Vanuatu 

INVESTMENT PRESENTATION

THE PROPOSAL

Vanuatu's long-term planning framework, Vanuatu 2030 – the People's Plan, places agriculture and industry at the core of its development journey. The vision aims to increase sustainable agricultural and fisheries food production to ensure affordable and nutritious food access. These government priorities align closely with the principles of the Hand-in-Hand Initiative (HiH), which seeks to eradicate poverty, end hunger and malnutrition, and reduce inequalities through a market-based approach.

In line with the strategic policies of the Ministry of Trade and the Ministry of Agriculture, the Hand-in-Hand initiative supports the development of value chains for root crops and cacao. These value chains offer sufficient scale to attract both local and international market-based investments.

The HiH Initiative project for Vanuatu includes the following components:
1. Working with primary farmers to enhance their capabilities and achieve higher production levels.
2. Investing in supporting infrastructure, including the establishment of containerized inter-island shipping services.
3. Stimulating local demand for food products, particularly in the hospitality and education sectors.
4. Collaborating with exporters and value-adding enterprises to address export bottlenecks.
Through these efforts, the HiH Initiative aims to drive sustainable economic growth and foster a thriving agricultural and fisheries sector in Vanuatu.

Poverty

Potential

Efficiency

COMMODITIES AND INTERVENTIONS

Specialty Cacao

Cocoa has long been a significant export crop for Vanuatu. The primary processing of cocoa takes place near the areas where it is harvested. Globally, 90% of cacao is grown by smallholder farmers, and in Vanuatu, this makes cocoa an appealing commodity for generating employment and income in the outer islands. Currently, the majority of Vanuatu's cocoa is exported to bulk grinding markets.
To reverse this trend, the project aims to collaborate with local chocolate manufacturers and transition Vanuatu towards producing high-paying specialty cacao varieties. This shift will result in an increase in the purchasing price paid for cacao beans, raising it from Vt35/kg to Vt55/kg. With the availability of large plantations, this transformation can be accomplished at scale while actively involving local communities in agricultural activities. Moreover, cacao thrives when intercropped, making it an ideal option for sustainable cultivation. Ongoing research programs at the Vanuatu Agriculture Research Center have resulted in published academic literature on cacao hybrids.
The project will primarily focus on the following:
a) Rejuvenating cacao plantations and rehabilitating aging orchards.
b) Providing training and skills development for cacao farmers, covering aspects such as land management and post-harvest processing.
c) Investing in a centralized fermentation operation.

By implementing these measures, the project aims to revitalize the cacao industry in Vanuatu, empowering farmers, improving quality, and enabling sustainable growth in the specialty cacao value chain.

Root crops value chain

Root crops hold a significant place in traditional cuisine across the Pacific region, thanks to their resilience against tropical pests and cyclones. However, in modern times, these nutritious crops have been overshadowed by highly processed carbohydrates such as rice, noodles, flour, and sugar. This dietary shift has led to the displacement of traditional foods and an alarming rise in non-communicable diseases (NCDs) like diabetes and hypertension.
The government has recognized the importance of addressing this issue and has embarked on a mission to promote root crops, starting with their inclusion in school meals. In recent years, private-sector driven progress has been made to develop the value chain, including the establishment of a peeling and packaging processing plant at Port Vila wharf, as well as the development of export pathways facilitated by Biosecurity measures.

Building upon these achievements, the program aims to focus on the following:

a) Strengthening harvest management facilities in the highly productive outer islands, ensuring efficient and effective collection and storage of root crops.
b) Replicating processing facilities, like the one in Port Vila, on other main islands such as Santo and Tanna, to enhance value addition and market opportunities.
c) Developing a local market for root crops by making ready-to-eat root crop products more readily available.
By implementing these measures, the program aims to strengthen the root crop sector, improve harvest management, expand processing capabilities, and foster a local market demand for convenient root crop products. This comprehensive approach will contribute to the revival of traditional food practices, promote healthier diets, and address the prevalence of NCDs in the region.

See the investment plan slide deck presentation from Vanuatu for IF 2023.