Fiji and Tonga sign a new air agreement

The Fiji Government and Tonga signed a new Memorandum of Understanding regarding air services between the two countries.

The agreement allows the national carriers of the two countries to operate air services with maximum capacity of 1,000 seats per week with no restrictions on aircraft types and frequency of flights.

The agreement would help assist with tourism and tourist movement between the two countries and also with movement of cargo for imports and exports.

Fiji's carriers are Air Pacific, Pacific Sun and Air Fiji.

Revised Economic Projections for Fiji

The following is a copy of a statement released today, Monday, 21 April 2008, by the Governor of the Reserve Bank of Fiji on revised economic projections for Fiji.


"STATEMENT BY THE CHAIRMAN OF THE MACROECONOMIC POLICY COMMITTEE AND GOVERNOR OF THE RESERVE BANK OF FIJI - REVISED ECONOMIC PROJECTIONS

The Chairman of the Macroeconomic Policy Committee and Governor of the Reserve Bank of Fiji, Mr Savenaca Narube, today announced that “economic growth for 2008 is now projected at
1.7 percent, down from the 2.2 percent announced in October last year”.

The downward revision is mainly due to lower projections for the community, social and personal services sector. Lower forecasts of crop, cane and sugar output, partly due to the
effects of Cyclone Gene, also led to lower revisions for the manufacturing and agriculture,
forestry, fishing & subsistence sectors. These downward revisions could not offset the higher projection in the mining sector as gold output is now included in the new 2008 forecasts after a lapse of mining operations for most of 2007. The new 2008 forecasts also took into account higher projected visitor arrivals which is expected to have a positive impact on the hotels & restaurants and transport industries.

Speaking on last year’s growth, the Governor said that, “Fiji’s economy is estimated to have
contracted by 4.4 percent in 2007, compared to the 3.9 percent decline forecasted in October last year. The downward revision was mainly a result of lower than expected cane and sugar output which was affected by adverse weather conditions and mill interruptions. The performance of the building & construction sector was also weaker than earlier envisaged.

Last year’s contraction was almost broad-based with electricity & water the only sector estimated to have grown. Leading the decline in the economy were the building & construction and community, personal & social services and manufacturing sectors. The absence of mining in 2007 reduced economic growth by around half a percentage point.

The Chairman added that, “while economic recovery is still expected in the next 2 years, it will
be lower than earlier projected. We now expect the economy to grow by 1.1 percent in 2009,
and by 1.6 percent in 2010”.

With regard to trade, Mr Narube explained that, “exports are projected to expand by 7.7 percent this year while imports are expected to grow by 4.6 percent. The growth in exports is
encouraging. However, in absolute dollar terms, the growth in imports is expected to outpace exports. This will lead to a slightly higher trade deficit in 2008. Higher payments for mineral fuels continue to contribute to strong import growth. We therefore need to grow exports at a much higher rate.”

Mr Narube stated that, “official foreign reserves at the end of March were at adequate levels of
$909 million, equivalent to around 4.0 months of imports of goods”. Mr Narube also highlighted that “inflation at the end of the first quarter was 7.5 percent, and while the year-end inflation is currently projected at 5.0 percent, there are upside risks to this assessment.”

2008 Fiji National Budget

The 2008 National Budget was delivered by the Minister of Finance on Friday, 23 November 2007. The Budget has some very favourable aspects that help with those running businesses or intending to set up businesses in Fiji. For a copy of the Budget, you can subscribe to our fijisale Yahoo Group and look under the Files section of the Group. A copy of the 2007 Revised Budget is also there for comparison. To subscribe to our Yahoo Group, just enter your e-mail address in the form at the top of this blog and click on the "Join Now!" button.

Fiji-Australia Business Council : 2007 Business Forum

The Fiji-Australia Business Council is holdling its 2007 Business Forum from 2 to 4 December 2007 at the Radisson Resort, Denarau, Nadi. The theme for the Forum is "Business - Driving the Way Forward". Keynote speakers include :

• Murray Proctor, Australia's Ambassador for HIV/AIDS on "HIV/AIDS in the workplace";
• Greg Urwin, Secretary General, Forum Secretariat, on "Regional Trade Agreements";
• Sada Reddy, Deputy Governor, Reserve Bank of Fiji on "Economic State of the Nation";
• Amy Auster, ANZ Head of International Economics, on "Fiji Economic position in the Region"; and
• Jaindra Kumar, Fiji's Trade Commissioner to Australia on "Growing our Exports".

