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Cruise Tourism Partnership

MEDIA RELEASE – For immediate release 5 November, 2019

The Fiji Navy in partnership with the Australian government funded Market Development Facility (MDF) and Kenua Fiji officially handed over the hydrographic survey results of the Yasawa-i-rara island anchorage today.

The Australian High Commissioner to Fiji, John Feakes, and Kenua Fiji National Operations Manager, Bradley Bower, officiated the handover of the data received from the acting Chief of Navy Captain, Marika Vosawale.

MDF supported a new Public-Private-Partnership (PPP) between Fiji Navy (responsible for hydrographic mapping in Fiji) and Kenua Fiji, the largest local cruise-ship agent in Fiji, to undertake the hydrographic mapping for the Yasawa-i-rara region, which will facilitate the return of cruise ships to this remote region at the northern tip of the Yasawa islands group.

Australian High Commissioner to Fiji, John Feakes, said Australian Government, through MDF, was pleased to be able to broker this innovative partnership between the Fiji Navy and Kenua. “These new maps will unlock economic activity for remote communities in the Northern Yasawas. Supporting tourism activity across the Fiji islands is a priority for the Fiji Government and I am pleased Australia’s aid program is able to support this in tangible ways.”

The hydrographic survey was undertaken over a three-week period in August this year. The ocean depth data gathered will be used in updating the nautical maps to the required magnification to allow for the safe passage of cruise ships and larger vessels.

MDF Fiji Country Director, Victoria Carter, said MDF has been seeking to support the Fijian Government’s 2021 Tourism Development Plan in several areas, including the development of improved nautical charts with the aim of growing nautical tourism in Fiji. “We are proud to have supported this PPP model which has successfully unlocked Yasawa-i-rara as a cruise ship destination and we look forward to other potential island destinations being mapped to promote more geographic inclusion and livelihood opportunities for cruise tourism in Fiji”.

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Danam (Fiji) Limited

Danam competes in lucrative garments segment through staff upskilling.

MDF supported Danam (Fiji) Limited to diversify production of new certified structural firefighting garments. This involved engaging technical personnel to provide specialised training to ensure operational processes meet customer standards and to enhance staff productivity.

Danam (Fiji) Limited is a large garment manufacturer and exporter that specialises in woven apparel. The company manufactures clothing for some well-known brands such as Harley Davidson, RM Williams and Rodd & Gunn Jeans for the Australian and New Zealand markets. The company has been in operation since 1986 and is based in Lautoka, Fiji. The company employs around 580 workers of which 80% are women.

The members of the Textile, Clothing and Footwear (TCF) industry in Fiji manufacture a diverse range of garments from sports apparel to ready-made formal wear. Fiji enjoys a comparative advantage of short orders with quick turn-around time for garment exports to Australia and New Zealand. In addition, Fijian garment manufacturers also have a competitive advantage of manufacturing niche garments – such as specialised uniforms. This line of work focuses more on quality than on cost competition, bringing in better margins. To maintain this advantage, garment companies in Fiji have had to invest heavily in equipment and in the training of staff.

Danam is the first company in Fiji to diversify into manufacturing certified specialised structural firefighting clothing. Given their previous experience in making specialised garments they were able to secure a three-year contract with an Australian buyer. This has created new employment opportunities at the factory for women and men in the wider western division where formal jobs for those with limited skills and are in short supply.

In Fiji, garment factories provide basic entry-level training to staff during recruitment, which is rarely supplemented. Manufacturing niche garments requires a high degree of skill and specialist training however; as some factories had not invested in the necessary training, they had been unable to compete and had closed down. While Danam was well- placed to take advantage of the higher profit potential available in niche manufacturing, it needed support to ensure that its products would maintain the high standards required from its Australian buyer.

MDF supported Danam to engage a qualified garment specialist to train local staff in producing high-quality certified firefighting equipment. As production times decreased and standards increased, turnaround times reduced and Danam improved its competitive advantage, as they can now produce two different types of firefighting suits. In turn, Danam were able to hire more workers and give existing workers more hours, translating into an increase in weekly wages for employees at the factory.

