Ministry committed to working with Coconut Millers

April 28, 2023


While visiting the Fiji Coconut Millers Pte Ltd (FCML) today, the Minister for Agriculture and Waterways, Hon. Vatimi Rayalu acknowledged the work of the company and assured the Ministry will continue to collaborate with them.

Mr John Deo, the General Manager of FCML, gave an overview of the company's operations and the problems it faced.

Established in 1985, FCML was initiated as Copra Millers of Fiji by the Coconut Board of Fiji. Ninety-eight (98) per cent of the company's shares are owned by the Fiji Government, while the Coconut plantation owners hold the other two per cent.

He mentioned that coconut is grown all over Fiji and Cakaudrove province supplies 70% while the rest comes from the outer islands.

“Besides the mill in Savusavu, we have four other mills in the maritime islands of Lakeba, Cicia, Gau and Rabi, which are managed in partnership with the Department of Energy,” said Mr Deo.

He said the company buys dried copra from the farmers and supplies it to the mills and out of the four mills in the outer islands, Cicia is the highest supplier of dried copra, which is over 500 tonnes/year.

The FCML offers the minimum guaranteed price of $1350/tonne for dried copra.

“The company suffered a loss of $85,000 in 2022, however, recorded sales of over $3.5m.”

Mr Deo said they were looking forward to further improving sales this year on the condition that there was a normal supply and no disruption to the industry caused by a cyclone.

“We reach out to the farmers in Napuka, Saqani and Naduri to buy whole coconut, raw copra and dry copra at the farm gate on a weekly basis.”

CMFL currently produces Crude Coconut Oil, Virgin Coconut Oil, Coconut Cooking Oil, Coconut soaps, Coconut cream/milk and Copra meal. The company also produces coconut water, which is a pilot project and is available at Extra Supermarket and is planning to produce Coconut Chips this year.

Some of the major challenges faced by the company are a drop in the supply of raw materials because of senile coconut plantations, unavailability of technical skills in Product Development, Quality Control and Food Technologists.

Mr Deo recommended the Ministry appoint a commodity officer for the coconut industry and reinstate a coconut task force.

In his response, the Hon. Minister emphasised the need to work together and informed the company to discuss with the Ministry staff should they need any assistance in terms of replanting the coconuts or any variety of coconut needed for a new product.

“The Ministry will continue to work with the FCML. If you want the production to increase or a certain variety to be produced for a particular by-product, the Ministry will produce the seedlings for the farmers,” said Hon. Rayalu.

“A lot of families throughout this province and Vanua Levu depend on coconut as their source of income and we have a responsibility to them. We want the coconut industry to contribute as much as it can to the livelihood of the people and the economy of the country.”

Hon. Rayalu also stressed the need to stay competitive in the market and be careful with the choices made.

“Product diversification is needed for the growth of any company and you have achieved at least six by-products of coconuts. We can accomplish more because of coconuts and the products they offer, however, we must know what the market desires,” said Hon. Rayalu.

The Hon. Minister confirmed the revival of the Northern Coconut Taskforce and promised to appoint an agricultural officer solely dedicated to coconuts to revive the industry.

-Ends-