Pearl farmers buy into marketing plan

Monday 30: China funding seen as only recourse for pearl farm loans

Deputy Prime Minister Sir Terepai Maoate says he is pleased with the enthusiasm shown by Northern group pearl farmers with plans to increase pearl production over the next three years.

“I can sense a new level of confidence and enthusiasm on the part of pearl farmers for the future of the industry and a oneness of purpose on what needs to be done and working together to achieve those aims,” says Sir Terepai.

The DPM led a team to Manihiki last Tuesday comprising the MP for Manihiki Apii Piho and representatives from the Pearl Authority.

The farmers reaffirmed their support for the new marketing strategy, and the branding of Cook Islands pearls, which will be launched later in the year, says the chief executive of the Pearl Authority, George Ellis.

The setting up of a marketing revolving fund which would enable farmers to receive an advance payment of up to 50 percent of the value of their pearl crop was also enthusiastically supported by farmers, says Ellis.

“This will help ease the pressure on a farmer to sell his harvest quickly, and maybe get a lower price, just to get urgently needed cash flow,” says Ellis. He believes the scheme will create a beneficial trading environment between the pearl farmer and retailer.

Government had earmarked $200,000 for the revolving fund in the current budget but three conditions had to be satisfied first before the fund could be accessed.

However, Sir Terepai says after listening to the views of the farmers he was of the view that it would be very difficult to meet all the conditions and therefore he would be willing to recommend to cabinet that these be waived so that the funds can be used for the up coming harvest season.

“I also now have a better understanding that more funds are needed to make the revolving scheme work better and I will do my best to assist in this.”

The Pearl Authority also presented a $2.3 million project proposal to expand pearl production from Manihiki, Rakahanga and Tongareva over the next three years which would entail setting up a revolving fund that will be accessible to farmers to acquire farming materials and technicians.

“Increasing our pearl production is impossible because farmers don’t have the cash flow to expand production and commercial banks are unwilling to give farm loans for this purpose,” said Ellis, “and the only recourse to make it happen is to seek funding from aid donors such as China.”

Sir Terepai stated that he was very supportive of the project and had asked Ellis last year to prepare a project proposal which was recently forwarded to the Chinese government for approval.

“I am very hopeful that funding for this project will be approved,” adds Sir Terepai. - DPM office