governments in education and motivation of young farmers , i.e.

identify and recruit young people with interest in progressing further in agriculture (farming);

• To promote successful enterprises in order to improve status of agriculture sector;

2.2 Market Oriented Enterprise Development (for export and domestic) • To provide necessary facilities to bring farmers together • To create means that exporters can educate farmers on various aspects of

professional marketing and farm business (i.e. from selection of planting material, via harvesting, handling, marketing, etc – in addition to Government)

2.3 Leading role in input supply

2.4 Seek advice and collaborate closely with Government

3. Role of Donor Agencies

3.1 Provide Sustainable Funding • Donor agencies to take into account local government and private sector

initiatives rather than pursue their own agenda • Simplification of project approval process. • Support improvement of Agriculture related Infrastructure (markets, roads,

transport, shelters, etc.) 3.2 Secure project Sustainability • More direct support to target group (small grant schemes, Telefood) • Provide funds to assist in training, education of small farmers • FAO to sensitive donor agencies on the plight of small farmer and the

importance on continues support to small farmer sector in the Pacific (because of: income, employment, food security, migration, etc.). Hidden strength of economy, high share of GDP

3.3 Technical Support • Support Government and private sector activities in extension and training


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I. Background of the Meeting Limited successes of agriculture diversification programmes in small island countries in the Caribbean and Pacific Sub-regions over the past years justified analytical studies to identify constraints and opportunities in order to identify policy options for supporting market-oriented production amongst small farmer type farming systems. Already in 1999, the Farm Management and Production Economics Service (AGSP) initiated these studies in the two FAO Sub-regions. In the Pacific, the work was co-ordinated by the Sub-regional Office for the Pacific Islands (SAPA) Under a contractual arrangement with FAO, the Institute of Research Extension and Training in Agriculture (IRETA) initiated country case studies on constraints and opportunities for export and market oriented production in five SAPA member countries, i.e. the Solomon Islands, Vanuatu, Fiji, Samoa, and Tonga. All of the five country case studies were conducted by national experts. The results were summarised in a synthesis paper by a FAO senior consultant. The case study reports cover a wide spectrum of topics related to diversification and marketing, including research and extension needs as well as implications on profitability at farm level. In the synthesis paper, emphasis was placed on the identification of policy options for support to market-oriented production. The summary report consequently provides a micro-level (“farm level”) perspective on policy and technological options impacting on farmers' enterprise choice and diversification. The major purpose of this two days workshop was to identify and discuss policy options and appropriate support services for SAPA member countries contributing to improved small farmer and private sector participation in export and market-oriented production. To achieve valuable results and make appropriate recommendations, the workshop deliberations focussed on issues such as:

• How to improve producer capacity to respond to market changes; • What are appropriate policy guidelines for institutional support to

diversification into export production, and • How do small farmers respond to market incentives for export oriented

production and corresponding support needs. The study and the outcome of the workshop will directly contribute to adjust AGSP’s and SAPA’s work in the Sub-region and lead eventually to policy and programme design guidelines for small farmer development in the Pacific. II. Venue and Participants The Workshop on “Improved Small Farmer Participation in Export and Market Production” was held at the FAO-SAPA Conference Room in Apia, Samoa on 14-15 February, 2001. It was attended by senior officers from the farm management and policy planning units of the Ministries of Agriculture from 8 island countries in the Pacific, namely Papua New Guinea, Solomon Islands, Vanuatu, Fiji, Samoa, Tonga, Niue and the Cook Islands. In addition, selected and resource person from Trade and Commerce, Central Planning Departments as well as the Private Sector were invited. A workshop facilitator and FAO staff were invited and they attended selected sessions. A complete list of participants is shown in Annex 1.


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III. Opening Session The opening of the workshop started with an prayer given by Father Tovio. The participants were welcomed to the workshop by the FAO Sub-Regional Representative and FAO Representative in Samoa, Mr. Vili Fuavao. Mr Fuavao reminded the body on the major global commitment of the FAO, which is food security, in its effort to fight hunger and malnutrition. He continued to reflect on the specific situation and commonalties of the agriculture sector of Pacific Island countries. The situation is characterised by increasing amounts of (less costly) imported food stuffs which compete at the domestic market with locally produced foods, an ageing farming community while at the same time the total population grows, and limited availability of suitable land. Hence, production constraints are not limited to physical, climatic and biological factors but as well include socio-economic and financial constraints. Any improvement to the small farmer sub-sector, and here especially the drive towards a market-oriented approach to farming, should be linked with a broader development strategy. Features of such a strategy are decentralisation, client driven and participatory; its systems perspective being both horizontal (multi-sectoral or multi-enterprise) and vertical (with linkages from the pre-production through production to post production, including marketing and processing); and has to be sustainable (environmentally friendly and institutionally and economically compatible and affordable within available resources). The components of such a strategy and the alternative options will require the revision of the traditional production-oriented system in favour of more demand driven market-led production systems. However, this can not always be done because of a perceived failure of government and institutions to create the right policy environment for the adoption of more productive and sustainable and market-oriented farming practices. The workshop deliberations, he added, would be the venue for a meeting of the minds of the Sub-Regions experts, so that the outcome would give future guidance to policy makers in the countries and to FAO as international organisation working in the Pacific Island region. With these words the SRR wished the participants a successful workshop and officially declared the workshop open. IV. Key Presentation: Regional Overview Paper The technical session of the workshop began with a presentation by Mr Andrew McGregor. Mr. McGregor was contracted by FAO SAPA to prepare a synthesis paper on “Small Farmer Participation in Export production in the Pacific Islands” based on five country case studies. Four of the country reports included a specific case study on niche market development. These were: Fiji (eggplant), Tonga (squash), Vanuatu (organic spices) and Solomon Islands (chillies). In his presentation Mr McGregor highlighted the high importance of the small farmer sub-sector for the economies of Pacific Island countries, described the factors and environments under which production takes place and outlined the competitive advantage of small farmer in export production found in the case studies. At the end of the presentation he raised the question on how to realise the much talked about potential of small farmers for export production and provided a framework to structure workshop discussions.


