The Agricultural Marketing Authority (AMA) has acknowledged that it is purchasing supplies from vendors at a loss compared to international exporters. The Executive Chair, Jone Sovalawa, made this revelation during a presentation to the Standing Committee on Public Accounts, indicating that some exporters are securing these commodities at significantly lower prices.
Sovalawa explained that the AMA’s current operational model is primarily designed to support local farmers; however, this has raised concerns about the AMA’s financial viability. While some exporters are paying as low as $1.00 to $1.80 per unit for their supplies, the AMA continues to buy at $2.00 to $2.80. He emphasized the need for the AMA to streamline its operations and adjust pricing strategies to remain competitive.
Additionally, Sovalawa conceded that exploring partnerships with private exporters could enhance market access and profitability. His vision includes focusing on aggregation, quality control, and a consistent supply of certified produce to private sector buyers. This shift is aimed at reducing operational costs and addressing logistical challenges, such as limited storage capacity and inadequate cold chain infrastructure.
This acknowledgment of the AMA’s financial struggles and his upcoming strategies highlight a proactive approach to strengthen the agricultural sector in Fiji. These steps are essential, especially as the AMA plans to invest in upgrading facilities and establishing better partnerships to support rural communities.
The commitment to enhance market access and improve operational efficiencies reflects the ongoing efforts within the agricultural sector to address both current challenges and future opportunities. By working closely with private exporters and focusing on quality and sustainability, there is hope for a more resilient and profitable agricultural landscape in Fiji.
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