Agriculture Sector

Agriculture has an immense potential in Fiji, our virgin soils and tropical climatic conditions allow for myriad of opportunities, targeting the domestic, local hotel industry and export markets.

Fiji has approximately 497,787 hectares or 28% of land available for agricultural purposes. Agricultural land use is broken down into temporary crop land, fallow land, permanent crop land, pastures, coconuts, natural forest, planted forest and non-agricultural land. The highest percentage of actual land use (37%) is for permanent crops followed by pastures (19%) and natural forest (17%).

The crop sub sector is mainly driven by the root crops and horticulture industry. The major commodities are taro, ginger, papaya, pineapples and Bilateral Quarantine Agreement (BQA) commodities such as eggplant, okra and breadfruit. Taro and cassava are the most planted root crops with taro geared mainly for the export market. The livestock subsector is dominated by beef and dairy production.

Fiji has existing trade agreements and favorable quarantine arrangements that allow the trade of agricultural produce with countries such as Australia, NZ, US, Europe, Canada, China and neighboring Pacific Island countries. The domestic market, particularly the tourism industry, offers the biggest opportunity for expansion in the agricultural sector.

To meet the growing demand, the majority of tourism operators are importing fruits and vegetables from Australia and New Zealand as local producers are unable to supply the required quantity and quality of such commodities. Volatility in production levels and inconsistency in quality have also hindered the development of value-adding industries in the country. This has resulted in increased reliance on imported raw materials.

The Value of Crop and Livestock domestic export for both fresh/ chilled and value added product has increased significantly from $146.23 million in 2009 to $197.98 million in 2015 with a 5% average annual growth rate. Fiji usually imports around $506 million worth of Crop and Livestock commodities (fresh/ chilled & value added) yearly for the past decade.

OPPORTUNITIES IN THE AGRICULTURAL SECTOR

  • Up to 497,787 hectares of land suitable for agriculture.
  • Opportunities for foreign investors to lease or buy land.
  • Very low entry cost in agriculture business when compared to other countries. Landholders willing to engage investors or develop partnership arrangements.
  • Potential development projects including organized systems of producing, processing, and marketing crops, livestock, and aquaculture products.
  • Cultivation of a variety of vegetables primarily eggplant, okra, rourou (taro leaves), cabbage, bean, pumpkin, tomato, capsicum, and amaranthus.
  • Pawpaw, pineapple, and banana are considered as the major fruit commodities in Fiji.
  • Fiji imports an average of close to 34,000 tons of rice annually to meet domestic consumption.
  • Fiji’s dairy production averages from 11-18 million liters annually compared to domestic demand of 80 million liters.
  • Fiji is producing an average of 2,495 tons of fresh/chilled Beef and importing an average of 2,290 tons of fresh/chilled beef and 250 tons of prepared meat (corned beef) annually.
  • Our 870,000 residents and nearly 800,000 tourists create a lucrative domestic market of over 1.6 million people.
  • Tax exemption is offered for new commercial agricultural farming and agro-processing.

INCENTIVES

COMMERCIAL AGRICULTURE AND AGROPROCESSING

The income of any new activity in commercial agricultural farming and agro-processing approved and established from 1 January 2015 to 31 December 2018 shall be exempt from tax as follows:

  • Capital investment from $250,000 to $1,000,000, for a period of 5 consecutive fiscal years; or;
  • Capital investment from $1,000,000 to $2,000,000, for a period of 7 consecutive fiscal years; or;
  • Capital investment above $2,000,000 for a period of 13 consecutive fiscal years.

BIO – FUEL PRODUCTION

10 year tax holiday is available to a taxpayer undertaking a new activity in processing agricultural commodities into bio-fuels as approved by the Commissioner from 1 January 2009 to 31 December 2018. To qualify, the taxpayer must have:

  • Minimum level of investment of $1,000,000; and employ 20 local employees or more for every income year.
  • Duty free importation of plant, machinery and equipment for initial establishment of the factory. Duty free importation of chemical required for biofuel production.
  • The Importation of all agricultural items will be subject to zero duty.
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Fiji Trade Commission - PNG & MSG

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