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The small holder farming systems of the PICs are complex and have proven to be robust and productive in the face of adversity. In varying degrees they have proven to be the hidden strength of these otherwise structurally weak economies. Small farmers provide the production base of agricultural exports in all PICs. Small farmers provide the production base of agricultural exports in all PICs. With regard to the policy approach it was found that all the PICs have as a policy priority the expansion and diversification of agricultural exports. After independence governments took a very active role in trying to implement this policy objective. As a consequence “government-led” agricultural development projects to promote agricultural exports featured prominently in development plans. An issue of concern arising from this historical trend would be the unfortunate repetition of past mistakes, often a result of a weak institutional memory as the Fiji case study illustrates.

It was stated that by and large the “government-led” approach has not been successful. Some of the reasons for failure include:

• The targets of the planners were set unrealistically high. • Poor project planning and implementation. • Aid driven projects beyond the absorptive capacity and sustainability of

government extension and support services. • The assumption that semi-subsistence farmers could acquire the attitude of

commercial farmers during the project. • Failure to identify the needs of project beneficiaries • Failure to take account of marketing requirements for new crop development

Major emphasis was given to the institutional environment because this was something that could influence in varying degrees: • Land tenure and access to land is one of the most controversial and intractable

problems facing the commercialisation of small farmer agriculture. Customary land tenure in the Pacific Islands represents a major departure from the situation described for the Caribbean.

• Access to working capital has proven to be a major constraint to small farmer diversification into high value export crops.

• Agricultural research that is conducted lacks focus and has tended to be out of touch with the requirements of export industries.

• Most of the PICs operated large widely dispersed agricultural extension services operated by government. These services have become less and less effective. In the past there has been substantial government involvement in export marketing – this is far less true today. These interventions proved detrimental to the commercial development of small-holder agriculture. Recent years have seen a dramatic shift in the attitude of the aid donors and multinational agencies away from supporting government involvement in agricultural marketing.

• With regard to farm management practices and farm data, it was stated that small farmer food production is the single most important activity in PIC economies. Yet very little data is available on the cost of production and the returns to this activity, particularly when it is a part of traditional cropping system. A problem in applying conventional farm management methodology to this sector is the return to effort is the key concern to the farm household. Furthermore there are likely to be few, if any, purchased inputs used. The Vanuatu country study


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did, however, concentrate on the returns to effort in the models that were developed for small farmers that were largely self-sufficiency producers.

• The heavy involvement of central governments in extension and marketing has stifled the development of effective farmer organisations. However, recent years have seen some encouraging developments.

• Quarantine constraints, particularly related to fruit flies, continue to pose a major constraint to realising horticultural export potential from the PICs. Unless these fruit flies are understood and managed effectively, prospects of developing horticultural exports, for which there are market opportunities, is virtually non-existent. Fiji has made by far the greatest progress in overcoming these constraints. Importing countries are making it increasing more difficult for PIC’s to overcome quarantine barriers to market access.

• The outer-islands of Fiji, Solomon Islands, Vanuatu, and Tonga are now locked in vicious cycle of decreasing trade, depopulation, and reduced shipping viability. Under these circumstances the use of subsidies on inter-island shipping is seen an appropriate policy option.

The questions raised was where does the competitive advantage of small farmers in export lie? In summary, the overview report identified the following: • The countries of western Melanesia have a comparative advantage in traditional

tree crop production. Thus for small farmers in these countries there is not a pressing need for diversification into other export crops. This is indeed fortunate for no crop is identified that could replace these traditional tree crop industries on any scale. For these countries the focus of diversification should be on adding value to the existing industry rather than on replacement crops. In contrast the Fiji copra industry is a highly inefficient generator of foreign exchange.

• The PICs outside western Melanesia were found not to have a comparative in traditional tree crop production. For these countries the need for diversification is the greatest, and fortunately so are the opportunities.

• The market potential for horticultural crops has been identified to be much more favourable than that for traditional bulk tree crop commodities. However, at first glance the Pacific islands would seem to be an unlikely source for horticultural products given the size and isolation of these suppliers. Yet these markets are interested in the products of a small producer when there is something special on offer - be it, absence of a particular pest or disease, a seasonal window, premium quality, or a perceived contribution to good health and environmental sustainability. Certain high value horticultural products, from particular PICs, are in demand because they offer one or more of these special characteristics to international markets. .

