Australia-based kava importer demands Gov’t subsidy

February 10, 2026 9:43 pm | Posted in Business News | Share now TwitterFacebook

By Hilaire Bule.

A Ni-Vanuatu kava importer in Australia says Vanuatu kava is struggling to compete with cheaper, government-subsidised products from Fiji and Tonga, and has called on the Vanuatu Government to provide subsidies to importers to level the playing field.

The importer, who asked not to be named, said Vanuatu kava sells at a higher price because kava from the two countries is subsidised by their respective governments.

He said one kilo of Vanuatu kava costs about VT20,000 in Australia, and the price could be lower if importers received support from the Vanuatu Government.

He added that running a kava business in Australia is costly, but importers continue to operate to support farmers in Vanuatu.

The importer said Vanuatu kava has reached its current standing in Australia largely through the efforts of importers who promoted and marketed the product without government backing.

He acknowledged that some exporters receive government assistance to cover materials and equipment, but this is not reflected in the current price of kava.

He suggested that the government should consider directing subsidies to importers rather than to exporters or agents.

“As an importer, I pay farmers for the kava, cover airfreight costs, and pay Australian taxes,” he said.

The importer said he has been in the country since last week to ship six tonnes of kava, with airfreight costs totalling VT1.5 million.

He added that as kava becomes a major source of income for island communities, more support should reach farmers. He said that since the kava trade began in the early 1980s, the sector has not received government assistance similar to copra and cocoa, where zoning allowances are paid to ship owners.

He added that growth in the kava trade in Port Vila and overseas markets such as New Caledonia, the United States, and Australia has come largely through farmers’ own marketing efforts.

The late Charlot Longwah, owner of Kava Store in Port Vila, was the first to commercialise Vanuatu’s traditional drink in the early 1980s.

The importer said the industry has moved through various stages of development, and it is now time for Vanuatu to move away from exporting raw kava and focus on value-added products.

Annual export value exceeds VT6 million, and the price of dried kava in the islands now ranges between VT2,500 and VT3,000 per kilo.

With demand rising locally and internationally, the Ministry of Agriculture is running awareness programmes encouraging farmers to plant 10 million kava plants by 2030.