Topics to be covered include :

• The Economy;
• Emerging Opportunities
• Growing our Exports
• Regulatory Issues
• The Knockout Blow
• What would change everything
• Where to from here.

For mroe information and to book a place, pls visit Fiji-Australia Buisness Council's website on http://www.fabc.com.fj/ or call Sonal on telephone (679) 3315988 extension 243.

Fiji Sugar Corporation records F$6 million profit

The Fiji Sugar Corporation has recorded a F$6.9 million profit for the year ended 31 May 2007. This compares with the F$7.2 million loss made in the 2006 financial year.

The profit has been attributed to the sale of surplus sugar to the European Union after Africa, Caribbean and Pacific countries could not fulfill their EU quota. There were also significant improvements in mill performance and production during the year.

The company said that it sold one shipment of sugar to the European Union at three times more than the world sugar price.

The company and the sugar industry is also undergoing a restructure which is expected to be completed in 2008.

The upcoming challenge for the industry is the reduction in preferential sugar prices by 2009.

Fiji Sugar Corporation is listed on the South Pacific Stock Exchange in Suva.

Seminar : Hidden Profits in Exporting to the USA

The Fiji Trade Commission, Los Angeles, in conjunction with the FTIB will be conducting a seminar on profitable exporting opportunities to the USA on Thursday, 11 October 2007, at the Southern Cross Hotel, Suva.

The workshop topics include :

• Profitable exports to the USA - come and learn which Fiji exports to the USA are growing and profitable, and how your products can be promoted in USA trade shows through the Fiji Trade Commission.
• Hidden Profits in Exporting to the USA - learn the technical and business issues of US import requirements, customs regulations, logistics, distribution channels, etc, and how these can make your businesses more profitable, with special examples on : handicraft and gift items, black pearls, agro business, fisheries, timber and mahogany, and manufactured goods and food products.

Presenters are :

1. Ilisoni Vuidreketi - Fiji Trade Commissioner to the USA;
2. Ashok Sadhwani - Expert and Consultant in USA International Trade Compliance and Operations.

Who should attend?

• exporters and established businesses with a product(s) ready for export;
• export-ready companies and established businesses who are non-USA exporters;
• micro, small and medium enterprises (SMEs);
• current exporters to the USA will also find the seminar useful.

Registration fee is F$35.00 per person. For registration, pls contact Ms Alka Nand at FTIB on telephone (679) 3315988 or e-mail alka@ftib.org.fj.

Registration closes today, Tuesday, 9 October 2007.

2007 DHL Exporters of the Year Award

The Fiji Islands Trade and Investment Board (FTIB) has begun preparations for the 2007 DHL Exporters of the Year Award. Applications are being sought from businesses that export products and services from Fiji.

The relevant application forms can be downloaded from the FTIB website, http://www.ftib.org.fj/.

Tickets to the Awards Night are also selling at F$150.00 per entry.

For more information, please contact Ms Jogina Yang on telephone (679) 3315988 or email jogina@ftib.org.fj.

Fish exports to the US grows

Fiji exports to the US has continued to grow and has surpassed the US$1 million mark in April 2007.

Read more in an article reproduced from the Fiji Times below.


"Improved growth in fish export to US, Wednesday, August 01, 2007

Fiji's exports of fresh and frozen fish to the United States of America achieved a record in May, passing the $US1million ($F1.59m) mark for the first time to hit $US1.056m ($F1.68m).
This represented a 166 per cent increase over May, 2006, and a 6 per cent growth over April 2007.

Fiji Trade Commission Los Angeles office trade and marketing officer, Colin King said: "We have been pushing hard to open up new markets and expand existing ones for fresh and frozen fish here in the USA and we are pleased to note the good results achieved by this export industry.

This export product performed extremely well in the first five months of 2007, averaging a growth rate of 32 per cent per month and surpassing all records for the same period in the past five years."

He said this category of export included fresh or chilled reef fish (eg sabutu, kawakawa, ta, kawago), frozen deep-sea fish (eg walu, tuna, mahimahi), dried and smoked fish, vacuum packed fillets and live fish.

Mr King said the growth demonstrated the high and increasing demand for Fiji fish, not only by former Fiji residents, but by small US restaurants.

He said the challenge faced by this commodity was the local exporters' ability to maintain consistent and sustainable supplies to meet the US demands.

Trade Commissioner Ilisoni Vuidreketi said their export promotion strategy was to develop selected industries like fish and agro-produce that had high growth potential.

"We are delighted to see the steady growth of fresh fish, one of our important resource-based export industries, and we forecast that it will set a new annual record this year," he said.