• The promotion of non-commodity export agriculture has become the focus of agricultural policy and aid donors. However, overall success has been limited and biased toward Fiji and to some extent Tonga. The Vanuatu country study illustrates the constraints involved in fresh produce exports. From time to time very small quantities of root crops and other produce have been exported to New Zealand. However, exports have not been viable on any significant scale due to a combination of high producer prices, transportation linkages and costs, and quarantine constraints. Most traditional root crop producers have been content to earn high prices for small levels of production requiring low labour input. This does not provide a basis for developing export markets. Most other PICs face the same constraints in varying degrees.


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• New Zealand still remains the only significant export market for Pacific Island produce exports – the only significant exceptions are Tongan squash exports to Japan and Fiji ginger exports to North America. Fiji’s overwhelms the PICs share of the New Zealand market, accounting for almost 90% of PIC produce imports. New Zealand has proven to be an important market for some of Fiji farmers and worthwhile market for some farmers from the Cook Islands, Samoa, Tonga, and New Caledonia. However, New Zealand with a population of only 3.6million people (of which approximately 10% are Pacific Islanders and Asians) is a limited market.

• PIC produce exports to Australian markets are negligible and less than they were a decade ago, when Fiji shipped papaya and mangoes. Australia is yet to approve HTFA treatment for PIC produce and does not accept the New Zealand methodology that allows for the importation of non-fruit fly host produce.

One of the objectives of this workshop would be to discuss and suggest appropriate and realistic ways on how to realise the outlined potential in small farmer participation in export production. It was suggested to focus in discussions on the role of the various actors involved in stimulating small farmer participation, thus:

• The role of government • The role of the private sector • The role of the donors and the international agencies

V. Summaries of Country Case Studies and Country Reflection on

Overview Papers Country case studies were conducted by national teams in five SAPA member countries: Tonga, Samoa, Fiji, Vanuatu and the Solomon Islands. Based on questions documented in a questionnaire fifty small farmers were interviewed in each country and the comparative advantage of traditional (domestic) market crops and newly introduced “exotic” market crops was evaluated. The outcome was supposed to give indications on the direction and requirements to support services to stimulate desirable diversification into new market and export crops. In the following, a short summary on these five case studies is given. In addition, the countries comments on the overview paper are summarised. In the short workshop statements, the country representatives were asked to indicate most important policy adjustments in support of small farmer participation in export and market production and to indicate the specific role of Governments and government agencies as well as private sector institutions. Since also representatives from SAPA member countries in which no case study was conducted attended the workshop, their response to the overview paper is also stated. (a) Tonga The Tonga country case study focussed on a comparative analysis of the “new” cash crop squash versus traditional root crops. It concludes that traditional crops such as taro, yams, cassava as well as kava will continue to offer more sustainable cash incomes to farmers than newly introduced “export crops” such as e.g. squash, vanilla and watermelon. This will be from both, sales to export market as well as sales at local markets. The reason behind this statement is that “players” involved in the production and export of the “new crops” do not integrate well; e.g. marketing margins are not transparent to farmers and their height cause frustration amongst growers. Furthermore, price fluctuations to e.g. due overproduction have caused


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frustration amongst farmers and put placed severe risks to farmers existence; that the high costs of inputs and difficulty in accessing loans prevent farmer from easy access, the quality deterioration during the transport of the produce to overseas markets, and last but not least the high demand of new crops on land preparation. The authors finish in saying that roles of extension officers, protocol officers, exporters, input suppliers and quarantine people must be clarified and more training is required in the future in order to achieve high standards and quality assurance all along the marketing chain. In their country statement, participants from Tonga (as well as all of the other country representatives) acknowledged the quality of the overview paper. Some additions with view to update of in-country data presented were made. It was highlighted that the agriculture sector contributes substantially to the Tongan economy, i.e. 28 to 35% of GDP at constant prices, it contributed to 70% of average total exports over the last 10 years and plays a substantial role in providing employment (40% of total employment). The small farmer sub-sector is still the main mode of agricultural production in Tonga, with 6665 tax allotments (3.3ha of farm land for each Tongan citizen above 18 years of age) surveyed, 88 % were farmed by a single farmer and only 12 % by multiple operators. The survey also showed that 75% of the farmers in Tonga farmed less than one hectare of crops and 19 percent farmed between one to 2.5 hectares (MAF, 1994). Major trends in terms of chances in production over the last five years can be summarised as drastic reduction in vanilla exports, increases in Nonu exports in 1999, high national expenditures on imports of livestock produce, still lucrative markets for increased kava production. The major problem Tonga faces in terms of stimulating production among farmers are the rigid land tenure system with an increased number of people without land (40 to 50%) or farmer working on borrowed land. Nevertheless the country representatives highlighted successes where a number of private growers and exporters managed to secure overseas markets. This is the main mandate of Tonga Trade and Tonga Trades capacity needs to be strengthened in assisting the private sector in this endeavour. MAF is seen as a major player in implementing and negotiating quarantine and quality protocols. Assistance to exporters by providing credit facilities is the main role of the Tongan Development Bank. The country team outline the different roles in stimulating small farmer participation in export and market production as follows: Role of the Government: Governments play the leading role in the policy process. In Tonga, MAF, CPD, MLCI agencies have the role of developing agricultural policies. MAF is responsible for research and extension, export quality control support services. The outputs of soils, crops, livestock and forestry research are inputs to policy formulation. However, there is much room for improvement in the documentation and storage of research results for easy retrieval when required for formulation, monitoring and evaluation. Agricultural extension services provide field-gathered information for use in formulation and are often involved in the collection of information for monitoring and evaluation purposes. Continuing effort is therefore needed to strengthen the basic support services for Tonga’s agriculture; particularly crucial is technical and advisory assistance, through an effective extension service, agricultural research, and improved marketing facilities.


