Dairy industry faces questions over sustainability
parliamentary committee heard how grants helped cover milk collection and transport costs amid concerns over long-term industry sustainability.
Wednesday 21 October 2026 | 15:00
Deputy Secretary for Agricultural Development Tekini Nakidakida.
Photo: Ministry of Agriculture and Waterways
Government assistance helped 227 dairy farmers continue supplying fresh milk in 2023, with 5.9 million litres delivered to Fiji Dairy Limited despite concerns over milk prices and transportation costs.
Ministry of Agriculture Deputy Secretary for Agriculture Development (Operations Department) Tekini Nakidakida told the Standing Committee on Natural Resources that grants to the Fiji Cooperative Dairy Company Limited (FCDCL) helped offset milk collection and transportation costs.
He said a significant portion of the grant was allocated to raw milk collection to address concerns raised by dairy farmers over milk prices.
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The funding also enabled contracted transport services to continue collecting milk, ensuring farmers maintained access to the market.
The programme also supported dairy farm roads, drainage systems, water reticulation and advisory services through four dairy advisory offices that provided technical assistance to farmers.
Mr Nakidakida said national milk production increased by 3.6 per cent despite a decline in the number of operating dairy farms.
During the committee hearing, committee member Shalen Kumar questioned how the ministry monitored the prices paid to farmers against their production costs and what measures were being taken to ensure the industry could remain sustainable without continued Government assistance.
Mr Kumar asked whether milk prices would eventually enable farmers to cover expenses, including animal feed, and operate without subsidies.
Mr Nakidakida said the ministry was working to develop the dairy industry and improve livestock management, including pasture development and animal nutrition.
The ministry’s Director of Animal Health and Production, Avinesh Dayal, said milk prices were negotiated between FCDCL, which represented farmers as sellers, and Fiji Dairy Limited, the buyer.
He said the two parties had an existing price agreement and had recently agreed to an increase through mutual understanding.
Mr Dayal said the FCDCL board was also working with the Fiji Competition and Consumer Commission (FCCC) on price-setting.
He said the process was ongoing while the Government continued to provide financial assistance to farmers to help offset production costs.
The assistance was allocated according to the volume of milk produced by each farmer, he said.
