Press Release Detail

STATEMENT

KALAVETI VODO RAVU

Hon. Ravu made the Statement in Parliament on April 3, 2023, in response to an oral question by Hon. Alitia Bainivalu to update the Parliament on the Strategic Framework for Sandalwood Research and Development.

Mr. Speaker Sir a very good morning to you, to the Honourable Prime Minister, the Honourable Deputy Prime Ministers, the Honourable Leader of Opposition, fellow Colleagues of this august House, ladies and gentlemen listening from the public gallery and members of the public watching the livestream from the comfort of their homes.

Mr. Speaker Sir, thank you very much for the opportunity to deliver this statement on Fijis proposed sandalwood industry development strategy. The strategy provides Fiji’s plans for the development of a forest product which has a lot of history and sentimental value for the people of Fiji.

This statement unpacks key actions implemented by the Forestry Ministry, collaboration efforts with partners in development, resources injected to develop the sandalwood industry and areas that is still needing attention to fully realise optimal returns from the sandalwood industry.

Mr. Speaker, Sir sandalwood is not a new commodity in Fiji. As we all know, Sandalwood is the pioneer commodity traded in Fiji, unfortunately it has not been utilized to its full potential. The history of sandalwood and its current potential and market demand calls for its revitalization as a forest commodity.

Mr. Speaker Sir, this is the silver lining in the forestry sector apart from Pine and Mahogany that will propel the sector, benefit the community and supports national economic recovery.

Mr. Speaker Sir, allow me to elaborate on the Ministry’s priorities within the next few years.

Firstly, the Ministry will continue to strengthen its capacity to support [through government funding], community based nurseries to ensure consistent and abundance seed supply for the establishment of new yasi farms.

Mr. Speaker Sir, presently the Forestry Ministry has also established community-based nurseries and assisted interested communities across Fiji on Sandalwood seed technology and nursery operations.

Sandalwood is one of the species supported in the "Thirty Million Tree" Planting Initiative with the aim of increasing local sandalwood resources, for large scale planting that can sustain a Sandalwood Industry in Fiji.

Mr. Speaker Sir, apart from natural sources, it is estimated that there is around 500 hectares of planted sandalwood in Fiji. To this date, there is close to 1,500 recorded sandalwood growers that have planted more than 200,000 sandalwood trees in these 500 hectares.

Mr. Speaker, Sir, as mentioned in my Maiden speech, the Coalition Government will ensure survival and growth and not just ticking the box of achieving the targeted number. Focusing on the number alone was one of the biggest mistakes of the previous government.

The Yasi replanting, nursery and seedling supply is also incentivised through the Ministry’s budgetary allocations for this fiscal year and will continue to gain optimum interest from farmers and landowners.

Secondly, Mr. Speaker Sir, in order to reach the optimum levels of utilization and benefits we must have a thorough understanding of the value chain, not only the benefits but to identify key players and areas of improvement government can assist throughout the supply chain to elevate the status of the commodity.

The Ministry will conduct a comprehensive and integrated value-chain and santol oil analyses to inform government of the potential socio-economic benefits, key areas of interest, investment and funding opportunities for the sandalwood industry.

Mr. Speaker Sir, it is undeniable that the value of the sandalwood commodity is in its downstream processing and in its value adding.

Thirdly, the Coalition Government through the Forestry Ministry is looking to partner with potential donors, and funding institutions to assist interested commercial saw millers that are keen to expand and grow their operations.

Public-private partnerships with local & international institutions and non-governmental organizations; and effective bilateral partnerships with other countries who have a comparative advantage on sandalwood will be essential if the sandalwood industry in Fiji is to access international markets with premium rates for niche products processed locally.

Fourthly, the Ministry through the Sandalwood Development Programme will establish a sandalwood brand recognition and development in the international marketplace based on its natural properties and competitiveness. We will be reaching out to key agencies within Government to develop this brand.

Mr. Speaker Sir, the Ministry takes note of the need to always strike a balance between production and protection.

Government have been supporting the sandalwood development program since 2011 and have invested a total of four hundred and twenty thousand dollars in the Programme in the last five years and ensuring the inclusive involvement of various key stakeholders including women and young people in the implementation of the project.

Fifthly, Mr. Speaker Sir, the Ministry continues to value the importance of scientific research. In our journey to fully realize the optimal value of sandalwood, the Ministry in 2020 collaborated with the Australian Centre for International Agriculture Research (ACIAR) improving the understanding of the breeding biology and genetic diversity of Santalum yasi, the local species. 

For any commercial species, enhancing genetic conservation is important. It not only preserves the quality but also the cultural integrity of our local species, so it doesn’t become extinct.

The Australian supported program was for developing strategies to enhance the quality and availability of Santalum yasi germ-plasm and disseminating practical outcomes and implications of the project objectives to growers and practitioners.

Sixthly, Mr. Speaker Sir, the Ministry is also working to improve the sandalwood market system to ensure equitable benefits for our local sandalwood growers.

A sandalwood market concept has been developed for the establishment of Sandalwood Growers & Buyers Association and was highlighted in the report titled “South Pacific Sandalwood Industry Plan for Fiji and Tonga”.

Mr. Speaker Sir, the Ministry have begun consultation with sandalwood growers in the West and will have consultations with growers in the North and Central Eastern Division then finalise the Association Cooperative by-laws before the formation of the Sandalwood Growers Association in the 2023/2024 financial year in consultation with appropriate agencies.

Mr. Speaker Sir, the Ministry is responsible for all sandalwood growers, it will therefore maintain an internal database, capturing information like the location of sandalwood plantations and seedling suppliers that will be shared with the Association once it’s established.

Mr. Speaker Sir, throughout history, the high demand for sandalwood has resulted in over-exploitation, illegal cutting, and black-market trade.

This brings me to the seventh strategy, to develop a fit for purpose regulatory framework for the sandalwood industry in Fiji, as it has been done in other nations. So, to sustainbly manage and utilize sandalwood, a National Sandalwood Regulations will be developed in collaboration with other government agencies and stakeholders.

Mr. Speaker Sir, the markets for sandalwood heartwood and oils from Pacific Island Countries including Fiji remained resilient, with 2019 sales of Santalum album oil at USD 1,750 to USD 2,100 and up to USD 2,500 per kg.

Mr. Speaker Sir, the average Santalum yasi supply in recent decades has rarely exceeded 220 million tonnes of heartwood which is no more than about 7-8% of the global sandalwood market.

The global market for sandalwood products is predicted to persist strong up to beyond the middle of this century.

The Ministry will therefore strategically focus its efforts on niche markets since it cannot compete with larger countries that have large areas of sandalwood. Mr. Speaker Sir, this is where branding will be vital.

Mr, Speaker Sir, the Ministry is not only looking at the short-term goals but as part of the long-term plan for Sandalwood, the Ministry of Forestry has been working very closely with sandalwood growers, buyers and investors to promote and revive the Sandalwood Industry in Fiji.

To conclude, Mr. Speaker Sir, sandalwood can only reach industry status if we collectively work together to implement the seven strategies of the Development Framework earlier discussed. I therefore call on all key stakeholders, to join hands and make this happen.

Mr. Speaker Sir, I thank you very much for your indulgence and for this opportunity.

Vinaka Vakalevu, thank you and dhanyavaad.