Contract farming will be the next bandwagon for Solomon islands agricultural producers to access markets, capital and increased productivity.
The Permanent Secretary of the Ministry of Agriculture and Livestock Jimmy Saelea made this sounding at the opening of a FAO sponsored contract farming planning workshop for nationals in Honiara this week.
The workshop is organized by FAO Sub Regional Office for the Pacific Islands in collaboration with the Ministry of Agriculture and Livestock, MAL, for farmers, buyers, processors and exporters of agricultural commodities.
Contract Farming is an approach that links up smallholders with buyers or traders to trade a specific commodity guided by a legal contract agreement.
MAL Permanent Secretary Jimi Saelea told the participants that Contract Farming is a proven, workable mechanism for the coordination of transactions in agri-food supply chains.
“It is also a tool to promote the access of smallholder farmers to markets.”
“Through Contract Farming, local farmers and food processors could improve the efficiency of their operations and thus contribute to increase the share of domestic markets for fresh and processed fruits and vegetables, coconut, cocoa, meat, and staple foods, and could help in import substitution and food self-sufficiency,” he said.
The workshop, the first of its kind to be hosted in the country according to the MAL Permanent Secretary is a very timely intervention, when the country is faced with so many challenges, one of which is increasing agriculture production for both domestic and export markets.
Moreover Saelea said there would not have been a better time than this to have this workshop, as the opportunities for Solomon Islands to enter the export markets in a serious way, now becoming a reality where new commodities are being targeted to new markets.
“I believe Contract Farming can solve Solomon Islands low productivity to supply food commodities for the domestic markets.
“Similarly the export markets especially the niche markets for cocoa, coconut oil, ngali-nut, kava, coffee, cassava, and other products would have a better success rate under the Contract Farming mechanism.”
“Contract Farming therefore has a lot to offer for Solomon Islands smallholder farmers and producers together with the buyer-exporters.”
The Permanent Secretary added that if the agriculture sector is expected to drive the economy, mechanisms such as Contract Farming together with reliable market infrastructure, reasonable freight charges, and access to finance are essential ingredients for a healthy export base expansion and economic growth.
“I on behalf of the Hon. Minister for Agriculture and Livestock and SI government, thank FAO SAP especially Shukrulah and the team of the Sub-regional Office in Apia Samoa for funding and facilitating the workshop, the local organisers and workshop participants for making the workshop a reality.”
