Policy Setting for Improved Linkages Between Agriculture, Trade and Tourism: Strengthening the Local Agrifood sector and Promoting Healthy Food in Agritourism Workshop organised by the Government of Tuvalu In collaboration with and Pacific Community, CTA, PIPSO and SPTO. Funafuti, Tuvalu, 7 & 10 September 2018

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THE PRESENTATION AT THE AGRITOURISM WORKSHOP
7TH
– 10TH
SEPTEMBER 2018
VAIAKU, FUNAFUTI.
AGRIBUSINESS THE KEY PRIORITY AREA FOR SUPPORT
(Presented by Saufatu Sopoanga, Member of the
Executive Committee of TNPSO)
1. What is the meaning of Agritourism (from google)
Ø Agritourism or agrotourism involves any agriculturally based operation or activity that brings
visitors to a farm ranch. It has different definitions in different parts of the world, and
sometimes refers specifically to farm stays, as in Italy;
Ø It involves the making of the various food which would attract tourists to visit the farm sites,
outskirt tour lodge sites more than once;
Ø In the context of Tuvalu, as now introduced agritourism is the place, (the centre point), where
to gain and share knowledge, empowering the people to learn from each other and to better
understand the linkings between the local agricultural food and handicrafts production and
the tourism industry, and then trade in those products and services;
Ø To develop Agritourism the GOT, i.e. the Department of Agriculture (DOA) must develop a
genuine commitment, and to drive for the establishment of a well coordinated agent or a
‘centre point’ so that representatives of DOA (GOT), the agribusiness people who are from the
private sector and other stakeholders could come together and agree on an organizational
structure that will develop the industry of agritourism for the benefit of all those involved;
and,
Ø The support services for agritourism must be on wholelist approach, and not piecemeal.
2. Why is agritourism important?? It is important because, it:
1. Provides educational opportunities to the public, the department and partners, private
sector and stakeholders, the central and local governments;
2. Help to preserve agricultural lands;
3. Allow the central and local governments, the departments, the private sector, partners
and stakeholders to develop appropriate enterprises;
4. Create new potentials for revenue streams and sources;

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5. Present the need for reforms and restructuring in order to strengthen and empower the
local capabilities to adapt and provide resilience to face the challenges of the impact of
climate changes.
3. The Meaning of Agribusiness (from Google)
Ø Briefly, agribusiness is the business of production (value chain) of agriculture or fisheries
primary resources being processed to finished products for trading;
Ø It is a line of business that focuses on the setting-up the value chain of producing agriculture
or fishery products; The value chain includes: machinery required, processing, warehousing,
distribution, marketing, and retailing of agricultural or fishery products; to receive the benefit
of income or revenue.
Ø Agritourism plus agribusiness should make it an wholelist approach as it brings in trading;
the retailing of products to bring income.
4. The Agribusiness priority areas for Support
The Department of Agriculture serves as the main authority that takes for full responsibility for
the development of the agricultural sector in Tuvalu mainly, to ensure food supply and security is
maintained and sufficient supply of nutrients or compost is put back into the soil.
(i) The Strategic Target
The more specific strategic target (ST) for the supply of local food and other products such as local
handicrafts, is ‘to revive the marketing of local food and other local produce to increase the
resilience of Tuvalu towards the impacts of climate change’. This ST is in consistence and aligned
with the National Strategy for Sustainable Development (NSSD) 2016 – 2020 (Te Kakeega III), the
Ministry Corporate & Annual Plans, Annual Road Maps and Budget Outputs.
Six objectives or priority areas were listed in order to achieve this ST. The priority areas are:
1) Increase local food consumption and decrease reliance on imported food;
2) Generate foreign exchange earnings by exporting prime local products;
3) Revive traditional integrated organic farming practices and consequently increase land
productivity;
4) Preserve and breed more climate resilient traditional food crops and tree varieties by
cultivating them with innovative crops and trees that are bred to be more resilient to
climate change;
5) Increase knowledge and awareness of the benefits of local food;
6) Increase the sale of local produce and quality traditional handicrafts.

