Coconut Power

Aivu Tauvasa advises Pacific Island businesses to look for markets close to home. (Photo: Samantha Magick)

It's a wide deficit, and one which the Sydney-based Pacific Island Trade and Investment Commission is pragmatic about closing. Commission Director Aivu Tauvasa says the commission's focus in 2006-2008 will include business support of women in commerce and young entrepreneurs.

"(That involves) mainly mentoring, helping them to develop business exports plans and market entry plans," Tauvasa says. "It's not just not handholding. I think one of the important philosophies is to give them the liberty to learn themselves. It gives them confidence and they are willing to go the extra mile."

Tauvasa points to a Tongan company, Tinopai Farm, as an example of a Pacific Island enterprise taking an innovative approach to expanding its reach in the Australian market through product development and diversification.

Sima Afeaki of Tinopai Farms says while the exporting of whole coconuts is still their bread and butter, "over time what became apparent was that we needed to diversify."

Tinopai Farm started exporting coconuts in 1995 with 13 containers that year. By 1997 it had gone up to 60 containers. In years 2002-05 it averaged 40 containers.

The subsequent diversification included attempts to grow and export watermelons to Samoa, potatoes to Fiji and squash to Japan. More successfully, it included distribution of coconut oil locally, initially sold in recycled Coca Cola bottles, and later in specially imported containers.

Recently a Melbourne retailer, Amanda Rishworth, helped Afeaka develop packaging and marketing for export versions of cosmetic products under the name Pure Pacifique and now holds an exclusive distribution license in Australia. The products include oil and two moisturizers. All are made from natural and unrefined virgin coconut oil.

Afeaki says their first shipment of 2,000 jars of the three different products arrived in Melbourne last November. Eventually he says "We would like to get to 2,000 a month."

Meantime, Tinopai Farms is also looking to increased Japanese taro exports to Japan.

Tauvasa at the Trade and Investment Commission says this is a classic case of research, "of let's wait and let's develop the market first, let's research the product so it is suitable in terms of smell, in terms of effects on the skin, affordable and pure and natural. They've just been testing, trialing, testing, trialing, and aware that there would be pitfalls in terms of market access, there would be pitfalls in terms of pricing, that there was a lot of competition."

She believes companies such as Tinopai Farms succeed because they take time to understand the markets they are targeting, and don't have delusions of grandeur, of making a lot of money very quickly.

But Tauvasa also advises Pacific Island businesses to look closer to home. "If our enterprises in the islands feel like their product is not going to be accepted in Australia, rather than give up hope we are saying OK, try another country in the region. You have a greater chance of success there than if you are targeting the Australia and New Zealand market.

"I think there is a perception out there that Australia and New Zealand are the only markets, but there are a whole lot of other markets with greater similarities in terms of customer preference and in terms of eligibility for incentives," she says.

TINOPAI TIMELINE

Tinopai Farm was set up as a family venture in 1993.

1993-94
>>> Squash-farming for export to Japan (by other exporters)
>>> Yam-farming for own-export to NZ (1 container)
>>> 2 employees (Sima Afeaki full time, plus 1 part-time)

1995
>>> Visited Australia and New Zealand to find importers for produce, with assistance from Pacific Islands Trade and Investment Commission offices of Australia and New Zealand
>>> Began commercial exports to New Zealand and Australia of coconuts (mature), taro and yams
>>> 8 fulltime employees and 13 containers exported (using dry, non-refrigerated containers)

1996-99
>>> Increased and consolidated export operations to Australia and New Zealand of coconuts, yams and taro
>>> Switched from dry to refrigerated containers for all produce exports
>>> Trialed other produce exports including frozen cassava and yam beans (to NZ), potatoes (to Fiji) and watermelons (to Samoa)
>>> 11 fulltime employees and average 50 containers exported per year

2000-05
>>> Specialized in exports of coconuts to Australia and NZ
>>> Development of Japanese taro exports to Japan
>>> Development of frozen sweet potato fries for local Tongan market
>>> 11 fulltime employees plus 3 part time and average 40 containers exported per year

COCONUT OIL AND MOISTURIZER MANUFACTURE

2000
>>> Began manufacture of 'pure, virgin, cold-pressed coconut oil' using small-scale manufacturing process and technology developed by Kokonut Pacific Pty (Dan Etherington)
>>> Began local sales of oil in Tonga, using reused 500ml plastic soda pop bottles
>>> 5 fulltime employees making 100 liters oil per week

2001-03
>>> Increased and consolidated local Tongan sales of oil
>>> Developed new packaging and labeling under the Tinopai Lolo Tonga/Tongan Oil brand, using new, unused 250ml plastic bottles
>>> Began exports of new 250ml coconut oil bottles to New Zealand

2004
>>> Began moisturizer manufacture using Tinopai coconut oil
>>> Began local Tongan sales of moisturizer under Lalata brand
>>> Development work (with Amanda Rishworth/Rishworks Pty) for oil and moisturizer products tailored to the Australian market, under the Pure Pacifique brand
>>> Pacific Islands Trade and Investment Commission Australia assistance with design, labeling and packaging for the Pure Pacifique brand

2005
>>> Completion of development work for Pure Pacifique packaging
>>> October - first export shipment of Pure Pacifique oil and moisturizers to Melbourne (total of 2,000 jars of the 3 products)

2001-2005
>>> 5 fulltime employees (all women) making oil and moisturizer as well as weaving mats using pandanus grown at Tinopai