By tapping into this niche market and proving their commitment to quality, Danam was also able to secure clients in the retardant garments (electrical workwear garments) sector.

Industry insights suggest that based on Danam’s success, at least two other large garment manufacturing companies are considering adding firefighting garments to their portfolio in the western division of Fiji.

Charan Jeath Singh

Mechanisation addresses sugarcane labour shortages in Vanua Levu.

MDF supported Charan Jeath Singh to procure a suitable mechanical harvester in Labasa, Vanua Levu, to address the labour shortage of sugarcane harvesters.

Charan Jeath Singh (CJS) Group was founded over 20 years ago with the establishment of Gurbachan’s Foodtown Ltd supermarket in Labasa. Including a number of companies in its portfolio, the group has recently expanded into providing mechanical harvesting services to sugarcane farmers.

Historically, manual labour has been used to harvest sugarcane in Fiji. Labourers operate in ‘cane gangs’ who seek seasonal employment with farmers during the harvesting season. The number of labourers depends on each farmer’s expected tonnage.

Sugarcane farming households are generally made up of a male farmer who is heavily involved in the cultivating and harvesting activities, whilst his wife is actively involved in meal preparations for the labourers and the household.

As more young people migrate to urban areas in Viti Levu for better employment and education opportunities, labour is scarce.

Over the years, increasing costs for labour and farm maintenance have made sugarcane farming challenging and less profitable. This has resulted in sugarcane that is left un- harvested, in turn contributing to the industry not meeting its harvesting quota for the season.

Whilst mechanical harvesters had been previously introduced in Labasa in the mid 2000s, the venture was unsuccessful. The harvester model was unsuitable for farms in Vanua Levu as sugar is also planted on slopes and the lack of after-sale-services meant that machines were unable to be repaired, making them unsuable.

In order for CJS to successfully run the new mechanical harvester venture, an appropriate sugarcane harvester model with after-sale-service and maintenance was required.

MDF supported CJS to procure a suitable mechanical harvester with wheels – capable of harvesting sugarcane on slopes – for farms in Vanua Levu.

Click the button below to download the Stories for Significant Change on Charan Jeath Singh.

MDF Fiji Enterprise Engine

Creation of MDF Fiji Enterprise Engine helps Fijian MSMEs generate FJD1.2 million in additional revenue.

How learning key business skills and understanding local markets drives small and medium-sized businesses growth in Fiji.

In Fiji, MSMEs struggle to survive, largely due to a lack of knowledge regarding the processes involved in operating a business. This is due mainly to the internal challenges that they face in growing their businesses, where essential skills such as bookkeeping, business planning and relevant training are not well understood or practiced.

Previous incubation systems have attempted to address these issues via classroom training only, but have often failed to make the content of their support relevant to the Fijian issues or have been too generic in their delivery because MSMEs learn and adapt better out of the classroom.

Building on its experience working with MSMEs as part of its Market Systems Development (MSD) activities, MDF developed a pilot business acceleration program in 2016. Aptly named the Fiji Enterprise Engine (MFEE), it was created to provide a more effective way of supporting micro, small and medium enterprises (MSMEs) through an outcome-oriented program that can be managed and sustained by the private sector. MFEE was designed to help businesses focus on growth and develop their business skills and internal processes, it would work with MSMEs to move towards a sustainable and scalable business model that improves their chances of success in the Fijian economy and the region.

Most of the MSMEs in the program were family owned and operated. This sometimes- caused issues in decision-making and finances, where a lack of planning and vision setting saw the MSMEs having large plans with little to no help to achieving their goals. Other issues of a lack of market intelligence, marketing and branding, basic book keeping, and strategic planning – emerged as MFEE progressed.

MDF set about creating customised, hands-on learning programs suited to the specificities and peculiarities of MSMEs in their local context that would allow them to build on their current knowledge and provided new insights on business growth.

This was made possible through access to a group of experienced international and local business trainers, complemented by MDF’s rich sectoral knowledge base and through coordination with other stakeholders and peers in the business and regulatory environment, such as the Fiji Revenue and Customs Authority, Fiji National Provident Fund and financial institutions that offer business solutions; BSP, ANZ, Westpac, HFC and the Fiji Development Bank.

