AGRICULTURAL EXPORTS SERVICE INDUSTRY

Overview

Fiji is on the verge of exciting new eras of growth and diversification in the production and export of agricultural products. It is in a unique position relative to many other more developed countries where it has identified many markets and is yet unable to service them.

Agriculture Policy Objectives

• To accelerate agricultural diversification for horticulture, floriculture, traditional food crops and high value niche exports
• To enhance consistency of quality supply
• To revitalise agricultural research and access to technology
• To improve export market access
• To improve supply and effectiveness of credit.
• Download pdf for more information.

Incentives

• Import Duty on capital goods Agricultural is Free Fiscal + VAT (Value Added Tax is payable upfront but will be refunded subsequently.
• Applies to all goods (raw materials) presently under the 10 percent band and most that are duty free
• Excludes essential goods for education, health and agriculture, which will continue to enter duty free.
• Intermediate goods benefit from a reduction from 15 percent to 10 percent.
• Download pdf for more information.

Related Case Study and Testimonial

• TBD

'BACK OFFICE' INFORMATION EXPORT SERVICE INDUSTRY

Overview

With technology becoming commonplace in the provision of telecommunication services, it makes commercial sense to consider outsourcing certain office processes offshore to take advantage of reduced labour costs and time differences. Fiji is ideally situated as a location for establishment of information exporting enterprises since its location gives it favourable time difference with key business centres around the world. Additionally, a robust IT infrastructure add to Fiji’s attraction for investors.

Highlights

• Cost competitive
• A business-friendly government
• World-class technology and infrastructure
• Well trained, friendly and flexible workforce
• Download pdf for more information.


Incentives

• Duty-free imports of IT and telecommunications equipment
• 100% deductibility of all R&D expenditures
• Investment allowances for investments in IT
• Unrestricted movements of foreign exchange and profits repatriation
• Download pdf for more information.


Related Case Study and Testimonial

• TBD

ELECTRONICS INDUSTRY

Overview

The electronics industry in Fiji is still in its infancy but ripe for growth. There are currently two plants designing and manufacturing electronic goods for export to markets including Germany, Australia and Malaysia. Both plants are automated and dependent on large labour supply, a requirement Fiji is able to easily meet. Locally produced electronics include postage computing scales, postal databanks, auto park lights, transmitters and receivers for remote control equipment. Investments in electronics are greatly encouraged because Fiji has all the prerequisites including an affordable English speaking workforce, tax free zones, and incentives for export-oriented ventures. One of the many possible areas for investment would be in computer assembling which has a huge and exponentially increasing global market.

Government Policy

The government favours overseas investment proposals that will:

• Generate increased exports
• Make provisions for employment and training opportunities for local people
• Involve maximum processing of products in Fiji
• Download PDF for more information

In principle, the government will encourage any export-oriented project found suitable for location in Fiji.

Related Case Study and Testimonial

• TBD

FABRIC PRODUCTION FOR THE CLOTHING INDUSTRY

Overview

The garment industry in Fiji has grown rapidly over the last 10 years and comprises of around 100 export-orientated companies.  Almost all of this industry's fabric requirements are imported from Australia or Asia and a local fabric production operation is likely to be very successful.

A properly structured fabric production/finishing operation in Fiji would enjoy a number of competitive advantages:

• Infrastructure
• Sourcing of inputs
• Supporting industries
• Lead time
• Download PDF for more information

Related Case Study and Testimonial

• TBD

IT SERVICE INDUSTRY

Overview

The Fiji Islands is a prime location for investment in Information Technology investments. Reliable fibre-optic telecommunications networks provide high-speed access to the rest of the world via the Southern Cross Cable and the presence of an English-speaking workforce are both key assets for companies looking to develop technology-based businesses.

Highlights

• Business-friendly government
• World-class technology and infrastructure
• Well-trained, friendly and flexible workforce
• Cost-competitive
• Download PDF for more information

Incentives

• Duty-free imports of IT and telecommunications equipment
• 100% deductibility of all R&D expenditures
• Investment allowances for investments in IT
• Unrestricted movements of foreign exchange and profits repatriation
• Download PDF for more information

Related Case Study and Testimonial

• Nista Design Ltd (Website: http://www.nista.com)

• Oceanic Communications Ltd (Website: http://www.oceanic.com.fj)

PROCESSED FISH AND SEAFOOD INDUSTRY

Overview

The fisheries sector is of major importance to the Fijian economy, primarily as a source of protein, employment and foreign exchange earnings. Moreover, this sector is cited as being among the sectors in the economy demonstrating the highest growth potential.  Offshore pelagic fisheries and reef fish species offer a major avenue for commercial expansion in Fiji. 

