The recent Government's communique stating that over Vt600 million from the Vt1 billion stimulus package allocated to the productive sector will be utilized by the Ministry of Agriculture while the Ministry of Trade gets over Vt300 million is greatly welcomed by the Vanuatu Foriegn Investment Promotion Agency (VFIPA) Board and its Management. The priority shift is in line with the way how the VFIPA is planning to undertake future promotional activities - to a more focused and targeted approach with primary sector a key focus with the aim of increasing production of high valued crops for value adding.
The Ministry of Agriculture will be using 60% of the funds for production increase while the 40% to trades will focus on value adding of products, said Director General (DG) of the Ministry of Agriculture, Livestock, Forestry and Biosecurity (MALFFB), Moses Amos.

“The funds are spread on a multi-year period, from 2021 to 2023,” he said. “In 2021, we will start using over Vt300 million on growing root crop production across all provinces of Vanuatu. We are focusing on climate-resilient crops such as kumala, manioc, taro and yam.”He said they want farmers to plant more root crops to ensure there is consistent supply to enable marketing.

Part of increasing the production of these root crops is to ensure there is enough planting materials to distribute after future disasters, he stressed. The Ministry of Trade will use the rest of the funds to set up commodity support program and cooperatives businesses to facilitate value-adding, he added.

“The intention is to convey these cooperatives into farmers cooperatives so that products can be purchased directly from farmers. With this system, farmers do not need to transport products to urban areas,” he said. The Vt1 billion stimulus package was announced by the Prime Minister (PM), Bob Loughman, on Independence Day as part of the government’s priorities in addressing the socio-economic impacts of COVID-19 and cyclone Harold.