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Role of Private Sector: Private sector, particularly exporters of agricultural produce, suppliers of agricultural inputs and financial institutions, play an important role in agricultural development. In Tonga private sector is responsible to marketing and input supply – private sector domination have often been a constraint to, rather than an enhancing factor for, economic development. Various special interest groups, including specialised agricultural commodity groups, youth groups, church groups, district agricultural committees (DAC), women in development groups etc. have also been involved at the formulation and monitoring stages. Key Issues to address and to consider while adjusting policies and support services: • Target group - “Smallholder or small farmer – the main decision maker”.-

entrepreneurial and management skills (training’s, study visits, extension, etc). commercial mentality, be “profit maximisers”.

• Semi-subsistence, or semi-commercialised, nature of Tongan smallholders is

characterised by being motivated primarily by many objectives that contribute to maximising family satisfaction.

• Increasing commercialisation requires modification of farmers’ objectives towards

greater priority on profit maximisation. It also requires improvement in the ability of semi-subsistence farmers to be able to manage the uncertainties and risks that come with increasing commercialisation.

(b) Samoa The country case study states that small farmers in Samoa have not participated effectively in the export production since the Taro Leaf Blight in 1993-94. However, from past experiences, in particular the Passion fruit and Taro industry, small farmers have responded well to good market structures with good market prices. Evidence suggests that good market information plays an important role in generating responses from small farmers to participate in export production. It is also found that small farmers are less responsive to price fluctuations for traditional crops such as coconut. This is because coconut derived commodities (70 percent, 28 percent for home consumption and 2percent for sale) are used in the daily activities and consumption of the Samoan community. The general nature of semi-subsistence farming where excess production is sold after consumption was highlighted. A characteristic of producing commodities for export is that rejects can be consumed is a common trend for small farmers to secure risk of producing commodities that can be disposed of. The authors found that small farmers are moving towards a more cash oriented production. Their intentions are to obtain cash, whether this is from export or from the domestic markets, does not matter much to them. Cash is needed for electricity bills, water rates, school fees, bus fares, and so forth. Electricity now reaches 99% of all dwellings in Samoa and most families now rely on electricity as an everyday necessity, equal to water. Important lessons learned from past experience in Samoa identified include, i.e.: • Farmers are able to adjust to market structures available whether it may be

traditional staples for the domestic markets in urban areas or less perishable semi-processed products, mostly for export, available for rural areas distant from


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domestic markets. It is important to note the important part played by the private sector in facilitating the latter market facilities.

• Mixed farming (including inter-cropping and livestock) is an important characteristic of the culture and the Samoan Farming Systems practised in a typical small farmer household. However, with more modern facilities available even in rural areas imported food stuffs replaces some traditional food commodities. It is therefore important to increase productivity and reduce cost of production of traditional agricultural products to ensure quality food is available, and not replaced by low quality imports.

• Market information and information on improved production technology is seen as most important amongst farmers. However, 50% of the farmers interviewed indicated that they would receive these types of information by word of mouth only.

• Only 20% of farmers in Samoa indicated in a recent survey to have access to credit. This reflects a need to improve access to credit facilities in Samoa, especially for the small farmers.

Two of the Samoan participants at the workshop were the authors of the country case studies. In their country statement the Samoan participants highlighted the importance of decentralised planning and decision making. The role of Government is mainly as a facilitator in the formulation of policies and regulatory measures in the sector. The Ministry of Agriculture established a special planning and economic section staffed with agricultural economists for this purpose. Technical advice is provided on improved practices for small farming, marketing, the processing and dissemination of information, procurement and supply of inputs, production and, to a lesser extend research and advisory services. To ensure information flow, workshops training, establishment of partnerships are encouraged and enhanced by government. The role of the private sector: The country presentation highlighted, that where private sector resources are efficient and capable, government plays a minimal role of support. For instance in the areas of transportation, direct marketing, processing and manufacturing, production, commerce and research the private sector utilise their own resources. Rapid Appraisal or Rural Participatory Approach, has strengthened partnerships between stakeholders and gives farmers the chance direct policy makers. Village visits targets small groups of farmers and resolves issues on site. Demonstrations visits on the management of small farmers has also received positive feedback. Besides setting enabling frameworks and conditions though appropriate policies, Government supports the private sector undertaking research for exports by inviting them to workshops but undertakes limited market research themselves for more serious issues. Government also negotiates bilateral quarantine agreements for export products and takes the lead in researching the appropriate control measures and treatments for export crops. The private sector and can then take over and produce and market products. The small farmers are dependent on commercial banks for financing their ventures as subsidies are not available. Education is seen as the key to understanding and resolving issues on marketing practices.