The Government of Fiji is of the view that marine resources be exploited in a manner that ensures maximum sustainable returns to the economy.

Resource Base

Fiji's 200 mile exclusive economic zone (EEZ) covers a very large area of some 1.3 million square kilometres.  The large stock of marine resources in the EEZ presents many opportunities for investment.  Tuna and deep-sea snapper are commercially exploited and both are primarily destined for the export market.  The coastal waters, coastal mangroves and surrounding reefs have a sizeable stock of  fish including crabs, clams, shellfish, prawns and lobsters.  In addition, various varieties of seaweed are also found in Fiji waters. 

Related Case Study and Testimonial

• Tosa Bussan (Fiji) Ltd

FOOTWEAR INDUSTRY

Overview

The global demand for footwear remains high. In most developed and developing countries, the demand for leather footwear is rapidly increasing. Most footwear is made using synthetic and rubber raw materials but the demand for leather uppers remains high.

Most mechanised footwear manufacturers are still labour intensive. With the increasing cost of labour in developed countries the trend is a shift in relocating investments to developing countries to take advantage of a cheaper and highly productive labour force.

Resource Base

Fiji has one tannery that supplies local footwear manufacturers with leather for sandals and belts. However, the tannery is unable to fully meet the demand for quality leather for quality shoes such as dress shoes or uppers. Therefore manufacturers source most of their leather requirements from Australia or New Zealand

Infrastructure Development

Electricity supply, industrial water, telecommunications facilities, international airport and seaport facilities are available to support export-oriented modern footwear manufacturing enterprises.

There are factories available on lease around industrial zones in major cities in Fiji, such as the one in Kalabo near Suva, which provides fully-serviced modern factories and also has land available for factory development to meet  manufacturers’ requirements.

Related Case Study and Testimonial

• TBD

PROCESSED FRUIT AND VEGETABLE PRODUCTS INDUSTRY

Overview

Fiji is located in a region with a tropical climate and therefore has a variety of tropical fruits and vegetables which, if processed, will add value and give greater returns.  Because of their delicacy and sensitivity to handling and also because of the technology required for the growing, harvesting, transporting, packing and ripening of fresh fruits and vegetables it is prudent that optimal benefit is derived from these crops.  To achieve this, processing of surplus, damaged and undersized fruits and vegetables should be undertaken. This will overcome the problem of glut in the marketplace, add value to the resource, increase shelf life and ease transport problems.

Resource Base

There are opportunities for processing fruits and vegetables in Fiji.  Fresh produce thrives in the tropical climate and fertile soils, and this ensures an adequate supply of inputs for processing. These include pawpaw (jam & juice), tomatoes (tomato juice and canning of peeled tomatoes), pineapple (juice and fruit canning), coconut products (cream, timber, speciality oil), duruka, mixed vegetables, guava (jam), mango jam/juice and herbal kava products.  Since these fruits and vegetables are seasonal crops the plant will need to have flexibility to allow processing of all these items utilising the same plant thereby ensuring operation of the plant throughout the year.

In addition, potential also exists for the production of dalo, cassava, breadfruit and banana chips both for the local as well as export markets.  The raw materials are available locally or can be easily produced.

Infrastructure and Land Availability

Fiji can provide the entire infrastructure required for the establishment of enterprises of this nature.  Fully serviced industrial lots with the necessary services including electricity, water and telecommunications supply are available.  These industrial lots are within close proximity to modern sea and airports, commercial centres and transport facilities.

Related Case Study and Testimonial

• TBD

FURNITURE INDUSTRY

Overview

The local furniture industry has been in existence in Fiji for a long time. The industry started producing various types of furniture, wooden toys, wood picture frames, doors, and knock-down furniture components for export in the early 90’s. The world trade in furniture has been steadily increasing over the years.  Furniture made out of exotic timber commands premium prices in developed markets.

Resource Base

The total area of natural forest cover is estimated at 187,700 hectares or 48 % of the land area. There are 91,445 hectares of plantation forests: pine (40,730 hectares) and mahogany (50,712 hectares). The total estimated log volume of commercial species is 64,913 cubic metres.  The composition of this volume can be increased by nearly 45% if species not currently regarded as "commercial" are included.

The domestic production of sawn timber has been an average of 90,000 cubic metres and forest reserves are sufficient to support the furniture industry for decades to come.  Timber can be purchased directly from the sawmills or through retail outlets.  Mahogany is expected to play a major role in the furniture industry in the coming years. The Ministry of Forests hopes to achieve its target of mahogany plantation forest to 85,000 hectares by the year 2010. Bamboo and rattan and coconut timber are also available.

