The Fiji Dairy Cooperative Company Limited (FCDCL) signed a Memorandum of Understanding with the Fiji Development Bank (FDB) on Dairy Farming Loan under the Agriculture Value Chain Financing (AVCF) model in Nausori today.

The Minister for Agriculture and Waterways, Hon. Vatimi Rayalu while officiating at the signing said this move was aimed at supporting and contributing to the government's priority of strengthening the dairy industry.

He said FDB, being a crucial partner in the agricultural sector, has recognized the need for a dedicated and tailored financing solution for our dairy farmers.

“The Bank has existed for over 56 years now and remains Fiji’s only national development financial institution supporting the agriculture sector wholeheartedly. It has contributed significantly to the success of Fiji’s economy across generations,” said Hon. Rayalu.

He said FDB’s objective of improving our people’s socioeconomic status by assisting them with their needs and making the right development investments remains at the heart of their operations. 

“By repackaging the Dairy Farming Loan under the AVCF model, the FDB aims to provide simplified, more accessible and comprehensive support to our dairy farmers. This model will help strengthen the dairy industry by addressing the various links in the agriculture value chain, from farm to market.”

Hon. Rayalu stated that the total consumption of liquid milk in the country is around 18-20 million litres per annum and the industry is producing close to 11 to 12 million litres of milk from the formal and informal sector per annum.

He said Fiji imported an average of FJ$95.8m worth of dairy products per annum in the last 10 years (2013 – 2022).

“Import of dairy products has increased from $70.8m in 2013 to $138.7m in 2022. There has been a 9% increase in the import of dairy products, with 78% of them being imported from New Zealand alone,” said Hon. Rayalu.

“The dairy industry faced a significant challenge due to Bovine Tuberculosis and Brucellosis, resulting in the loss of productive animals, but our farms are gradually recovering.”

He added that this initiative by FDB not only aligns with the Government’s priority of ensuring food and nutritional security but also shows our commitment to the growth of the dairy industry and the welfare of our farmers.

“We firmly believe that through strategic partnerships and targeted interventions like the Dairy Farming Loan under the AVCF model, we can create a more sustainable and resilient dairy sector,” said Hon. Rayalu.

FDB Chief Executive Officer, Mr Saud Minam said by incorporating the Dairy Farming Loan into the AVCF model, the FDB aims to contribute to the government’s priority of strengthening the dairy industry.

He said the AVCF model emphasizes the importance of a well-coordinated and integrated approach, considering the entire value chain from farm to market.

Mr Minam further stated that this facility allows for loans of up to $100,000.00 to be obtained for a range of purposes with an interest rate of 4.98 per cent.

“This Dairy Farming Loan facility comes with several key features and benefits that address the specific needs of our dairy farmers. With flexible financing options, competitive interest rates, and loan repayment structures tailored to the industry’s requirements, we aim to make financial assistance easily accessible to those who need it the most,” said Mr Minam.

The new Dairy Farming Loan under the AVCF model will offer flexible financing options, allowing farmers to invest in modernizing their operations, improving animal husbandry practices, and enhancing milk quality.

All applications for this facility will be completed digitally through the FDB’s online application portal accessible from the FDB’s website from Friday, 08 September 2023–which is www.fdb.com.fj

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