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Food in Fiji: the Produce and Processed Foods Distribution Systems

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Food in Fiji: the Produce and Processed Foods Distribution Systems The Australian Monograph no. 22 Notional University Development Studies Centre and The University of the South Pacific Centre Food in Fiji: the for Applied Studies in Development produce and processed foods distribution systems Michael W.P. Baxter Food in Fiji This monograph , plus two others , is a joint publication of The Un iversity of the South Pacific 's Cen tre for Applied Studies in Development and The Australian National Un iver­ sity ' s Development Studies Centre. The research on which this monograph is based was ftmded by the International Development Research Centre (IDRC) through a grant to The University of the South Pacific (USP) and the volume is published with the support of the IDRC . ii Development StudiesCentre Monograph no. 22 Food in Fiji: The produce and processed foods distribution systems Michael W.P. Baxter This monograph is published in association with the Centre for Applied Studies in Development, Universityof the South Pacific, Suva, Fiji. Series editor Gavin W. Jones The Australian National University Canberra 1980 © Michael Baxter 1980 This work is copyright. Apart from any fair dealing for the purpose of private study, research, criticism or review, as permitted under the Copyright Act, no part may be -reproduced by any process without written permission. Inquiries may be made to the publisher. National Library of Australia Cataloguing-in-publication entry Baxter, Michael W .P. Food in Fiji. {Development Studies Centre monograph; no 22 )· iSBN 0 909150 03 6 1. Food Industry and Trade - Fiji. I. Title. (Series: Australian National University, Canberra. Development Studies Centre. Monograph; no. 22 ISSN 0157-5767) 338.4'76413'0099611 Printed and manufactured in Australia by The Australian National University Sunnnary Foodstuff imports, the involvement of racial groups - Fijians, Indians, Chinese and Europeans - in conunerce, and government policy affecting both these areas are basic concerns of this analysis of Fiji's food distribution system. Food consumption habits in Fiji are the product of historic trends and cultural bias as well as economic rationalization. Save by a ban on imports, food imports cannot be decreased tmless these factors are taken into accotmt. The food distribution system has two discrete parts - one for produce and the other for processed foods. Produce enters connnercial trade through either public urban retail markets or the government wholesale/retail National Marketing Authority. There is little vertical trade development. Markets are patronized by connnercial and subsistence producer-vendors and also by non-producer vendors. The NMA was established in 1971, largely to increase efficiency of the internal produce market; in fact it has had limited success in breaking into the internal market and has concentrated on foodstuff exports. Fijians, Indians and Chinese participate in produce production and marketing and each has a distinctive role. Fijian participation in marketing is increasing, especially as non-producer vendors. Selling in markets is an effective connnercial training grotmd for Fijians as it overcomes key handicaps to their involvement in connnerce. The processed food distribution system has few entry restrictions and there are many participants, especially at the retail level. It is generally under-capitalized and is a back-order system. There is little government regulation, except of prices, although these controls have the additional objective of influencing the structure of the trading system. Racial involvement is as varied as in the produce trade. Importing and wholesaling is handled largely by Europeans, Chinese and Indians. Fijians are deeply involved in retail­ ing: about 30 per cent of retail outlets are operated by Fijian individuals� (An additional 20 per cent are operated by Fijian co-operative societies.) The government has a v vi number of schemes to promote Fijian involvement in commerce in general and in the processed food trade in particular but these do not overcome the spatial and cultural disad­ vantages facing Fijians. Ways are suggested to increase the efficiency of both the produce and processed food systems and to gain in them more equitable racial participation. Pref ace The Pacific Towns and Rural-urban Distribution Systems Project is a two-year applied research and training program based at the University of the South Pacific, Suva, Fij i. With funds from the Internat ional Development Research Centre of Ottawa, Canada, the University of the South Pacific appointed two research fellows and three assistants to investigate four questions : (a) What are the existing distribution systems operating within towns and linking towns to rural areas ? (b) What is the economic role of in digenous and non­ indigenous peoples in these systems ? (c) What are the current governmen t policies towards indigenous involvement in the distribution systems . and do government attitudes or regulations restrict such involvement? (d) What are the developmental