Click on the button below to continue reading MDF’s Stories of significant Change: MDF Fiji Enterprise Engine…

Labasa Farm Fresh

Connecting their way to export success

How Connecting Farmers with End Markets Increased Sales by 29%

MDF supported Labasa Farm Fresh (LFF) to expand its business and increase its horticulture export volumes through the procurement of a cooler room and freezer, strengthening backward linkages through a Field Manager, and strengthening and upskilling management capacity to better manage the business expansion.

Labasa Farm Fresh is the only major exporter of cultivated and non-cultivated crops that is permanently based in Labasa, on the island of Vanua Levu, Fiji’s second largest island. The company began operations in 2011 and exports crops to a family company in Australia.

Labasa, the largest town in Vanua Levu, is predominantly a sugar-cane growing town and hosts one of Fiji’s largest sugar mills at the Labasa Sugar Mill. Due to steady declines in global raw sugar prices, sugarcane farmers have had to look for alternative means of earning an income.

Farmers on Vanua Levu have limited access to end markets, so the incentive to expand horticulture production is limited. Additionally, prices at local markets can be low because the majority of households in Vanua Levu grow their own food, and supplying to local markets on Viti Levu is not feasible due to the high costs of transportation.

As such, the export market is the only viable end market through which farmers can gain consistently higher prices and that can absorb higher volumes.

MDF supported Labasa Farm Fresh with the procurement and installation of a cooler room and freezer, and helped them hire a Field Manager to strengthen backward linkages between LFF and their existing and new suppliers. The LFF team were also supported with strengthening and upskilling management capacity in order to better manage the business’s expansion. This enabled LFF to purchase more cultivated and non-cultivated crops from farmers.

By giving farming households the ability to make money throughout the year, farmers are now able to grow and sell a variety of crops to LFF – including crops such as breadfruit and jackfruit – which would otherwise rot in the fields.

This has resulted in the creation of more jobs and a more consistent inflow of money into households, as they are not dependent on one crop to earn an income. This has also directly benefitted women, as they are responsible for the management of non- cultivated produce.

Through Labasa Farm Fresh’s increased processing capacity, more male and female farmers are able to supply horticultural produce for export markets and are able to supply increased volumes – allowing them earn additional income.

Click on the button below to download the entire Stories of Significant Change: Labasa Farm Fresh article.

Charan Jeath Singh

Mechanisation addresses sugar cane shortages in Vanua Levu

MDF supported Charan Jeath Singh to procure a suitable mechanical harvester in Labasa, Vanua Levu, to address the labour shortage of sugarcane harvesters.

Charan Jeath Singh (CJS) Group was founded over 20 years ago with the establishment of Gurbachan’s Foodtown Ltd supermarket in Labasa. Including a number of companies in its portfolio, the group has recently expanded into providing mechanical harvesting services to sugarcane farmers.

Historically, manual labour has been used to harvest sugarcane in Fiji. Labourers operate in ‘cane gangs’ who seek seasonal employment with farmers during the harvesting season. The number of labourers depends on each farmer’s expected tonnage.

Sugarcane farming households are generally made up of a male farmer who is heavily involved in the cultivating and harvesting activities, whilst his wife is actively involved in meal preparations for the labourers and the household.

As more young people migrate to urban areas in Viti Levu for better employment and education opportunities, labour is scarce.

Over the years, increasing costs for labour and farm maintenance have made sugarcane farming challenging and less profitable. This has resulted in sugarcane that is left un- harvested, in turn contributing to the industry not meeting its harvesting quota for the season.

Whilst mechanical harvesters had been previously introduced in Labasa in the mid 2000s, the venture was unsuccessful. The harvester model was unsuitable for farms in Vanua Levu as sugar is also planted on slopes and the lack of after-sale-services meant that machines were unable to be repaired, making them unsuable.

In order for CJS to successfully run the new mechanical harvester venture, an appropriate sugarcane harvester model with after-sale-service and maintenance was required.

MDF supported CJS to procure a suitable mechanical harvester with wheels – capable of harvesting sugarcane on slopes – for farms in Vanua Levu.

Click on the button below to download the complete Stories of Significant Change: Charan Jeath Singh

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