Mr Cokanasiga - Official opening of the new Milk Collection Centre
Jun 26, 2008, 16:19

Mr. Joketani Cokanasiga
Minister for Primary Industries

REMARKS – OFFICIAL OPENING OF THE NEW MILK COLLECTION CENTRE
BUREBASAGA, REWA AT 9.30AM – THURSDAY, 26 JUNE, 2008


The Chairman and members of the Duavata Dairy Farmers Association;
The Chairman, Directors and Chief Executive Officer of Rewa Co-operative Dairy Company Limited;
The Acting Permanent Secretary for Agriculture and Ministry officials;
Stakeholders, friends, ladies and gentlemen:

I am delighted and indeed honoured to have been invited to join you all this morning to officiate at the commissioning of this Milk Collection Centre here at Burebasaga.

That this is the first such facility to have been installed on Burebasaga soil, makes the occasion an even happier one for me, not only as Minister for Agriculture, but also as one who hails from the Matanitu Vanua ko Burebasaga.

At the outset I would also like to take this opportunity to thank the organizers for the traditional ceremonies of welcome accorded to me. Again I am exceedingly humbled to have been extended this high honour.

Ladies and gentlemen, we are all aware that, agriculture plays and will continue to play an important role in the economic development of our nation. The agriculture sector contributes an average of 15% to Gross Domestic Product and is a major contributor to employment creation, economic development, food security and to foreign exchange earnings.
Dairy production in Fiji is broadly classified into two major categories, namely the (1) formal sector, which comprise farmers who supply milk and cream to Rewa Co-operative Dairy Company Limited and the (2) informal sector, which comprise fresh milk producers who supply urban dwellers (for home consumption), farm use and production of value adding milk by-products.

In terms of number, there are 285 registered dairy farmers in Fiji of whom 226 make up the formal sector (whole milk suppliers who supply milk to Rewa Co-operative Dairy Company Limited) while 59 make up the informal sector [fresh milk producers that supply urban dwellers (for home consumption), farm use and production of value adding milk by-products].

The milk demand in Fiji stands at more than 80 million litres per year. Of this quantity Rewa Co-operative Dairy Company

Limited alone requires 74 million litres to meet the demand of its customers and yet statistics show that it receives only 11 million litres per year from its bulk suppliers who make up the formal sector.
This means that Rewa Co-operative Dairy Company Limited imports at least 63 million litres of milk annually in order to meet the demand of its customers. But there are other importers of milk besides RCDC and this explains the Fiji milk demand of more than 80 million litres I quoted earlier.

But as Rewa Co-operative Dairy Company Limited will no doubt vouch, the production from its bulk suppliers have continued to decline in recent years.

This has been due mainly to land tenure problems. But there are other problems such as the need for the right breed for dairy, the need for improved nutrition, the need to develop


local feed ingredient as a source for supplementary feed and improvement in infrastructure.

In efforts to address these problems, the Interim Government with the input and encouragement of the dairy industry stakeholders, has pursued a number of initiatives this year under the Dairy Industry Support (DIS) program with an approved funding of $750,000. The focus of this program is largely on improving milk quality and increasing quantity through various initiatives such as:
ß Improved genetics;
ß Improved nutrition such as pastures and fodder bank;
ß Research on local feed ingredient as sources of supplementary feeds, focusing on establishing a cost-effective ration formulation;
ß Milk marketing; and
ß Improvement in infrastructure such as the construction of milk collection centres to create incentives to farmers.

While I note that some of these initiatives may not have been easily visible, I can assure you ladies and gentlemen that the process has already started and it is only a matter of time before assistance under these initiatives reach the intended beneficiaries, you the farmers.

However, please allow me just to mention a few. On the issue of improved genetics, discussions with Dairy Farms Fiji Limited for the administration of Artificial Insemination (AI) program where identified herds will be impregnated with the AI program, are in an advanced stage. This will bring about immediate impact in terms of increased production.

I am also aware of difficulties faced by some farmers in Naitasiri on poor road conditions but I have been informed that the funding allocation for this activity is already with the Office of the Commissioner Central which co-ordinates Government programs in the Division.

On the issue surrounding the uncertainty of renewal of dairy leases, I would just like to say that according to NLTB all dairy leases fall under the ALTA legislation. The Interim Government earlier this year through Cabinet approved the raising of the UCV on ALTA lease rentals from 6% to 10%, and has also agreed to subsidize rental payment on all ALTA leases for the next five years commencing from 1st July this year. In this regard the Interim Government has committed $8.0 million for the payment of rental subsidy under this initiative, which will benefit both the landowners and the tenants.

Already the four Taskforce Teams of the Committee on Better Utilization of Land (CBUL) since May this year have commenced the public relations exercise of informing landowners of ALTA leases of this Government assistance, with the ultimate objective that the landowners are adequately briefed so that they could make informed decisions and extend expiring ALTA leases and also make available for productive use any unused land.

Ladies and gentlemen, in addition to this $750,000 funding for the dairy industry, I will be issuing a Ministerial directive to the Coconut Industry Development Authority (CIDA) to sell coconut meal to RCDC at $13/40kg bag for a period of six (6) months after which it shall be reviewed. This decision has been arrived at following representations from RCDC that the dairy farmers cannot afford the $21/40kg bag (cost plus freight) which is the current cost.

Ladies and gentlemen, the Milk Collection Centre we are commissioning today is yet another tangible illustration of the responsive and caring attitude of the Interim Government. It will cater for the 300 litres of milk per day produced by the 9 dairy farmers around this area. It is projected that the number of farmers will increase to 20 and production increase from 300 litres per day to 600 litres per day. This milk collection facility can hold up to more than 1,700 litres of milk in a day.

Its establishment would no doubt create incentive for potential farmers in the area and in Tailevu South to go into dairy farming thereby helping to raise milk production which is one of the long term objectives of the Interim Government.

The Director, Animal Health & Production Division had already provided some details when he presented his overview earlier this morning.

To conclude I would like to encourage the existing dairy farmers to continue to strive to increase production and potential dairy farmers to enter the industry and make good use of this facility.

I also take this opportunity to thank the Landowning Mataqali who made available this piece of land on which this facility sits, and I pray that you will continue to support this initiative in future and give it a long term lease if need be.

On that note, Ladies and gentlemen, I have much pleasure in declaring that the Burebasaga Milk Collection Centre in now duly commissioned.

Vinaka Vakalevu.

END