Infrastructure Development

Fully-serviced industrial lots are available to erect factory buildings.  The industrial lots are situated close to business/commercial centres for the convenience of business ventures as well as their workers.

Furniture for exports can easily be containerised and shipped to export markets, as regular shipping services are available.  All required facilities including utilities are available in the serviced industrial estates/sub-divisions.

Related Case Study and Testimonial

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HYDROPONIC INDUSTRY

Overview

Fiji’s domestic tourism industry currently loses about 40% of its revenue due to the "leakage effect" on food imports, especially vegetables and other commodities used by hotels for visitors. This  has a negative impact on Fiji’s Balance of Payments to the tune of approximately $F30 million annually.

This area is of priority focus for the sustainable development of the country’s future tourism industry and the security of its market niche exports. The identification of companies and/or personnel who have extensive experience in the field of organic hydroponic production is crucial, especially on exotic vegetables for the country’s domestic hotels and tropical fruits for its export markets.

Types of Commodities with Potential

• Tropical Fruits
   >> Local - papaya, pineapple, mango, oranges, dawa, vutu, guava, coconut, chestnut,  melon
   >> Exotic: apples, strawberries, kiwi fruit, melon,
• Vegetables
   >> Tomatoes, lettuce, cabbages, beans, potatoes, spinach, onion, mushrooms, garlic, pumpkin, carrots, cauliflower, chicory, turnips, capsicum, celery, sweetcorn, peas, broccoli, truffles & shallots

Related Case Study and Testimonial

• TBD

LEATHER PRODUCTS INDUSTRY

Overview

A major percentage of the leather produced in the world today is used for the manufacture of shoes and garments.  However, these products are traditionally excluded from the articles embraced by the term "leather goods", which cover such articles as ladies handbags and other bags, cases of all kinds - from suitcases to small eye-glass cases, wallets,purses and belts. 

Leather goods are made in most countries and demand for these products is usually quite high.  The production process is highly labour-intensive.  In some extreme cases almost no machinery is needed.

Resource Base

One tannery in Fiji produces vegetable tanned leather, chrome tanned leather and fashion printed leather. The local tannery is supplying practically all its output to other export-oriented manufacturing enterprises and has the capacity to increase their leather production for certain types of leather to meet additional demand. They also have very competitive prices for locally manufactured leather.

Adequately trained manpower to service the leather products manufacturing industry is available locally.

Infrastructure and Land Availability

Well-developed infrastructure facilities are available to service leather products manufacturing operations.  Fully-serviced industrial lots are available in all major centres.  Regular supply of electricity and water, modern telecommunication services, modern ocean and airport facilities serviced on a regular basis by international carriers are all available to support export-oriented manufacturing enterprises.  In addition, ready built factory/office premises are available at reasonable rates.

Related Case Study and Testimonial

• TBD

MILK FISH FARMING INDUSTRY

Overview

The culture of milkfish has been developed for over a century in South East Asian countries - notably the Philippines, Taiwan and Indonesia - where it has largely been relied upon as an important source of protein. During the last 10 years milkfish has been used progressively by Taiwanese longline fishing vessels as bait. Milkfish live bait in tuna longline have progressively recorded an increased catch rate to 30 percent, targeting particularly yellow fin tuna. Taiwanese longline fishing vessels based in Guam have recorded a progressive landing of 91 percent from the previous 20 percent yellow fin tuna per trip using milkfish live bait. Now milkfish farming for live bait is a $6 million  industry in Guam.

Fiji’s tuna longline industry stands to gain from the use of milkfish as live baits for its fishing fleets. The longline industry is currently earning about F$35 million to F$40 million in foreign exchange.

Market

Milkfish is currently used as an intermediate good - an input - in the form of live baits for catching fish. The fact that milkfish baits supplement the longline tuna industry, which earns around F$40 million in export income, is indicative of the fact that there is a considerable local market.

Government Policy

Government policy encourages the development of the milkfish industry in Fiji for both local use and export. Projects such as the milkfish industry that create employment, earns/saves foreign exchange and enhances local skills  are greatly encouraged.  

Related Case Study and Testimonial

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INDUSTRIAL MINERALS INDUSTRY

Overview

The demand for industrial minerals in Fiji has grown significantly over the last 10 years.  Industrial minerals can be associated with virtually every activity of human life from foods, clothing, housing, transportation, communications, chemicals and construction. The strength of the industrial minerals industry is closely linked to general economic conditions.