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(c) Fiji The Fiji country case study discussed diversification options into increased export production by small farmer giving the example of eggplant production and exports. Eggplant exports from Fiji are seen as a success story. This success was made possible by a combination of factors:

♦ well skilled farmers in horticulture productions, ♦ conducive environmental conditions, ♦ readily available markets (Indian-Fijian communities in New Zealand),

available quarantine and treatment facilities (HFTA) and ♦ a good strategic location of Fiji with air and shipping access to many markets.

Potential to serve more markets than the existing markets is given. Major constraints to increased production of high value export horticulture crops and thus to diversification are related to access to land (existing land tenure in Fiji), availability of credit and the ability of farmers to meet export quality standards. The study suggests that a comparative effort of the Government, MAF, the Fiji Vegetable Council and the farmers themselves has to be taken. Government has to solve the issue of leases of native land and ensure that suitable land will be made available for horticulture production also in the future. MAF’s research division has the main role of providing new disease resistant varieties of eggplants and other horticulture crops. The MAF extension services role is to provide better advice on how to grow good quality vegetables which meet export standards. The vegetable councils and exporters role is going beyond assistance in cultivation techniques to the provision of production loans and, most important, make any effort to stabilise farm gate prices to the greatest extend possible. Farmers themselves are asked to continuously try to improve farming practices in order to enhance quality of produce. It is farmers role to go and ask for advice rather than waiting that the advice is brought to them. The Fiji country statement highlighted the appropriate timing of this workshop. After the political turbulence of last year, the country now faces the challenge to revitalise the agriculture sector given the existing structure of the sector to support the diverse small farmer farming systems. Historically, sugar and copra are the main and most important export crops in Fiji. Both are produced by small farmers and have been highly subsidised in the past. While sugar is produced on the main islands Viti Levu and Vanua Levu, for most small farmers and their families (estimated total of 100,000 people) on the remote atoll islands selling copra was the only means access to cash income. Therefore subsidisation is seen to be justified. Other export crops and their respective importance were presented. With more than F$36 mililon earned Kava has become the most important agriculture export crops after sugar. A similar amount is estimated to be sold and consumed domestically. Kava has overtaken ginger which reached and export value of approximately F$15 million. Tropical fruits and vegetable have annual approximate export value of F$ 1 million and F$ 2 million respectively. Both groups of produce are produced predominantly by small farmers (see Fiji case study). Exported fruits include papaya, banana, guava


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and mango. Vegetables include eggplant, okra and chillies are also exported, earning approximately $2m annually. Enormous constraints face the small farmers for instance land tenure, inadequate infrastructure, lack of credit, and in consistency in supply. The role of Government should be actively focussed on facilitating services that are lacking by the private sector. This role should also include the establishment of standards and regulatory functions. It was emphasised that the private sector was crucial to the successful involvement of the small farmers in the export market. However marketing and identification of appropriate crops for the market place was their responsibility (d) Vanuatu The country case study the participant noted that the report was representative of the situation in Vanuatu. In the country statement the participant noted that the workshop issues are timely. A major concern is the insufficient education relating to issues on export production. For instance when the market experiences changes and fluctuations, this often discourages and upsets farmers. Hence issues of importance for the future educational training needs to highlight the following:

a) farmer as social issue versus commercial farming b) farmer attitude on farming on products of our comparative advantage

compared to new commodities and c) understanding basic commodities

To stimulate small farmer participation, in export marketing, the following recommendations are made by Vanuatu:

a) to encourage sustainable farming systems and therefore diversification of crops

b) to organise farmers around one crop where there is a niche market e.g. spices, quality control on selection of the planting material, for cocoa at the processing and storage stage

c) to educate farmers, encourage commitment and change of attitudes for export

d) to host educational and exchange trips for small farmers from within the country & overseas and

e) to encourage co-operation between Government & NGOs’ in their roles in agriculture export development. e.g. similar work programmes between Agriculture Extension Programmes and FSA Field Officers, for cocoa, the secondment of agriculture Cocoa Officers to KAOKA.

The Role of Government: The role of government agencies is seen as to support services and develop good policies relating to commodities in consultation with the private sector or NGO’s. Governments roles is to also facilitate farmers in their roles in food production, harvesting, processing, packaging and export requirements. This is to encourage farmers in their efforts on farming and stimulate them in income earning opportunities.