Fiji's top three exports to the USA are tuna loins, Fiji Water and sugar. Fresh and frozen fish has now moved up, surpassing timber, to become the number four export to the USA."

Korean investors interested in Fiji

Investors from Korea have shown interest in setting up a bank and an alternative power generating venture in Fiji, according to the Ministry for Commerce.

Two companies, EZ Industries Corporation and Kyeryong Construction Company, have shown interest in alternative power generation from sugar and cassava. Korea has also shown interest in buying sugar from Fiji.

There has also been interest in other Fiji products including fish and fish products. Korea experiences shortage of fish and fish products, providing a potential export opportunity for Fiji fish.

A Korean bank has also indicated interest in setting up a banking/financial institution in Fiji to assist South Korean investors finance their projects in Fiji.

Kookmin Bank, hte largest bank in South Korea (based on asset value and market capitalisation), has indicated its interest in setting up business in Fiji.

WHO Study reveals kava is safe

A World Health Organisation (WHO) Study has said that kava is safe.

In the study the WHO has recommended that all kava products be available on prescription and not over the counter. It has also said that kava should not be used in patients with liver disease or a history of such or in patients that take excessive alcohol.

The news has been welcomed by the Fiji Kava Council that has been fighting recently against sanctions placed on exports placed on kava exports from Fiji to certain overseas countries.

Countries that had banned the import of kava included Germany, UK, France, USA, Canada, Japan, Australia and New Zealand.

Australia recently banned the import for commercial purposes of kava and only allowed small quantities to be brought in by individuals for "ceremonial" purpose.

The WHO study should now provide more openings for the export of kava overseas from Fiji.

Dubai Company interested in oil refinery

A Dubai based company is interested in setting up an oil refinery in Fiji and is conducting a feasibility study on the issue.

The interest was advised during a recent Fiji exploratory mission on trade and investment to Dubai, United Arab Emirates.

In addition another Dubai company is also interested in setting up a financial institution in Fiji to provide the full range of merchant banking services. This company will be visiting Fiji soon to pursue the matter.

Meetings between Fiji representatives and those from Dubai revealed that there was an interest from Dubai for Fiji products such as fresh fish and fisheries products, processed and sawn timber, halal meat including poultry, beef and goat meat, fresh fruits and vegetables.

To facilitate market access into the United Arab Emirates, Dubai companies are also interested in assisting Fiji companies with infrastructure development, technical expertise and capital required to set up operations intended to provide consistent and timely supply of quality products.

Korean investors interested in bio-fuel

Korean investors are interested to explore opportunities of power supply through bio-fuels in Fiji, according to the Fiji Islands Trade and Investment Bureau (FTIB).

The feedback followed a delegation led by the Interim Commerce Minister to Seoul, Korea, last week to attend a seminar.

Investors from the tourism, information, communications technology, banking and finance, ship building and repairs and infrastructure development including airport and seaport development, attended the seminar.

There is demand for Fiji-made products in Korea for products such as mineral water, sugar, fish products and sawn timber.

The Fiji delegation has since moved onto Dubai, United Arab Emirates, for similar discussions.

Another potential export from Fiji

Another newly identified potential export from Fiji is the "balabala", the dried black trunk of a tree fern that grows in the wild in Fiji. Balabala is a newly discovered niche export product which is making it big in the United States of America.

Read more in the article below from the Fiji Times, Tuesday, 19 June 2007.


"Cama cashes in on balabala, Tuesday, June 19, 2007

Think orchids and immediately you’d picture the balabala the dried black trunk of the tree fern that is made up of thin black stick-like things that are easily broken off.

Now why the link with the orchids?

Well, as most people probably know, the balabala is the plant on which orchids flourish best.

At Wainadoi, past Veisari, on the Queens Highway outside Suva, there’s a little shed from where Cama Vakaloloma sells balabala.

Well and good you may think but what Cama has done with these plants is cut them into shapes like the Fijian bure in a bid to make them bit more presentable.

He is in his 50s and hails from Moce, in Lau.

He worked 13 years for Leylands, in Naboro, before he succumbing to ill-health, which ended his employment there. Cama said he almost lost his life and during his recovery, he was confined to home.

He said the forest area behind his home had wild balabala galore so he decided to cut and sell them by the roadside.

It is a decision he never regretted as he can make up to $80 on a day.

But the best part about it all is that he didn’t even have to worry about growing and constantly nurturing the tree ferns, which thrive in damp areas.

Easy money that’s what he calls it.