implications of govern­ ment policies regarding the increased participation of indigenous groups in the distribut ion systems ? Research was conducted in Fij i and in Tonga from August 1975: the Director of research in Fij i was Michael Baxter and the Director in Tonga was Epeli Hau'ofa. A similar but independent study in the New Hebrides was conducted by Pro­ fessor R. G. Ward and others of the Australian. Nat ional Un i­ versity. The findings of each country study will be released separately . Research in the three study countries was con­ ducted independently , although it focused on a similar 'basic problem' core. In all areas , attention was confined to the internal distribution systems of produce and processed foods . Animal products and seafoods largely have been untouched. The approach adopted in Fij i was that research priority should be given to establishing a body of basic data on commercial food distribution that would serve as a source of informat ion for decision-makers. Some implications of the analysis of data are noted and recommendations are made that could solve fundamental problems in the system, but vii viii detailed 'solut ions ' have been left largely to decision­ makers . Such an approach was adopted for three reasons. First, a 'data base' on food distribut ion is a key to economic planning. We have not attempted to provide exhaustive data on any aspect of the system, but have tried to suggest the depth of data that is readily available an d which is a pre­ requisite for sound planning. Second, attention was concen­ trated on the broad structure of the distribut ion system because efforts to 'imp rove ' marketing systems often falter when attention is focused on specific local problems without the benefit of a perspective on the total system. The successful solution of specific problems depends on an appreciation of the fundamental structure and processes of the system and the attitudes and motivation of participants. Third , as well as on an appreciation of the system's structure , successful resolution of shortcomings in the distribution system is contingent upon decis ion-makers and researchers having common obj ectives . The conclusions of this study touch upon very basic issues such as racial participation in connnerce, ownership of and access to resources, the role of overseas capital and ownership in connnerce, and the degree of government involvement in the economy . The conclus ions highlight possible alternatives in the context of these basic issues . More detailed solutions can be developed once the nature and extent of desired change are known . The consequences of this approach are apparent in the structure of this report. Following a first chapter that puts the present food supply situation in to perspective , attention focuses in turn on the produce and processed foods distribution systems , an easily-made distinction as there is practically no overlap in items handled by each system, although the business organizat ion of each, as well as racial involvement in them, have much in connnon . Results of the study were originally published by the Un iversity of the South Pacific under the same title in September 1977. That report was quickly put together as a discussion paper for a post-study conference of researchers and decision-makers , which was held in Suva in Decemb er 1978. When it was apparent that the report would be republished, it was rewritten and polished to remove some of the roughness ix which had been included in order to provoke discussion at the conference . The arguments, conclus ions and the time context (i.e. the 'present' is 1976-77) of this version are essentially the same as the first draft : it is hoped, however, that the path to them is smoother. Michael Baxter Acknowledgments The research for this report has depended on the assistance of a number of in stitutions and many people. The Internat ional Development Research Centre of Ottawa , Canada, made available generous ftmds for the project and its representative showed a keen and continuing in terest in our work. IDRC concern was particularly helpful in over­ coming some administrative problems an d in stressing the combined research and training obj ectives of the proj ect . Particular acknowledgement is made of assistance given by Dr Jacques Amyot, Regional Liaison Officer for the Social Sciences, IDRC , Singapore; Dr Cros Walsh , former Head of Geography at the University of the South Pacific; Mr Derek Medford, Director of the Centre for Applied Studies in Development, Un iversity of the South Pacific; and Professor R. G. Ward and Dr T.G. McGee, Department of Human Geography , Re search School of Pacific Studies, the Australian National University , who are working on a similar study in the New Hebrides and co-ordinated research in the three study cotmtries of the Distribution Systems Proj ect . Grateful thanks are extended to the numerous government officers and private businessmen in Fiji, not to mention the several thousand patient market vendors and customers , shop owners and customers, farmers, produce transporters an d grocery importers and wh olesalers who were contacted, generally for formal interview.
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