2024, Volume 32, Paper 3
ISSN: 1883-5675

Assessing Profitability and Cost Competitiveness of Small Ruminant Production in Fiji

Christie Chang – Independent Consultant, HSC Market and Value Chain Research Services, Australia

David Falepau – Associate Professor, Charles Sturt University, Australia

Karishma Goundar – Agricultural Officer, Ministry of Agriculture, Fiji

Abstract

In Fiji per capita sheep and goat meat consumption is high by world standards, and nearly 95 per cent of that is sheep meat supplied by imports. There has been government support to develop the small ruminant industry and to increase local production, via research and farmer training and extension, as well as providing breeding stock and farm infrastructure (sheds and fences) to farmers. However, growth in local stock numbers is slow and varied, and imports continue to increase. Poor nutrition and worm infestations were said to be the main contributing factors to low on-farm productivity, and hence slow industry growth. The objectives of this paper were to assess profitability and cost competitiveness of local small ruminant production in Fiji, and to identify issues and areas for improvement. A cost of production and gross margin calculator was developed specifically for the goat and sheep enterprises in Fiji. It was used to develop enterprise budgets for representative goat and sheep farms, as well as to demonstrate the financial impact of changes in production practices and improvements in production parameters. The results show that gross margins were positive for live animals that were sold directly to households at the farmgate, even after accounting for the opportunity costs of family labour and capital. However, locally produced sheep or goat meat may not be able to compete with imports at the formal market in terms of price, quality and consistency in supply. The conclusions were: (1) given the dynamics of the market, continuing on-farm monitoring and market update are crucial for providing reliable estimates to aid policy makers and value chain players in developing the industry; (2) to compete at the formal market with imports, issues along the value chain need to be addressed from improving access to land and other farm inputs to improving marketing infrastructure and to building consumer confidence; and (3) continuing targeted government support on research and extension is key to developing a profitable and sustainable small ruminant industry in Fiji. 

Keywords: gross margin analysis, value chain analysis, small ruminant production, Fiji

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