VT1 billion Value Addition Fund in place, but production gaps persist

July 9, 2025 10:19 pm | Posted in Business News | Share now TwitterFacebook

By Bruce Tamata.

As the government moves forward with its VT1 billion Value Addition Fund, attention is shifting from policy launch to implementation — particularly whether farmers and producers are ready to meet growing local and export demand.

The fund, managed by the Ministry of Trade and Commerce (MOTC), aims to help local producers upgrade their operations and meet international market standards. It will also support the development of pack houses across Vanuatu, starting with the Santo Pack House project, which officially broke ground last week.

Speaking at the ceremony, Prime Minister (PM) Jotham Napat described the Santo facility as a model for similar infrastructure planned for other islands. He noted that the fund is expected to help address quality and supply chain issues that often prevent local produce from reaching broader markets.

The PM also drew attention to rising local demand — particularly with upcoming projects such as the Lelepa Island cruise call, which is expected to attract around 5,000 visitors monthly. He said the government intends to limit the import of fresh produce for cruise operations, creating an opportunity for domestic suppliers.

However, PM Napat acknowledged that current production levels may not be able to meet these demands.

“The government must focus on implementation in both agriculture and tourism. We’ve invested heavily in tourism, but during the COVID-19 period, we saw that agriculture is the backbone of the economy,” he said.

Minister of Trade and Commerce Samson Samsen signed the regulations order under the Industrial Development Act of 2014, enabling disbursement of the VT1 billion fund. The fund is open to interested individuals or businesses across Vanuatu and is designed to support local producers through the value-adding process — from harvesting to packaging — to meet both export and domestic market standards.

Minister of Finance and Deputy PM Johnny Koanapo said the fund aligns with broader government efforts to keep more value from agricultural exports within the country.

He also confirmed that plans are underway to ban the export of raw copra, as more local businesses now extract coconut oil for domestic use and value-added products. He said this shift would help ensure greater returns for producers and the national economy.