Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact
ACTIV has acted as a trade facilitator for the cocoa producers groups and succeed to assist the export in 2008-2009 of 294 t of cocoa, which represent almost one third of the national production. ACTIV now is improving its logistics and seeking other markets internationally. The analyze of the trading has shown that the higher expenditure for the producers is the international shipping, which represent 10% of the CIF contract. This expenditure can be reduced by developing value-adding products such as the cocoa powder and butter and the chocolate.
The development of chocolate is also very valuable as it can also assist the producers of nuts, fruits, spices and handicrafts for the packaging with the various recipes.
ACTIV has already a letter of intent from Trade Aid, the New Zealand Fair Trade organisation, which has 37 shops nationally to distribute cocoa value-added products developed through ACTIV.
The Secretariat for the Pacific Community (SPC) is now interested in ACTIV as a national union for the research on the cocoa diseases and pests mitigation and the Fair Trade Association of Australia and New Zealand (FTAANZ) is also interested in working with ACTIV to develop a Fairtrade certification (FLO) adapted to the Pacific with the traditional community structures with traditional gardens.
ACTIV is also part of a pilot project starting in August 2010 to develop a Pacific brand to access niche markets in New Zealand. And ACTIV is on the way to be registered to the World Fair Trade organisation as a Fair Trade organisation.
ACTIV as a national union of producers/communities and acting as a trade facilitator for its members has already shown that the informal sector is a powerful sector when united. It gives also the opportunities to every people from the society to access an income generation activities whatever the volume of their products. The success of ACTIV also stands on the transparency of its trading system with the information of the producers/communities on the full supply chain.
How many firms do you expect to reach?
Locally we expect to reach around 20 different firms mainly in touristic industry with the hotels-resorts and the national airline company.
Internationally we will target regional and international niche markets (organic and Fairtrade). We already have interest from Trade Aid in New Zealand and 5 companies from Australia and New Caledonia and SERRV International from USA.
What is the volume of private SME finance you aim to catalyze?
We hope we can catalyze up to USD 2 Million annually through the different supply chains and the trading. The development of the rural economy is essential for its sustainability.
What time frame will be required to reach these targets?
These targets can be reached quickly as the producers/communities are already producing their products and we have confirmed potential markets locally and internationally.
What would prevent your solution from being a success?
We can face a shortage of the local raw materials due to natural disasters and cocoa from other countries of Melanesia area (PNG, Bougainville, Solomons and Fiji) can be purchased to supply the markets.
We can face an economic recession so that there is difficulties in finding regular markets to sustain supply. We have to develop strong local market to minimize effects of an economic recession.
We can face a risk of maintaining quality control and thus certification suspension. Strict guidelines will need to be implemented in line with the objectives of the organisation to return maximum benefit to small producers.
The price of imported chocolate can be lower. The chocolate has to be marketed as the only organic and Fairtrade Vanuatu/Pacific chocolate, which support the local producers/communities.