Field report from Fiji
Whilst it is generally easier for Pacific Island companies to export to Australia and New Zealand than to neighbouring island states, Fiji-based Kaiming Agro Processing Limited (KAPL) has overcome technical and quality challenges to successfully trade cassava, ginger and taro to Kiribati and Tuvalu
Established in 2005, KAPL launched its business in the semi-processing and export of ginger, helping to boost an ailing but once vibrant ginger industry in Fiji. With naturally fertile soils, pristine and regular high rainfall, Fiji produces some of the world's finest quality ginger due to its low heavy metal content and lack of chemical residues. The nutritional and flavour attributes are also considered to be superior to ginger produced in Asia.
However, despite a demand for ginger in export markets, the revival of production was not without its challenges. “In the beginning, we only produced brined ginger in an old lean-to shed,” says Calvin Kaiming Qui, owner and managing director of KAPL. “Lack of good quality equipment was a problem and regular supply of raw ginger, as well as good technical support and quality control.”
With Fiji’s ginger farmers struggling to make a living, the Ministry of Agriculture realised that it needed to step in and provide some assistance to the sector. At the same time, in 2009, the EU funded Facilitating Agricultural Commodity Trade (FACT) project was launched by the Secretariat of the Pacific community (SPC) to provide support for a variety of agribusinessess across the Pacific.
For KAPL, FACT was instrumental in supporting the procurement of second hand processing equipment worth around €68,000 from a ginger factory that was closing down. “With this set of equipment, a whole new processing line was set up. As soon as the equipment was installed, KAPL was able to start processing, train the workers, identify markets and broaden their contacts,” says Apiame Cegumalua, SPC export processing officer.
Keeping up with market demands
KAPL has continued to grow and expand its product lines. In October 2011, the first batch of crystallised ginger was produced and products now include ginger in syrup, sugar coated ginger, ginger puré and juice. Around 1,300 t of ginger are now processed and exported to Australia, New Zealand and the United States with 70% supplied by around 400 contracted growers and the balance bought from the open market.
Ninety staff are employed in the processing factory. Despite this success, Qui knows that in order to keep the factory and products to international standards there is always much to do to keep up with the demands of the market. “We have to keep on upgrading our facilities, maintain and improve the quality, and to brand our products.”With support from a follow-on EU programme,
Increasing Agricultural Commodity Trade (IACT), KAPL acquired Hazard Analysis and Critical Control Points (HACCP) and ISO 22000 certification in 2012 in order to comply with food safety regulations in importing countries.
“Meeting these international standards helps benchmark our products in international markets and assures overseas buyers that our exported products are safe for consumption and are of high quality,” continues Qui. More recently, KAPL has also gained organic certification, which has opened up new markets for his organic ginger in Europe.
Pacific potential
As well as now producing a range of ginger products, KAPL also exports frozen taro and cassava to South Pacific island communities in Australia and New Zealand, as well as 40 t to Kiribati and Tuvalu. Potential to increase the amount of root crops exported to these islands exists but is dependent on shipping services becoming more regular. “At the moment, it seems to be easier for Pacific Island companies to export to Australia and New Zealand, than to a neighbouring Pacific Island. This is due to many factors, including higher freight costs, irregular shipping, poor port infrastructure for warehousing and refrigeration, as well as a limited number of distributors in many Pacific Island countries,” says Sally-Ann Hughes, SPC export marketing officer.
She continues that many Pacific countries produce the same type of products, which limits intra-regional trade. However, adding value to fresh produce makes it more attractive to consumers in other Pacific island markets. Processing also adds advantages for retail shelf life, for building up inventories in times of supply shortage, and for shipping larger volumes at lower prices. “Kaiming Agro has successfully branded its products and built consumer demand because the products are processed and packaged,” Hughes states. In the case of Kaiming Ginger, the fact that the company is able to offer processed ginger in many different forms (glace, crystallised, puree and juice) automatically differentiates it from the fresh ginger sold locally and makes it attractive to consumers in other Pacific Island markets.”
Qui is naturally proud of his achievements as an industry leader as well as appreciative of the support he has received to help revitalise the Fiji ginger industry. “I am proud to be part of a growing network of ginger farmers and by developing synergies with our regional as well as international partners, this should help to profile Pacific products to lucrative markets in the years ahead,” he concludes.
