The Proposal

Samoa's agriculture sector is a cornerstone of the country's economy, providing livelihoods for a significant portion of the population, contributing to food security, nutrition, and supporting rural communities. The sector primarily consists of smallholder farms focused on crops such as taro, coconut, bananas, and cocoa, along with livestock like pigs and poultry. Agriculture accounts for around 11% of Samoa's GDP and employs 30% of the workforce. Key exports include coconut products, taro, and cocoa, although the sector has faced challenges in recent years due to limited product diversification, unavailability of modern post-harvest processing facilities, climate-related shocks, pests, market fluctuations and inaccessibility to premium export destinations.

Investment in Samoa’s agriculture sector is crucial for improving productivity, promoting food security, nutrition and livelihood security, and increasing resilience to climate change. Key areas for investment include sustainable agricultural practices, improved varieties, modern farming technologies, agro-processing and storage facilities, market linkage, and value chain development to enhance market access as well as agricultural sector transformation. There has been growing interest in organic farming, leveraging Samoa’s clean environment to cater to niche markets globally.

Additionally, investments in climate resilient infrastructure, irrigation systems, quality extension services, early warning and crop advisories, and rural development are essential for modernizing the sector. The Samoan government, along with international donors and development partners including the Food and Agriculture Organization of the United Nations (FAO) are playing a significant role in promoting agricultural investments, supporting smallholder farmers, and improving climate adaptation measures. Sustainable agribusiness, agro-tourism, agro-forestry, nature-positive production and renewable energy integration also offer potential for boosting growth in Samoa's agricultural sector. 
Under the Hand in Hand Initiative (HIH), Government of Samoa along with FAO intends to better target investment for poverty reduction by sustainably increasing household income, and enhance the productivity and competitiveness of priority investment area , build climate resilience, engage private sector and enhance product diversification and market access. Additionally, Samoa’s key development plans, such as the Pathway for the Development of Samoa (2021/22-2025/26), Samoa Food Systems Pathway 2030, and the Agriculture and Fisheries Sector Plan (2023-2027) prioritize the transformation of agriculture and food systems, enhancing climate resilience, strengthening market linkages, and promoting rural development which align closely with the goals of the FAO’s HIH.

Priority value chains for investment 
Investment in key priority areas  is crucial for enhancing the efficiency, sustainability, and profitability of Samoan agricultural sector. Better targeted value chain investments will help improve productivity by addressing bottlenecks such as low productivity, inefficient processing technologies, limited access to markets, and export barriers. Cocoa, Coconut and Taro crop value chains were prioritized for investment to promote modern farming and processing technologies, improve product quality, and meet international standards, thus accessing premium markets. The table 1 illustrates the attractive return on investment in these crop value chains which will create job opportunities, enhance income for smallholder farmers, and foster economic development in Samoa.

Strengthening the linkages between different stages of production, from raw material sourcing to final product distribution, and investments in Cocoa, Coconut and Taro value chains would ensure a more resilient and competitive economy, which in turn will aid in the alleviation of poverty and promotion of food security in Samoa. Below is a brief summary of the business plans and profitability analysis. 

Samoa Typologies

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Government of Samoa: Investment cases in Samoa

Samoa Investment Cases and Interventions

Coconut is very popular in Samoa. 67% of all households in Samoa grow Coconuts mostly for consumption. A few farmers sell at market and for export. Approximately 37% of coconut trees are senile. Total land area planted with coconuts spans 20,153 hectares, mostly around coastal and low-lying areas. Government has implemented two replanting schemes through two Stimulus Package Programs as well as Intercropping and Livestock Integration programs to rehabilitate senile trees and grow coconut production. In Samoa, 3 large-scale Coconut farms are organically certified for virgin coconut. The total proposed investment for Coconut is USD 5.2 million that would yield an IRR of 21.5 percent. The NPV is estimated to be USD 29.35 million, and the total direct and indirect beneficiaries are estimated to be 7,500 and 49,500 respectively. It is anticipated that the annual increase in household income from this investment would be USD 3,913. oil processors.

On average, approximately 4 tonnes of Coconut is sold at local markets monthly. Copra meal is used for Coconut oil production and for livestock feed. Coconut water from immature nuts is enjoyed by locals and tourists. In 2023, approx. 711 tonnes of copra, valued at USD210,000 USD, were exported overseas to New Zealand, USA and Cook Islands. NZ accounts for 51% while USA accounts for 48% of the copra export market. Coconut value-added products are mainly exported to New Zealand, USA, Australia, Japan and Europe.

Cocoa 9.96 Million USD 36,480 Beneficiaries

Samoa’s agro-climatic condition is favorable for Cocoa production. 56% of all households in Samoa are involved in growing Cocoa. Most of Samoa's Cocoa is used and sold domestically as cocoa paste, for a national drink called “Koko Samoa.” Samoan Trinitario variety is known for its high-quality, fine flavor characteristics, ideal for high-end chocolate products (offering premium quality and flavor). Samoa’s cocoa is exported to two major chocolate manufacturers in New Zealand, Devonport Chocolates and Whittaker Chocolates. More than 200 organic cocoa farms are currently operating in Samoa and has greater prospects for scaling out. 

A small cup of Cocoa paste sells for USD10-USD20 WST.  Local chocolate manufacturer, Wilex Samoa, produces the KoKo Loa chocolate brand, sold domestically and exported overseas. In 2023, a total of 13.2 tonnes of Cocoa value-added products, valued at USD35,000, were exported overseas to New Zealand, American Samoa/USA, and Australia, in that order.

New Zealand accounts for 85% of the cocoa export market. The total proposed investment for Cocoa is USD 9.96 million that would yield a high internal rate of return (IRR) of 23 percent. The net present value (NPV) is estimated to be
USD 9.92 million, and the total direct and indirect beneficiaries are estimated to be 4,800 and 31,680 respectively. It is anticipated that the annual increase in household income from this investment would be USD 2,066. 

Taro 7.98 Million USD 45,600 Beneficiaries

Samoa has 18,320 Taro growers, with an estimated 800 supplying the export market. Taro is Samoa’s staple food and provides a strong income-earning opportunity in the domestic market. Taro is grown throughout Samoa, with the bulk of the export crop produced on the island of Savai’i. Samoa has a central packing facility for processing Taro and other commodities for export. There are 5 commercial/private pack houses in Samoa for processing Taro for export. Samoa has good transport infrastructure and lower internal transport costs but face higher international shipping charges. 
Approx. 7-8 tonnes of Taro are sold at local markets monthly. Strong local consumption and high domestic sales of Taro and Taro value-added products (e.g., Taro chips). In 2023, approx. 720 tonnes of Taro, valued at USD1.5 million, were exported overseas to New Zealand, USA, American Samoa, Australia and Tokelau. NZ accounts for 51% while American Samoa accounts for 36% of the Taro export market. Currently, biosecurity export pathways in place to increase Taro exports into Australia and New Zealand.

The total proposed investment for Taro is USD 7.98 million that would yield an IRR of 20.9 percent. The NPV is estimated to be USD 11.22 million, and the total direct and indirect beneficiaries are estimated to be 6,000 and 39,600 respectively. The average expected income increase through these investments would be approximately USD 1,870 for each beneficiary.

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