Fiji Rice Looks Forward To Establishing Contract Farming in Vanua Levu

Fiji Rice Limited looks forward to establishing contract farming for rice farmers in Vanua Levu.

This was confirmed by Fiji Rice chairman, Raj Sharma.

Speaking to SunBiz, Mr Sharma said: “We at Fiji Rice want farmers to have contracts with us to supply their rice.

“So what we are looking at in the next three months, we will be involving Fiji Crop and Livestock Council (FCLC) to get the contract done for the farmers.”

Mr Sharma said Fiji Rice may mandate different pricing structures for the contracted rice farmers.

“This is because they will be our loyal suppliers,” he said.

FCLC’s role

Council chief executive officer Jiu Daunivalu said FCLC had piloted contract farming with the ginger farmers before, and had proven successful.

“This must be replicated with other farmers including rice farmers in the Northern Division, in co-ordination with the Fiji Rice Limited,” she said.

“Contract farming with the Fiji Rice Limited would significantly assist overcome some of the major constraints relating to market, finance, agriculture machinery.”

Ms Daunivalu said the key to successful contract farming was understanding the principles of contract farming, before signing an agreement.

“Farmers who have engaged in contract farming benefits as they have secured market, access finance, and technical advisory support services.

“On the other end, contract farming addresses inconsistency in supplies, and compliance to quality and market standards.”

She said contract farming drive in the Northern Division for rice farmers would commence as soon as the boarder reopens with all businesses and communities open with minimum restrictions.

Ms Daunivalu said any contract should honour contractual terms, open dialogue between buyers and farmers, and clear mechanisms to settle disputes.

“FCLC ensures that all farmers must have a good understanding of the principles of contract farming,” she said.

“In terms of benefits, and risks and how they can be mitigated at production, market, people related when it comes to side-selling and misuse of inputs, and other non-controllables such as policy changes, conflicts, extreme weather conditions and pandemics like COVID-19.

“In line with FCLC’s strategic plan for 2021 and 2022, more training on contract farming will be conducted for farmers in the four divisions, including rice farmers of Vanua Levu.”

Feedback: maraia.vula@fijisun.com.fj