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It is not governments role to dictate to farmers what they want them to grow. This prevents them from raising their expectations in their productions. Its is essential that for all parties to identify their roles clearly in food production and food exports. The role of the Private Sector The main role of the private sector is seen as a main collaborator, to consult and co-operate with government agencies in support of work of farmers and vice versa. To avoid duplication amongst producers to name one FSA, there should be a government representative on its spices board to ensure that government is made aware of its undertakings and future plans. What currently works for Vanuatu is that of organising farmers around different commodities. that is, the Producers Organisations. The main purpose is to ensure farmers benefit mutually from an export market collectively. Organisations that currently exist include; Spice Farmers, Cattle Producers, Coffee, Producers, Kava Farmers Association and Cocoa Producers. (e) Solomon Islands For the country case study the country representative commented that the consultants study provided a good general view of small farmers involved in export in the Solomon Islands. The representative added that given the high population growth of the island, the workshop aptly highlighted relevant issues that are needed if Solomon’s is to stabilise its economic growth. In the country statement the representative noted that small holder sector in the Solomon Islands, is composed of household unit living subsistent lifestyles. Therefore, most small farmers are not full time in export production. Cattle Beef Production has potential in the small holder under coconut plantations will be the most viable as a single enterprise. The role of Governments is as a facilitator and co-ordinating body with minimal involvement in direct marketing. For copra exports, CEMA requires strengthening focussed on

1. Industry Regulation 2. Price Stabilisation 3. Establish Quarantine facilities & Protocol

The trading aspects of commodities favours private sector management. Therefore the private sector is currently encouraged to market export commodities. This trend is seen in the following;

1) Establishment of the Agro Processing Units for value added products 2) Establishment of Niche market for Cocoa and other crops 3) Zoning of production to suit agronomic and marketing needs of each

product for domestic consumption In the private sector the challenge lies in the need for a diversification policy and consultations with stakeholders to formulate this diversification, programme and strategy. Financial support of this programme is also essential, as is establishing a co-ordinating body who could promote and collaborate with the private sector in areas of

a) market led research programme b) production programme c) proper market channel structure d) technical information sourcing and exploring regional market destinations

and e) how to exploit trade advantages.


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(f) Papua New Guinea No country case study was prepared for Papua New Guinea. In his country statement the participant from PNG, Mr Brian Wapi highlighted the specific differences between PGN with its large land mass, high population and rich natural resources in comparison to the much smaller island countries. This at the same time offers great opportunities but also constraints to agriculture development. After independence the countries agriculture policy supported important substitution. This shifted in the 1980’s to exploitation of non-renewable resources, in particular the forests and minerals. In the 10 years agriculture policy currently in place, higher emphasis is again placed on agriculture and more specifically, improved food security. Programs on rice, grain and improved food crops have been initiated, a new National Agricultural Research Institute has been established and has research stations in the major climatic zones existing in PNG. The extension service has been shifted from the Department of Agriculture to the Provincial Governments. This has caused in some Provinces a disruption in the provision of extension advice to small farmers. The small farmer sector in PNG is also involved in plantation crops. Especially organic coffee is one of the main sources of income for Highland farmers. Other crops grown by small farmers are cocoa, copra and palm oil. Vanilla has been introduced in some Provinces and is seen as a promising crop for the small farmer sub-sector. The Fresh Produce Development Company (FPDC) is providing support to the cultivation and marketing of vegetables. Irish potatoes in the Highland Provinces of PNG are a particular success. The problems facing the small farmers include:

♦ complicated land owner system ♦ increasing law and order problems in the highly productive Highland

Provinces ♦ transport and infrastructure constraints ♦ limited experience to mobilise farmers ♦ co-operatives and farmer organisations either non-existent or non-functioning

The role of Government is to ascertain internal capacity in research and extension, the identification of markets (domestic and overseas), and to encourage the establishment of farmer associations or producer and market groups. The private sector needs to direct Government towards setting the right incentives and policies for a more private sector led agriculture development policy. Donors and development agencies are seen as sometimes arrogant with too much of an “we know it better” attitude. A more participatory type of approach needs to be applied and the linkages to a wider number of national offices/collaborators needs to be extended.

(g) Niue The Niue representative stated that consideration was necessary to link socio-economic issues to the overall economic situation in the country. For years the population has been on the decline and is now being estimated at 1,800 from about 5,000 in 1998. The educated youth is seeking employment and income in New


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Zealand, the older people are remaining and 80% of the workforce is directly employed by Government. One of the issues facing the country is that the average age of farmers is steadily increasing. Most of them are part time farmers anyway. Agriculture seems not to become a career option for the young people. In 1998 Taro export earned close to a one million NZ$ for Niue. Today (2001), 80% of the exported taro is shipped to American Samoa and exports to New Zealand have been reduced. The role of Government is seen as critical in assisting with market research and facilitate the export marketing. .Assistance is required to market vanilla. The current problems with export and transport of taro to New Zealand needs to be urgently addressed. (h) Cook Islands In his country statement the representative from the Cook Islands fully supported the FAO initiative and expressed his gratitude for making the participation of the Cook Islands at the workshop possible. He expressed concern about the limited data on small farmers and their participation in export and market production available in the Cook Islands. Government subsidy schemes are seen to stimulate small farmer and exporter activities to take up market and export production. In the Cook Islands a policy is in place which allow commercial banks to offer low interest loans to farmer for purchasing inputs and equipment. The introduction of high yield, low maintenance crops are seen as the way forward. In the Cook Islands Governments Role in support services is limited to field extension, covering aspects such as recommended crop production and management practices to achieve the best output quality. Furthermore, the certification of all agriculture export crops following the requirements of the importing country as well as the export protocol for crops are Government responsibility and the obligation rest with the Ministry of Agriculture. The physical marketing of farmers product is sole private sector responsibility and so is the establishment of contractual agreements with buyers and producers. In addition, the private sectors role has proven to manage efficiently the harvesting, handling, distribution and marketing of agriculture products, and arrange for payments to farmers. Appropriate structures to facilitate the farmers export production are in place with farmers/growers associations on one side and marketing agents providing feed back and payment to farmers on the other side.


