30+ years of SunRice monopoly ends

March 17, 2025 9:52 pm | Posted in Business News | Share now TwitterFacebook

By Doddy Morris.

SunRice (Ricegrowers Limited), the largest rice producer in the Southern Hemisphere, has appointed Tove Eats Ltd as its largest distributor across the six provinces of Vanuatu (excluding Port Vila and Santo, where SunRice has existing contracts with exclusive rights).

This new partnership is set to increase competition in the rice market while also improving food security and elevating local brand visibility across the archipelago.

“This partnership is a key step forward for the Vanuatu economy and demonstrates our commitment to providing affordable, high-quality rice to the people of Vanuatu,” said Casey Lee, SunRice Group’s Head of Pacific & NZ Retail/Foodservice. “SunRice has been in the local Vanuatu market for over 30 years, and we view this partnership as an exciting development that will enable greater reach and service, particularly in areas that have previously lacked focus.”

The Chief Executive Officer (CEO) of Tove Eats Ltd, Julian Ligo, stated: “This partnership breaks a long-standing monopoly, increasing competition and leading to better prices for consumers. It enhances food security by ensuring a consistent supply of premium rice across multiple provinces. We are committed to promoting local economic growth and creating jobs by improving access through our new Luganville centre. Our focus on high safety and quality standards will meet community expectations while diversifying Vanuatu’s economy and reducing dependency on established players.”

With Tove Eats Ltd now managing operations, this agreement marks a major turning point, challenging the dominance of previous distributors and paving the way for a more dynamic and competitive rice market in Vanuatu.

Under the agreement, Tove Eats Ltd will assume the role of ‘Official Appointed Distributor’ for SunRice, managing operations across six provinces. This partnership represents the largest agreement SunRice has secured in Vanuatu, marking a significant realignment in the market landscape.

For over 30 years, the rice market in Vanuatu has been predominantly controlled by supermarket giant Au Bon Marché (ABM), which holds exclusivity rights in Port Vila, and Wong Sze Sing, which has exclusivity rights in Santo. The success of ABM and Wong Sze Sing has been attributed to their monopoly on SunRice for over three decades. With Tove Eats Ltd entering the distribution ring, there is now a renewed focus on enhancing access to consumers across the country.

Tove Eats Ltd aims to broaden SunRice’s outreach and ensure a consistent supply of premium-quality rice to local communities. This initiative is expected to strengthen food security throughout the islands and may lead to more competitive pricing in the rice market.

The company has already opened its offices in Luganville to manage SunRice operations, providing dedicated support for businesses across all four northern provinces. The office will also stock rice on-site for immediate sales. Businesses in the northern region are encouraged to use Luganville as their primary point of contact, as it will be more cost-effective due to its proximity to the four northern provinces, saving on freight costs.

Tove Eats Ltd has already implemented its distribution strategy, awarding rights in TAFEA Province to Touaraken Shipping. Distribution rights for TORBA Province have been allocated to Atsin Mumeg, while Denilson Trading will manage operations in MALAMPA Province. The Luganville office will serve as the primary operation centre for rice distribution in the northern provinces, working alongside the main offices in Port Vila, which will oversee operations for SHEFA and TAFEA provinces. CEO Ligo invites businesses in these regions to explore partnership opportunities and welcomes any interested party to be part of this exciting initiative.

The first stocks are set to arrive in April 2025, and pre-sales are already underway, with over 8,000 tons purchased on orders. Tove Eats Ltd offers flexible purchasing options to all clients and invites businesses to discuss their requirements.

“The pricing structure is set to offer quality at fair prices,” says Ligo. “We need to provide both quality and affordability. We will be offering wholesale prices of VT2,600 for 25KG bags and VT1,950 for 18KG bags. We encourage all businesses to get in touch for pricing details. This is premium rice, not the third-grade rice purchased by the Ministry of Health last year.”