And, it was a like a blessing in disguise because he couldn’t really do heavy or active work.

He said at first he started by selling the balabala in its natural shape before deciding to get creative and carve shapes out of it.

At first he would cut them into smaller cylindrical shapes but after a while, he started by cutting out designs on them using his cane knife.

Then he decided to carve bure and other shapes.

That creative decision brought its own rewards from one plant, he can cut and carve two or three items.

Cama says he started selling the balabala plants for $3 but that has since risen to $8-$9, depending on the size of the plant.

He laughed and said he decided to make it cheap because the plant grew naturally in abundance.

Most balabala buyers are florists or hoteliers.

As such, Cama says he is never short of buyers and makes quite a killing at the end of the day.

He said the balabala was rather funny because once you cut it down, it won’t grow there again.

And he was equally puzzled on how the balabala regenerated because it didn’t appear to have seeds.

Cama said at one time, a person bought all the uncut (and uncarved) plants that he had been selling –– so that in a space of a few minutes, he was $84 richer.

Yesterday, Cama was helped by his nephew, Vitale Varo, who hails from Navunikabi, in Namosi.

Vitale says the balabala plants are easy to get because they are light and were there for the taking.

He said he was only visiting his aunt and uncle and learnt about carving balabala from watching his uncle.

One balabala he had carved was in the shape of a burekalou and you can’t help but think of the burekalou at the Arts Village in Pacific Harbour when you see this particular balabala.

He says the road leads right to the forest and all that was needed to fetch the balabala was a cane knife and a sturdy wheelbarrow to transport it back home. He said they were never short of buyers and at night, they left the balabala in their stall. But no one has ever stolen the plants even though the stall is unattended at night.

And, just like his uncle Cama, he says carving shapes out of balabala doesn’t take that long to complete as his prized burekalou carving took him just a little more than an hour to complete.

Now don’t hesitate to stop by their stall, which is on the slope just before you reach Wainadoi Village (if you’re heading towards Navua and beyond), if you’re one for a touch of uniqueness in plants. "

Seminar of Exporting to New Zealand

The Fiji Islands Trade and Investment Bureau, in collaboration with the Pacific Islands Trade and Investment Commission (PITIC) NZ, is organising a seminar on exporting to New Zealand. The objective of the seminar will be to boost awareness and update stakeholders on the various requirements, challenges and procedures of exporting to New Zealand. The seminar will cover the following issues :

• general packaging and labelling requirements for fresh fruits and vegetables;
• NZ export requirements for fresh fruits and vegetables;
• NZ export requirements guideline and how to use this guideline;
• labelling requirement of fresh goods and processed goods;
• requirements for exporting resource-based products to NZ; and
• bar coding.

Exporters, potential exporters, freight forwarders and interested stakeholders are invited to attend the seminar which will take place on Tuesday, 19 June 2007, 8am to 5pm, at JJ's on the Park, Suva.

Registration fee is F$35.00 per person.

For more information or to register, pls contact Jogina Yang on e-mail jogina@ftib.org.fj or telephone (679) 3315988.

Fiji Water demand grows

The demand for "FIJI Water", bottled and marketed by Natural Waters of Viti Limited, keeps growing. The company's biggest challenge is to meet the demand.

The company has continued to make significant investment in Fiji and will be opening its third line of production at its Yaqara facility shortly.

"FIJI Water" is bottled at source from an artesian well in the Yaqara range in the Nakauvadra mountains in the Ra Province on the Island of Viti Levu in Fiji.

The company, Natural Waters of Viti Limited, was first set up in 1996 and started its export of FIJI Water in 1997. It currently has about 200 employees.

FIJI Water is sold at a "premium price" through retail outlets in the USA, Canada, France, Australia, UK and other countries.

There are other areas of Fiji which have more better tasting water than that marketed as FIJI Water but whose water have not been bottled. Some of the landowners on whose land the water sources are have decided to hold back on their resource given the (over) supply in the market.

Note : For information of some of these "undiscovered" water sources, pls call on telephones (679) 3396427 and (679) 9921427 or e-mail gilbert@connect.com.fj.

More exports to Canada

More exports, particularly of fresh fruits and vegetables, to Canada from Fiji is being encouraged. This was the focus of the trip to Fiji this week of Fiji Consular to Canada, Ashwant Dwivedi.