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VI. Group Work and Plenary Discussion on Critical Issues to be addressed

for the Improved Small Farmer Participation in Export and Market Production

Following presentations of the country papers and technical presentations the participants were divided into three working groups to discuss critical issues for small farmers successful participation in export production, i.e. related to the appropriate policies, provision of support services (extension, credit, market information, etc.), research, infrastructure requirements and the roles the private sector, non-governmental and civil society organisations, governments, and donor and development agencies could possibly play. Experiences from individual countries were shared and were the basis for the group work conclusions. The results from the group work was presented to the workshop followed by a lively plenary discussion. During the final session the findings were summarised and formulated and documented as workshop recommendations. The participants insisted on having a workshop statement issued. This statement is copied below followed by the recommendations addressing the major actors involved in support of small farmer agriculture and export production. Workshop Statement: The meeting reasserts the importance of the smallholder sub-sector to the economic and social well being of the island countries in the Pacific and request both, Government and development partners to reflect this in their development programs. Government Roles

1 Credit • To improve access to credit for small farmers in order to facilitate

diversification of farming systems and establish appropriate credit systems (revolving funds, repayment procedures).

• To create and support enabling environment for informal credit schemes (grameen bank type)

• To finance young graduates/trainees to take up commercial farming.

2 Policy Development • To ensure that all actors involved in agriculture are consulted , e.g. through

participatory stakeholder consultations, follow farming systems development thinking (farmer, extension, research and planner interaction and linkages).

• To reflect the high importance of smallholder sub-sector to the economic and social well being of a country/the national economy in Government policy.

• To promote and lobby for continues support to small farmer sub-sector among development partners (donors as well as regional and international organisations).

3 Market Research • To facilitate identification of markets and provide technical support on value

added products. Particularly required for small business operators in identifying appropriate food processing ventures and to provide the necessary technical information for success, including research on quarantine and food safety related issues (CODEX).


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4 Support Services for Small Farmers • Research, Extension, Training, and Information • To provide practical training in both production (e.g. with farmer groups in

farmer field school types) • To train and educate farmers on market, marketing and farm business issues. • To focus on education of young farmers in farming and farm business on

various levels (schools, colleges, and at village/farm level) • To identify successful small farmers and use them as role models for training

purposes.

5 Provide and Maintain Appropriate Infrastructure • E.g. road network, physical markets, shelters, wharves, etc.

NOTE: Government should have no direct role in the commercial production of crops!

Role of the Private Sector

1 Production • To facilitate farmer to farmer extension approach; • To propagate successful enterprise options; • To assist Governments in education and motivation of young farmers , i.e.

identify and recruit young people with interest in progressing further in agriculture (farming);

• To promote successful enterprises in order to improve status of agriculture sector.

2 Market Oriented Enterprise Development (for export and domestic) • To provide necessary facilities to bring farmers together • To create means that exporters can educate farmers on various aspects of

professional marketing and farm business (i.e. from selection of planting material, via harvesting, handling, marketing, etc – in addition to Government)

3 Leading role in input supply

BUT: Seek advice and collaborate closely with Government

3. Role of Donor Agencies

1 Provide Sustainable Funding • Donor agencies to take into account local government and private sector

initiatives rather than pursue their own agenda • Simplification of project approval process. • Support improvement of Agriculture related Infrastructure (markets, roads,

transport, shelters, etc.) 2 Secure project Sustainability • More direct support to target group (small grant schemes, Telefood) • Provide funds to assist in training, education of small farmers • FAO to sensitive donor agencies on the plight of small farmer and the

importance on continues support to small farmer sector in the Pacific


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(because of: income, employment, food security, migration, etc.). Hidden strength of economy, high share of GDP

3 Technical Support Support Government and private sector activities in extension and training

VII Closing of the Workshop The Workshop was officially closed by the FAO Sub-regional Representative, Dr. Vili Fuavao. During the closing session, one participant presented the outcome of the workshop to the representatives from UN and Samoa based regional agencies attending the closure ceremony. The wish was expressed to broadly distribute the recommendations in i.e. the SAPA Newsletter and also at the occasion of the upcoming FAO Ministers Meeting in Vanuatu later in 2001. Participants expressed their satisfaction on the conduct and the findings of the workshop. With a final prayer the workshop finally closed.