Continued economic growth and development will result in new markets and applications for industrial minerals. Currently, most industrial minerals are imported into Fiji. However, Fiji has significant resources of industrial minerals that could be developed for local markets as well as export.

Resource Base

The major known deposits of industrial minerals in Fiji are aggregates, brick clays, limestone and marbles, mineral sands and bauxite. Deposits of barite, kaolinite, zeolite and perlite also occur. Phosphate deposits have been recorded at a number of sites, particularly on islands in the Lau group.

The capital cost for the development of industrial mineral deposits is comparatively low. Extraction techniques are relatively simple in most cases. Location of deposits from markets and transportation costs can be overriding factors. Deposits can be developed on a small scale and provide many business opportunities for small developers.

Infrastructure and Land Availability

Many of the industrial mineral deposits are located near well-developed infrastructure. In some instances, it may be necessary to generate power from diesel-powered generators.

Industrial mineral deposits on native lands may be developed on site by the native landowner(s). For those deposits located on state or freehold property, suitable land is available for processing facilities and utilities.

Related Case Study and Testimonial

• TBD

PAPER AND PAPER PRODUCTS INDUSTRY

Overview

The development of raw materials and the invention of paper machines have ushered in an era of high quality and mass production, and paper is now called the symbol of culture.

To ensure that the continuous demand is met, plantation forests have been established to supply raw materials to paper mills.  Recycling of used paper has become big business.

Resource Base

As there is no local production of the required imports, all raw materials for production of paper products are currently being imported. Even wood chips produced locally are exported to Japan for further processing. 

There is a sizeable supply of waste/used paper in the country that could be recycled to make paper products. There are several corrugated carton manufacturers, various printing companies and paper packaging manufacturers in Fiji and they annually generate off-cuts in large quantities, which could be recycled.  In addition, waste/used paper generated by household and commercial entities would be quite sizable.

Infrastructure and Land Availability

Fiji’s infrastructure is well-developed to support the establishment of export-oriented manufacturing industries.  Industrial sub-divisions/industrial estates are spread all over the country and are fully serviced.  A tax-free export processing zone has been established as well.

The country’s four ports of entry and its two international airports are geared to meet  the industry’s import and export demands.  Utilities and communication facilities are readily available.
 
Related Case Study and Testimonial

• TBD

PLASTIC PRODUCTS INDUSTRY

Overview

The raw material for the plastic industry is generally associated with the petroleum industry where it has wide applications.  Plastic is a compound that can be synthesised with various raw materials as petroleum, natural gas or coal, and industrial salt.  There are solids, liquids and semi-solids such as phenol resin, urea resin, polyethylene and styrol.  Each is used in different ways.  

Generally plastics are classified into thermosetting and thermoplastic resins. The popularity of plastic is due to a number of reasons including it being a good electric insulator, it is lighter and strong enough compared with metals and ceramics, it is immune to moisture and mould, it will not rust or rot, and it allows difficult and complicated shapes to be produced easily.

Resource Base

Currently, this industry is totally dependent on imported raw materials as there is nothing produced locally and it is unlikely that it will become available from local sources in the near future.  However, the opportunity exists for the recycling of waste plastic products which in turn could be used as input for manufacturing of other products.

Infrastructure and Land Availability

Fiji has well-developed infrastructure facilities such as modern telecommunications, sea and airports, fully-serviced industrial estates and a reliable supply of electric power and water,  to support the establishment of manufacturing enterprises. Industrial land is available in all major centres.

Related Case Study and Testimonial

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VACUUM PACKAGING SYSTEMS FOR THE GARMENT INDUSTRY

Overview

Conventional manual packaging systems have been utilised predominantly by the Fiji garment industry over the decades.  The additional handling required by these systems has been identified by lower quality finished garment products.  In addition, it is costly, time consuming and requires a space for a hanging system. These inadequacies are synonymous with manual packaging systems which help local manufacturers’ distinguish themselves as high quality international suppliers. 

A feasibility study of alternative cost effective options has identified a high-tech vacuum packaging facility as most practical.  The model of technology required by the industry would primarily redress its deficiencies.  In addition, advanced elements are required, such as pre-conditioners, moisture reduction, progressive and critical relaxation of fibres and the stabilising of molecular mobility within the fibres.

Market Demand for Service

Fiji’s garment businesses have established themselves as a maturing industry with great potential for expansion as reflected in the continuous growth trend in export and investment aggregates over the recent past periods.  Total garment export figures registered over the last three years mirror this increasing contribution.

Related Case Study and Testimonial

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