VANUATU
Economy
GDP (2008): $574 million.
Per capita income (2008): $2,257.
Real growth rate (2008): 6.6%.
Avg. inflation rate (2009): 3.7%.
Natural resources: Forests, agricultural land, marine resources.
Agriculture: Products--copra, cocoa, coffee, cattle, timber.
Industry: Types--copra production, beef processing, sawmilling, tourism, financial services.
Trade (2007): Exports--$29.9 million: coconut oil, copra, kava, beef. Major markets--EU 44.9%, Philippines 14.0%, Australia 12.1%, Japan 6.8%, New Caledonia 9.7%, Fiji 6.7%. Imports--$201.7 million: machines and transport equipment, food and live animals, basic manufactures, mineral fuels. Major suppliers--Australia 31.1%, New Zealand 16.8%, Fiji 8.6%, Singapore 12.4%.
Average exchange rate (2008): U.S. $1 = 112.62 vatu.
ECONOMY
Vanuatu's economy is primarily agricultural; 80% of the population is engaged in agricultural activities that range from subsistence farming to smallholder farming of coconuts and other cash crops. Copra is by far the most important cash crop (making up more than 35% of the country's exports), followed by timber, beef, and cocoa. Kava root extract exports also have become important and, despite a ban by EU due to be lifted soon due to legal action, should soon be growing again. In addition, the government has maintained Vanuatu's preindependence status as a tax haven and international off-shore financial center. About 2,000 registered institutions offer a wide range of offshore banking, investment, legal, accounting, and insurance and trust-company services. Vanuatu also maintains an international shipping register in New York City.
Coconut oil, copra, kava and beef account for more than 75% of Vanuatu's total agricultural exports, and agriculture accounts for approximately 20% of GDP. Tourism is a key driver of the economy and contributed 20% of GDP in 2006 and 2007.
The area devoted to the main agricultural crops in Vanuatu was:
ha
| Coconuts 76,000 |
| Roots and Tubers, nes 5,100 |
| Cocoa beans 2,500 |
| Groundnuts, with shell 2,400 |
| Maize 1,450 |
Bananas 1,300 Vegetables 750 |
Coconuts dominate the area devoted to crops in Vanuatu. Over 76,000 ha of coconuts are grown. In theory that suggests a production of up to 760 million coconuts but actual production is quoted as being only just over 300 million which implies either an ageing population of trees or an underestimate of actual production. We suspect both are true and that production is over 300 million but below 700 million with many unharvested nuts. We believe that 500 million coconuts per annum is nearer actual production but only 300 million are harvested. That is really not surprising in the Pacific since production is scattered over many islands, some of which are remote and do not enjoy regular shipping.
Coconuts also absolutely dominate the tonnage of crops produced. 308 million coconuts were reported as being harvested and, if these, copra and oil from around 75 million coconuts was exported from Vanuatu in 2007. Fresh consumption is likely to account for a majority of the remainder although they are also being used to feed animals.
In tonnage, Vanuatu exports are dominated by copra. Over 10,000 tons is exported. There is also over 2,000 tons of coconut oil being sent out in bulk. Cocoa beans and meat are the next two important cargoes. Over one-third the total value of exports is derived from coconuts.
2008 Export Values
70 million coconuts are used to produce copra, some 10,500 tons, equivalent to 55 million coconuts are then exported with 2,800 tons, equivalent to around 25 million nuts exported as coconut oil. The availability of bulk transport is facilitating the export of oil. Taken together the exports revenues from copra and coconut oil account for half the annual export earnings. Vanuatu is thus dependent on coconuts for agricultural exports.
The implication is quite obvious. any increase in value added for coconuts would have a major impact on agricultural export revenues. there are earnings from some modest soap production. and the EC has set up a pilot oil mill operation to supply fuel for a generating plant in Santos. 9 other such pilot plants are planned.
ESPIRITU SANTO
Santo is Vanuatu's largest island, 4010 km2 in size and is fascinating in its diversity. Santo has Vanuatu's highest mountains; Mt Tabwemasana, over 1700 m., rises out of dense vegetation covering an entire chain which runs along the full length of the island on the western side. The southern and eastern parts of the island are quite flat, covered with plantations and fine grounds for cattle grazing.
The local people make their living by supporting the tourist trade, by cash-crop farming, mostly copra but some cacao and kava as well as peanuts, or by subsistence farming and fishing.
Santo probably accounts for over half the value of total agricultural exports of the country. Together with the surrounding small islands, over 60 million coconuts are grown every year. The beef from Santo is very famous and there are large Japanese cattle farms as well as a number of smaller ones operated by Australians.
The biofuel energy plant at Port Orly based on coconut oil and financed by EU (Vinay inspecting above), in the north-east of the island, has been producing 45 kva energy for 3 years without brealdowns. It has a copra crusher, filter and feeds oil into a generator. Electricity is piped underground to the largest village in Santo and citizens have prepaid cards they can slot into metres at home to buy the electricity that they need. The electricity is priced at 15 US cents per kw hour instead of the 40 cents being charged by the utility and common in thePacific region.
The coconut oil biofuel plant at Port Orly has tremendous implications for small isolated island states in the tropics. They can all use their coconuts to provide fuel for generating electricity for their needs. Advances on the prototype would allow sale of the waste heat produced in the process. The choice is between biogas or biomass if shells are used but oil where there is copra.
The use of 70 million coconuts for copra and oil already opens up the inviting possibility of an activated carbon plant. The setting up of such a plant would create a market for coconut shell charcoal.
Madame Claire Dornic is the largest exporter of coconut oil in Santo, she is convinced that Vanuatu needs to move to higher value coconut products and has spearheaded the lobby to obtain finance for the entire region. Claire is considering the production of coconut milk on Santo as well as making use of husks and shells. There have long been plans for setting up an activated carbon plant on Santo and it now looks likely that there will be one.
Project formulation is underway on an integrated coconut facility to be located on the Eastern side with some parts in Luganville, the capital of the island.