Fiji is losing substantial export earnings from cocoa, with global prices nearing $10,000 per metric tonne. Cacao Fiji’s Arif Khan calls for government regulation and the establishment of a cocoa board to enhance industry structure. Given the global shortage of cocoa, strategic investment and planning are critical for growth.
Fiji is currently facing a significant loss in potential export earnings from cocoa, as the global price nears $US10,000 ($F22,920) per metric tonne. However, the local cocoa industry lacks the readiness for mass commercial production. Cacao Fiji’s director, Arif Khan, advocates for government action to properly regulate and formalize this sector in order to capitalize on these market conditions.
According to Mr. Khan, there exists a global cocoa shortage, primarily influenced by declining production rates in key cocoa-producing nations such as Ghana and Ivory Coast. Factors such as diseases, inadequate investment, and climate changes have contributed to this decline. The current global deficit is estimated at approximately 500,000 metric tonnes, which has resulted in a staggering 300 percent increase in cocoa prices.
Mr. Khan suggests the Fijian government should focus on cocoa as a viable commodity for investment. He emphasizes the necessity of establishing a structured industry framework, including the formation of a cocoa board to oversee daily operations. Without strategic planning and clear objectives, such as targeting 5,000 farmers and achieving 2-3 metric tonnes in production within the next few years, he warns that progress in the cocoa sector will be limited.
Having recently attended the annual cocoa convention in Amsterdam, Mr. Khan believes that Fiji’s unique branding can be leveraged to market locally produced cocoa products as premium items, potentially commanding superior prices in international markets.
In summary, Fiji is at a critical juncture regarding its cocoa industry, with external market conditions favoring investment. The call for a structured regulatory framework, including a dedicated cocoa board, is essential for maximizing growth. As the global market continues to experience significant cocoa shortages, Fiji has the opportunity to position itself as a key player within this lucrative sector, provided that strategic planning is prioritized and executed effectively.
Original Source: www.fijitimes.com.fj
