Q1. Hon Mr Galuinadi,
What is the major responsibility of your Ministry,
what would be the main objective and the most
important challenge in the near future?
A1. My Ministry's major responsibility
is to promote the country's agricultural sector
to ensure that it reaches its full potential.
More than 50% of the country's population
still live in the rural areas and agriculture
remains their major source of livelihood.
So government effort in ensuring improved
living standards for the majority of these
people depend largely on agriculture. The
ultimate objective is for the country to have
a viable agriculture sector so that we are
able to feed ourselves. Thus food security
is accorded a high priority in our development
agenda. First, we must provide adequate food
for the people of this country, before we
explore exporting excess production to the
various markets abroad. Talking about export,
my Ministry is also responsible for the country's
major export commodity, which is sugar. The
industry has a large institutional structure
with various stakeholders involved in the
running of the industry. The industry is mainly
driven with the Fiji Sugar Corporation, playing
a prominent role in the production and processing
of sugar. The most pressing challenge facing
the sugar industry and other agriculture industries
is the renewal of lease under the Agricultural
Landlord and Tenant ACT (ALTA). Native lease
began expiring in 1997 with most of the leases
being reverted back to its land owners. However,
Government is mindful of the needs of farmers
whose leases are not being renewed and has
identified suitable land for them to continue
with their activities. Resettlement of farmers
into new areas remains to be an important
function of my Ministry. It is pleasing to
note that a large proportion of farmers who
have been resettled into new areas are actually
doing better in terms of improved income level
than what they were getting through sugarcane
farming. Our objective into the medium term
is to start looking for opportunities to diversify
our agricultural sector in order to maintain
our level of food security. We also have to
pay more attention to the new trade environment
set by the World Trade Organization which
would require us to produce agricultural products
(both primary and processed) that can compete
in the highly competitive markets abroad.
This also includes meeting the demand created
by the tourism industry. We have enormous
opportunities in the production of fresh fruits
including papaya, pineapple, processed fruit,
ginger, traditional root crops, such as dalo,
coconut products such as coconut cream, activated
carbon, and organic products, vegetables such
as eggplants, cucurbits, watermelon, rock
melon, zucchini and certified organic products
which have 40 to 60% market premium depending
on the product. More emphasis will be placed
on formation of the farmers groups and co-operatives
organized by producers to drive most of these
industries and the role of Government is only
to facilitate through the provision of necessary
infrastructure, technical advice, market facilitation
and research. The problem in the past is that
we tried to do everything for the farmer.
In the long term, it often turns out to be
unsustainable thus not improving the creditability
of the Ministry.
Q2. Concerning the Agriculture Land Lease
issue. What are your Projects and policies
that will bring about public confidence
and stability?
A2. ALTA has dictated agriculture development
for the last 30 years and has restricted NLTB,
Land Conversation Board and other regulations
to carry out its tasks. In essence the continuous
evictions of ALTA expiry leases is a direct
result of ALTA which has given the controlled
rental mechanisms for the last 30 years. The
leasing arrangements with NLTB under NLTA
will not only open up large tracts of native
land for agriculture and sugarcane farming
but also allows greater flexibility between
the landlord and tenant for a term of up 99
years. The ALTA/NLTA leasing arrangements
are presently being reviewed with the proposal
that all native land under ALTA to revert
to NLTA leasing arrangement when the ALTA
leases expire after 30 years. With more flexibility
under the new leasing arrangement, it will
be conductive to investment and hence will
improve public confidence and stability in
the country. It is envisaged that on the acceptance
of NLTA will minimize displacement of farmers,
and there is a more likely chance tenants
will give a better deal on a more flexible
legislation like NLTA.
Q3. What are the initiatives of your
Ministry addressed to increase Investments
and to make Fiji a more a more attractive
investment destination?
A3. We have general fiscal incentives
that are being controlled by the Fiji Customs
and Revenue Authority that could attract investors
to invest in the agricultural sector. I still
believe that providing and maintaining a stable
economic environment is the most important
incentive that any Government can provide
to any private sector investor. Governments
effort is to facilitate private sector efforts
not by direct intervention in trading or production
but by the provision of necessary infrastructure,
cost effective technical advice, negotiation
of quarantine agreements with importing countries
and overseeing their enforcement, facilitating
the development and their transfer of appropriate
technologies and providing access to credit
for viable projects.
Q4. What is the role of the Foreign development
banks, international organizations and other
donor agencies in the development of your
sector?
A4. Foreign development banks, international
organizations and donor agencies have a critical
role to play in assisting the agriculture
sector to maximize its potential. They have
an important role in complementing Government's
resources in the areas of infrastructure and
providing technical assistance to enhance
the capacities of our farming communities.
The areas include: the provision of Irrigation
Infrastructure particularly in dry areas;
Land Development and Improvement; Mechanization;
Post production Infrastructure; Rural Infrastructure
such as roads, electricity supplies and telecommunication
and other infrastructure that will stimulate
agricultural investment and growth; And Technology,
Generation and Transfer to farmers. We have
been fortunate to be closely involved with
the food and agriculture Organization of the
United Nations (FAO) which has been assisting
us through a number of Technical Co-operation
Projects to improve the capacity of our farmers
and staff. In relation to the investment,
one of the areas that needs to be addressed
is the availability of credit. This has been
a major constraint to the development of the
non-sugar sector by the various financial
institutions particularly the Fiji Development
Bank. They have to develop better ways to
serve the financing needs of the economy most
important sector. |
Q5. How would
you describe the contribution of the Sugar
and Agriculture Industry to the Fiji's National
GDP?
