Improving access to markets for smallholder coconut farmers in Samoa

Improving access to markets for smallholder coconut farmers in Samoa

Round 2 Samoa Agriculture Active

57%

43%

Partner contribution

$ 651,969

DFAT contribution

$ 496,162

Icon Total Funds

Total Value

$ 1,148,131


Start: January 2018 - End: December 2019

Partners

Krissy Co Ltd

Krissy Co Ltd. is a leading manufacturer in Samoa, producing canned products, small goods, snacks and tissue products, and is heavily involved in agricultural development and value adding of farm-based products for exports. The company processes coconut cream and is the sole exporter of Samoan coconut cream to Australia, New Zealand, the Cook Islands and American Samoa. They are a buyer and business mentor to the Savai’i Coconut Farmers Association (SCFA).

Fairtrade Australia and New Zealand (Fairtrade ANZ)

Fairtrade ANZ is a widely recognised global ethical label, enabling consumers to identify products that are sustainably produced and fairly traded under international standards.  Fairtrade ANZ drives the market for Fairtrade certified products in the region and provides support to smallholder producer organisations.

About this partnership

This partnership aims to scale up Samoa’s existing participation in Fairtrade coconut cream supply chains to respond to increasing international demand and position Samoa’s coconut cream as a regional and global leader in the ethical market for coconut products.

Krissy Co. and Fairtrade ANZ have worked together since 2012 to support the establishment of the SCFA. Working together, the partners pioneered the development of the only Fairtrade organic coconut cream supply in Samoa. The two organisations identified an opportunity to develop a new product – 20 litre sized packs of 100 per cent Fairtrade, organic Ultra Heat Treated (UHT) coconut cream for export. This initiative enables further support to SCFA to scale up production and expand its membership base, and to ensure investments in appropriate processing equipment at Krissy Co.

Fairtrade ANZ supports the design and implementation of partnership activities, and oversees monitoring, reporting and sharing of lessons learned. DFAT brings important connections with the Samoan Government for policy advocacy on agricultural and development issues, and will help to ensure improved gender equality outcomes through the initiative.

Krissy Co. benefits through an upgrade to its coconut cream processing equipment, through obtaining internationally-recognised Fairtrade process certification, and through an increased, sustainable supply of coconuts. Sales are projected to increase by 400 per cent, including through exports of a new product line.

SCFA will become a more capable and sustainable organisation. Their engagement will benefit more than 200 households, facilitating their increased participation in the formal cash economy. These households will increase their incomes by more than 200 per cent through increased productivity. The initiative will also create 74 new jobs in the manufacturing facility, mostly for women.

Gender

This partnership promotes women’s economic empowerment through improving female coconut farmers’ business and farming skills, and providing employment opportunities in the Krissy Co. coconut processing plant. The initiative also promotes women’s leadership and decision-making through mentoring and training both women and men to increase the visibility of women’s labour, and to improve women’s representation in the farmers’ association.

Although women are active in family coconut production enterprises, their labour is often unrecognised and they often do not occupy decision-making roles. SCFA is one of the few farmer organisations in Samoa led by a woman. This partnership helps to build on this ground-breaking female leadership through training and mentoring other women farmers and through engaging men on the value of women’s roles in family businesses.

With increased coconut production Krissy Co. will expand its processing facility and has committed to employing more women at all levels of its business. This partnership is also an opportunity for Krissy Co. to raise awareness on issues such as domestic violence and child protection with workers and throughout their supply chain

Progress Update

March 2019

A Fairtrade Development Plan based on community needs was designed and has commenced under the Savai’i Coconut Farmers Association (SCFA), continuing over the next nine months. The Plan includes measures to address issues such as machinery for land clearing, livestock interference when planting new trees, and access to fresh water. The SCFA appointed two women to its six-person leadership team. Pricing and quality discussions were held between the SCFA and Krissy Co. to ensure fair pricing and the consistent supply of quality coconuts to Krissy Co.. As a result of these discussions, the price paid to farmers for husked coconuts has doubled.

 

Key activities

  • Construction of the Krissy Co. warehouse in Apia was completed in September 2018. Employing 16 new staff, production of fresh coconut cream has increased from three to five days per week to process a higher volume of coconuts.
  • A new coconut cream processing unit vital to delivering a UHT coconut cream product arrived in January 2019. Related aspects of the initiative, such as training and certification assessments, can now be implemented with the arrival of the new machinery.
  • SCFA were granted organic certification, allowing Krissy Co. to sell coconuts sourced from SCFA under an organic label.
  • Submissions have been made to comply with the US Food and Drug Administration’s new labelling requirements, with Krissy Co. planning to supply the US market in addition to Australia and New Zealand.
  • A replanting program was supported with the recruitment of a volunteer horticulturist. Krissy Co. and SCFA are now focused on alternative methods of increasing the supply of coconuts through recruiting more members to the SCFA and improving incentives for farmers.
  • The Fairtrade premium provided to SCFA has been used to invest in improved machinery and water infrastructure to address issues identified by Fairtrade and SCFA. Another certification assessment is planned in the next three months.
  • Fairtrade online media channels including website and news portals are highlighting the role of male and female farmers.
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