Among the suggestions that Dwivedi made in a Fiji TV appearance this evening included :

1. that Fiji aim to increase exports of fresh fruits and vegetables to Canada which was an open market (unlike a closed market like the USA which has only a list of permitted imports from countries such as Fiji);
2. that exporters work on being able to meet the demand levels of Canadian consumers when they enter that market;
3. that exporters work on being competitive with the pricing of their products; and
4. that the "Fiji" brand, including all products marked as being from Fiji, have premium pricing in the Canadian market which Fiji exporters could take advantage of.

For more information on this, pls visit www.fijitv.com.fj.

Dalo exports - a big potential

Dalo exports from Fiji has a big potential with around 30,000 tonnes expected for export this year. In 2006, total dalo production was 76,155 tonnes compared to 83,751 tonnes in 2005.

11,434 tonnes of dalo, valued at $20.93million, were exported in 2006 compared to an export of 9,959 tonnes, valued at $19million, in 2005.

The Agriculture Ministry said that with Fiji dalo well known for its taste, it provided an opportunity for farmers to produce more for export.

The slight reduction in dalo production last year was due to farmers producing cassava which were mostly bought by a local factory. Farmers were now planting more cassava as it is easier to grow and it got a good price locally.

60 per cent of the dalo exported was from Taveuni Island while the rest was from the Central Division.

Dalo price in the local market is F$10.00 to F$15.00 per bundle in the local markets while the New Zealand wholesale market prices for Fiji Pink is $65.00 per 30 kilograms and Fiji white is $55.00 per 30 kilogram.

Dalo planting takes place from August to November with harvests from February to March each year.

Note : Advertise your products and services on our Suva blog and take advantage of our low advertising rates. Check here for our rates.

Opportunities for Fiji's black pearls

The Fiji Trade Commission in the USA is conducting market research to identify niche market opportunities for black pearl exports from the country.

The primary objective of the research is to open access to the USA for Fiji's black pearl farmers, especially village based farmers, and to boost growth and development of the local industry.

Black pearls from Fiji is an emerging resource based commodity that holds a lot of potential for growth and expansion, but needs direct support in marketing and market access, according to the Fiji Trade Commission.

Fiji's black pearl industry is relatively new and small with 10 farms (four owned by foreigners and six by local villages) in operation in the Vanua Levu area and started in 1998.

The Fisheries Department in Fiji said that the study would be good given that finding the right export market is what the industry lacks. USA is the world's biggest buyer of black pearls.

Tahiti leads Pacific Island countries in the export of pearls to the USA with average earnings of $US45 million ($F73m) per year during the period from 2004 to 2006.

In comparison, Fiji began pearl cultivation and production less than 10 years ago and averaged $US151,138 ($F245,040) annually in exports to the USA over the past three years. The industry is targeting an annual export of F$50 million of the product in 10 years.

The study will cover issues including market entry requirements, demand for loose and mounted pearls, basic customer or buyer profiles, location of buyers in the USA contact, trends and constraints, and lessons to be learnt from Tahiti.

A presentation of the findings of the study will be made to the public in Suva and Savusavu in June or July 2007.

United States continues to show confidence in Fiji

The United States of America has shown its continued support for Fiji and the Pacific Islands region in efforts to promote and increase the duty free treatment of exports to the USA from the region.

USA also announced that a new regional office will be built in Suva, Fiji, to oversee US public diplomacy activities throughout the Pacific.

The sign of confidence provides a big boost to Fiji's efforts to rebuild its economy over recent months.

Note : Traders and merchants that wish to take advantage of our wide readership base from Fiji, Australia, USA, NZ and Canada, can check our low rates for advertising on our other blog here. To contact us, pls send an e-mail to gilbertv2@connect.com.fj or call telephones (679) 3396427 or (679) 9921427.

More demand for travel to the Pacific from Asia

A report in the Fiji Times today, Friday, 4 May 2007, highlights an increase in demand for travel to/through the Pacific from Asia. Figures quoted from the International Air Transport Association showed that Asia-Pacific aviation was up 6.9% in March 2007 while available seats grew at only 6%.

Singapore Airlines said the figures indicated that there was room for the airline to fly between Australia and the US, a route the Asian carrier is blocked from.

An approval of more airlines to service the Australia-USA route would mean more stopovers for Fiji which will bring us more tourists and opens up more air cargo and export links to Asian countries.

Before Air Pacific acquires the capability (aircraft capacity) to fly direct to Singapore and other Asian destinations which it plans to do, they could learn from large established airlines such as Singapore Airlines if these were approved to fly the Asia-Pacific route.

Singapore Airlines has also been an airline that has proven itself in terms of its high service standards - again lessons that Air Pacific could benefit from.