A5. The contribution of Fiji's agriculture
to GDP has remained at approximately 16% over
the last decade and sugar remains the main
activity in the agriculture sector. Subsistence
crops contribute a similar amount as sugar
to GDP each year averaging 40% of total on
the continuation of subsistence farming and
its transformation to semi-commercial production
of crops. The sugar industry remains a fundamental
importance of the Fiji economy. Cane occupies
over 50 percent of arable land. The industry
directly employs 13 percent of labor force,
contribute around 9 percent of GDP and generate
some 30 percent of total domestic exports.
The import leakage from growing and processing
cane remain relatively small and because of
its small farmers structure the multiplier
linkage are more favorable than far most other
foreign exchange generating industries. The
economic impact of the drought of 1997 and
1998 is an indication of how dependent the
economy is on the sugar industry. With two
successive years of low production the economy
contracted by 4% despite a very strong performances
of the tourism, garments and kava sectors.
Q6. What are the main advantages of Fiji
as an agriculture investment destination
as compared to neighboring countries?
A6. As you know, Fiji has a number of
advantages that make it attractive to potential
investors in agriculture. The country has
a tropical climate that varies from rainfall
in the East of the main islands to arid conditions
in the west, enabling the production of a
wide variety of agriculture products. Fiji
location is particularly advantages for exports
of fresh produce due to seasonable of supply
relative to other producers. Fiji is also
disease free and has preferential trade and
bilateral quarantine agreements with a number
of major markets. Fiji's diversification efforts
particularly in horticultural produce as fresh
fruits and vegetables face competition in
international markets with the products from
Australia, United States, Mexico, Philippines,
Cook Islands and Tonga. Despite the competition,
Fiji's high value fruit and vegetable exports
have good prospects for long term sustainable
development due to certain competitive advantages.
The more significant among these are: First
its Isolation, Fiji is reasonably in its location.
This location has meant relative freedom from
major pests and diseases. This quarantine
status has given access to some market from
which competitors are excluded or restricted.
An example of this is mango and papaya exports
to Japan; Second its Strategic location and
Transport links, Fiji's strategic location
in the Southern Hemisphere gives it an opportunity
to be a seasonal supplier of a range of horticultural
products. These seasonal opportunities are
very well utilized to produce and export fresh
ginger to North America, mango to Japan, and
egg plant to New Zealand. The strategic location
of Fiji also enables it to have direct transportation
linkage to major Pacific Rim markets. Fiji
exporter have direct air links to Sydney,
Melbourne, Auckland, Los Angeles, Tokyo and
Seoul. New Zealand, Australia, and West Coast
North American markets are well served by
competitive shipping services; And Third,
Duty free access to some markets, duty-free
access to markets present a major advantage
to Fiji's high value exports. Fiji products
have duty free access to all the markets under
various trade agreements. However, with movement
towards free world trade in agriculture the
value of duty free access is diminishing.
Q7. What kind of opportunities do you
see in the agricultural sector for the future?
A7. For some high value product, tourism
can provide a domestic demand base upon which
an industry can be established. Hawaii's macadamia
nut industry, the largest in the world, is
build around exporting via the 'suitcases'
of tourists. Tourism offers Fiji's diversified
agriculture with similar opportunities. Environmental
and Health concerns of the market place, here
there is another opportunity. Developing markets
based on environmental sustainability, which
capitalize on the increasing health concerns
and environmental awareness of consumers in
importing countries notably in Europe and
Japan. Fiji has a number of distinct advantages
in developing significant certified organic,
products grown in a sustainable manner without
artificial chemicals.
Q8. What measures have you implemented
in order to improve the quality of life
of the Fijians?
A8. Government is concerned at the slow
economic progress that Fijians have made over
the years as compared to other races. The
governments blueprint programme and the 20
year Strategic Plan for Indigenous Fijians
and Rotumans are all part of Government effort
in ensuring that Fijians are actively involved
in the development process. The Ministry has
a wide range of programmes aimed to assist
indigenous Fijians involvement in the agricultural
sector. This ranges from the normal advice
provide through the extension services and
assistance provide through the Farming Assistance
Programme which is aimed at assisting farmers
who wish to adopt cane farming. The Ministry's
regular programmes will not specifically be
aimed at all races, most Fijian people have
access to these services thus the biggest
beneficiary of agricultural programmes. Under
the Governments Blueprint Programmes special
assistance was given to indigenous Fijian
replacement farmers to ensure that they will
be successful when they replace a tenant whose
lease has expired. Government is also placing
emphasis on assisting institution that affect
Indigenous Fijians ability to operate commercial
agricultural enterprises. One area that is
often criticized is marketing. We have just
completed a marketing study, which has come
up with a Policy Framework for marketing in
rural areas. The implementation of this programme
this year would certainly enhance the participation
of indigenous Fijians in agriculture.
Q9. What is the role of the Foreign investor
in all this and how do you plan to attract
them?
A9. We certainly would welcome any potential
investors who will involve local indigenous
Fijians in the development of their resources
and my ministry will certainly provide all
that support that may be required.
Q10. Hon Minister, What could you tell
us about yourself?
A10. All my life I have worked in the
sugar industry. I Started as a research officer
and then I went to the CSR (Colonial Sugar
Requirement), a company in Australia. Then,
I became General Manager in the mills and
took over as Managing Director at FSC until
I retired in 2001. Six months after retired
I was called by current PM to get into politics.
Well, I thought that the sugar industry is
very politicised so I decided I should come
and help out. We won the elections and I was
lucky to be sent to my own area, the one I
know.
Winne cannot be held responsible for
unedited transcription.
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V.I.P. INTERVIEWS
