Local exporters face challenges during pandemic

By Adel Fruean 19 March 2021, 2:00PM

Some of the challenges currently faced by local exporters include access to market and finances as well as high tariffs imposed by some overseas countries. 

This was highlighted by the President of the Samoa Association of Manufacturers and Exporters (S.A.M.E.), Tagaloa Eddie Wilson in an interview with the Samoa Observer. 

He spoke on the challenges faced by Samoa’s local exporters amidst the global economic downturn brought on by the COVID-19 pandemic.

“As of today, our number one export is [unprocessed] fish, second to it is taro, nonu at number three then we have beer,” he said. 

Tagaloa added that manufacturing [value added goods] plays a key role in our ability to increase our exports. 

“One of the key challenges is supply: we have got an abundance of taro because the impacts of COVID-19 had a lot of our people, our farmers, go into short-term cash crops which is a natural reaction because that gives you the quickest return on your money. 

“We have countries like Fiji, Papua New Guinea and Tonga going through the same phase. 

“As a result the market for taro was basically oversupplied and that led to a decrease in prices and that is to be expected.” 

He also said in terms of supply issues, Samoa does not have enough cocoa beans. 

“We do not have sufficient kava for export, and there is a huge search and demand for coconuts for virgin coconut oil for the coconut industry. 

“I know the Government is doing a lot of effort working with the farmers to increase supply. 

“But the key challenge is that when you start talking about cocoa, kava, coconut, they are long-term crops; which means that a farmer needs finance to sustain their operations for four to five years until they start getting fruits from this.”

In addition, the S.A.M.E. President said another key challenge for exports is access to markets, meaning the ability to reach borders and meet biosecurity requirements. 

“We are still trying to get our fresh taro into Australia. The other key market access challenge is tariffs. 

“Unfortunately with high tariffs we cannot compete in the Asian markets, yet they are potential markets for Samoan products. 

“An example of a commodity that offers the most opportunities for Samoa in Japan, Korea and China is our fresh fish.

He also said that their Association has moved to work with Government and the Ministry of Foreign Affairs and Trade to try and negotiate free trade agreements.

“China at the request of our Government last year made a specific provision for nonu. They dropped the tariff for nonu alone to 5 per cent unfortunately everything else we have to pay these high duties. 

“If we reach solutions for these challenges there are huge opportunities for us to increase our exports.” 

According to a report issued by the Samoa Bureau of Statistics (S.B.S.) on “Overseas Merchandise Trade,” Samoa's trade deficit has widened to over $67 million in January 2021.

In January, Samoa’s imports totaled $71.52 million which exceeded exports valued at $4.182 million. 

The report found the total value of exports declined by 44.4 per cent or $3.34 million, falling to $4.18 million in January 2021. 

The monthly decrease was due to reductions in the value of exports including fish, crustaceans and molluscs (down $0.17 million); minerals fuels, mineral oils and products (down $0.19 million); beverages, spirits and vinegar (down $0.12 million); and vegetable products (down $0.59 million).

Exports to New Zealand also dropped by $0.4 million. Exports to Tokelau were down $0.15 million with the largest recorded decreases in January 2021 were in products such as coconut oil, taro and taamu.

Limitations on transportation led to the nation registering nil exports to China in January. American Samoa continued as Samoa's leading export destination in January and accounted for 38.9 per cent of the total value of exports. 

By Adel Fruean 19 March 2021, 2:00PM
Samoa Observer

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