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Annex I

Workshop Programme

DAY 1 Wednesday, 14th February, 2001 8:30 Registration 9:00 Welcome and Opening 10:00 to 10:15 Morning Coffee Session 1 Chairperson: Elected Participant 10:15 to 10:30 Introduction to the workshop and the programme

Heiko Bammann, FAO SAPA 10:30 to 11:00 Presentation of main findings of the Regional Study

Andrew Mc Gregor 11:00 to 12:00 Short country statements by Country Representatives 12:00 to 12:30 Discussion of presentation and clarification of open issues 12:30 to 13:30 Lunch break Session 2: Facilitator: Andrew McGregor 13:30 to 16:30 Critical issues to be addressed to support small farmer participation in export

(market) oriented production • Agree on key issues; • Group issues into three main groups re action required by MAF, Donor and

TA, Farmers role; • Agree on questions to be discussed during brainstorming group sessions

on Day 2 DAY 2 Thursday, 15th of February, 2001 Session 3: Chairperson: Elected Participant 8:30am Summary of Day 1 afternoon session and formation of working groups 9:00 to 10:30 Working groups 10:30 to 10:45 Morning Coffee 10:45 to 11:45 Working groups 11:45 to 12:30 Presentation of working group discussions and findings 12:30 to 14:00 Lunch break Session 4: Chairperson: Vili Fuavao, SRR SAPA (requested) 14:00 to 16:00 Discussion on “way forward” and endorsement of recommendations 16:00 Official Closing of Consultation 6:30pm Dinner Function


Mr Tualau Mangisi Business Manager Free Wesleyan Church FWC Office P.O. BOX 57 Nuku’alofa, TONGA. Ph. (676) 23522 Fax: (676) 24020 E-mail: [email protected]. Mr Viliami Fakava Senior Horticulturist Policy and Planning MAF P.O. Box 14 Nuku’alofa, TONGA. Fax: (676) 24271 Email: [email protected] Mr Paula Lavulo Director of Central Planning Department P.O. Box 827 Nuku’alofa TONGA Ph: (676) 23200 Fax: (676) 24260 E-mail: [email protected] Ms Dorosday Kenneth Director Department of Agriculture PMB 040 Port Vila VANUATU Ph: (678) 22525 Fax: (678) 26525 E-mail: [email protected] Mr Peter Kaoh Farm Support Association P.O. Box 253 Santo VANUATU Ph/Fax: (678) 36214 Mr Franklin Qaloboe Director of Agriculture Planning & Management Division Ministry of Agriculture & Primary Industries P.O. Box G.13 Honiara SOLOMON ISLANDS Ph: (662) 21327 Fax:

WORKSHOP PARTICIPANTS: Mr Sauni Tongatule Director of Agriculture Fisheries & Forests P.O. Box 74 DAFF, Fonuakula NIUE Ph: (683) 4032 Fax: (683) 4079 E-mail: [email protected] Mr Awaiki Aperau Senior Field Extension Officer Ministry of Agriculture P.O. Box 96 Rarotonga COOK ISLANDS Fax: (682) 21881 Mr Sakiusa Tabuna Principal Economic Planning Officer (Policy Analysis) MAFF Private Mail Bag Raiwaqa, FIJI FIJI Ph/Fax: (682) 384233 E-mail: [email protected] Mr Hiagi Foraete Principal Agriculture Officer MAFF FIJI P.O. Box 44 Nausori FIJI Ph: 479175 Fax: 400477 Mr Sam Foy Waisali Farm Produce Ltd P.O.Box 717 Suva FIJI Ph: (682) 300892 Fax: (682) 320784 Mr Brian Wapi Chief Market Advisor, Planning & Coordination Division , Agriculture P.O. Box 417 Konedobu, NCD PAPUA NEW GUINEA Ph: (675) 3235187/86 Fax: (675) 3235190/0563

Annex III Mr Frank Fong Chief Agriculture Economist MAFFM 3rd Floor ACB Building , Apia SAMOA Ph: 22561 E-mail: [email protected] Ms Aida Faumui Senior Trade & Investment Promotion Officer Dep. of Trade, Com. & Industry Government Complex P.O. Box 862, Apia SAMOA Ph: 20471 Fax: 21646 E-mail: [email protected] Dr Sonny Lameta Senior Agriculture Economist 3rd Floor ACB Building MAFFM Apia SAMOA Ph: 22561 E-mail: [email protected] Mr Maanaima Matau Senior Agriculture Officer ADVISORY Nu’u Station MAFFM SAMOA F/P: (685) 20607 Mr Nemaia Tekiu Chief Crop Development Officer CROPS Nu’u Station MAFFM SAMOA F/P: (685) 20607 E-mail: [email protected] Mr Andrew McGregor Managing Director Trade and Development Office P O Box 2413, Government Building, Suva FIJI Ph: (0679) 305 844 Fax: (0679) 305 68 E-mail: [email protected] Mr Heiko Bammann Farming Systems Development & Marketing Officer FAO/SAPA SAMOA Ph: (685) 22127/22377 Fax: (685) 22126 E-mail: [email protected]


Annex III

Group Photo:

Sitting (left to right): Paula Lavulo, Dorosday Kenneth, Serge Ducasse, Vili A Fuavao, Steve Rogers, Ada Faumui, Sam Foy. Standing(left to right): Brian Wapi, Hiagi Foraete, Sakiusa

Tubuna, Viliami Fakava, Saui, Tongatule, Tualau Mangisi, Peter Koah, Nemaia Tekiu, MaanaimaMatau, Awaiki Aperau, Frank Fong,Sonny Lameta, Andrew MCGregor, Franklin Qalaboe, Teresa

Ngau Chun.

Thank you for your participation !

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