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If these six priority areas are implemented and achieved, it would result in the six areas of benefits
or outcome that would be reaped and enjoyed by the people and economy of Tuvalu. These
areas of benefits are:
1) Increased consumption of local nutritious food resulting in a healthier population with
fewer incidence of NCDs;
2) Revival and protection of Tuvalu’s traditions in the making of local food and the
making of handitcrafts through the upskilling of the younger generation;
3) Provision of an opportunity to earn more money and consequently encourage those
living on the outer islands to continue living there;
4) Increase in both cash and subsistence employment;
5) Opportunity to develop sustained trading arrangements with overseas markets
through the export on prime local products;
6) Increase in the Agricultural Sector’s contribution to gross domestic product (GDP) and
a narrower balance of trade.
It is envisaged that with the revival of the sale of local produce, it will bring about immense more
direct benefits for the people and economy of Tuvalu. In order to realise these benefits, a
structure was established to involve all responsible stakeholders to make their respective
contributions to assist the Department of Agriculture (DOA) to provide: 1) An enabling
environment for agricultural development; 2) Institutional strengthening of the DOA; 3) Increase
productivity of farmers through increased community participation in agriculture; and 4)
Establishing market systems for local agricultural products.
(ii)STAKEHOLDER RESPONSBILITY
The Government of Tuvalu is to take the leadership role in the Strategic Action Plan Frame-work
(SAPF) which included the Tuvalu Strategic Agricultural Marketing Plan (TSAMP). And, in fact, it is
the DOA which facilitated for the leadership role in the overall coordination of the implementation
of the plans.
The DOA provided support services to other stakeholder departments support services in terms
of allocation of adequate funds from both recurrent and development fund required to develop
the agricultural sector. These departments included education, health, environment, rural
development, gender and agriculture to fully integrate efforts directed at increasing consumption
of local food and production of local handicrafts.
The DOA also asked for the support services of local government agents Falekaupules & kaupules
to adopt a policy for their respective people in order to clear their lands, undertake the replanting
of coconut and other trees, re-cultivate the barren pulaka pits, and encourage their people to eat
more local food and produce traditional handicrafts.
It also asked the NGOs and the TNPSO to provide the technical backstopping to the people
involved with the production and sale of local food and local handicrafts.

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(iii) CONSTRAINTS AND CHALLEGES
The key challenges identified and listed by the department are as follows:
Ø Limited budget;
Ø Lack of seeds, tools and heavy equipment;
Ø Pests and disease outbrake;
Ø Harsh climate;
Ø Very poor soil;
Ø Dependence on imported food, and Short staff.
(iv) Structure of the Department of Agriculture (DOA): – (Please, refer to the presentation by
the Acting Director of Agriculture for the structure of the DOA).
5. WHAT THE SUPPORT SHOULD CONSIST OF
Taking the foregoing challenges into account, it is recommended that a full assessment is made
on the performance of the implementation of the strategic target in the last three years. The
findings of the assessment should help to identify the weaknesses in implementing the strategic
target and suggest options of alternatives to re-strengthen and to empower the areas of priority
so as to focus on the development of the Agritourism and its linking to the Tourism Industry in
Tuvalu.
Another area of support that comes to mind is the re-locating of the internal domestic part of
the Department of Trade (DOT) from the Ministry of Foreign Affairs, Trade & Tourism,
Environment and Labour (MinFATTEL) to the Department of Economic Development (DOED) in
the Ministry of Finance and Economic Development (MinFED). While matters of international
trade protocols should remain with Foreign Affairs, the internal domestic trade policies should be
re-located back to the DOED of the MFED, and there should be created a new department of
commerce, industry and trade to be accommodated in the up-graded office of the “Private Sector
Business Development Unit” to be headed by a Chief Executive Officer (CEO) or General Manager.
As indicated the value chain of Agritourism is machinery required, processing, financing,
warehousing, distribution, marketing and retailing to receive income. After processing and
producing products, there must be trading of the products and services produced. For trading to
happen and be successful, it is imperative and important that all stakeholders are made well aware
of their respective roles and appreciation of the additional costs impacted by the provision of
finances, facilities, infrastructures, technologies and services in support of the development of
Agritourism, the linking to the tourism industry including the trading of nutritious food and quality
handicrafts.
6. THE CONTRIBUTION SUPPPORT BY THE TUVALU NATONAL PRIVATE SECTOR
ORGANIZATION (TNPSO).
The TNPSO plays a vital link in the value chain of empowering and strengthening the private sector
to support the necessary linking between agritourism, the tourism industry and the trading of

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quality products and services. It is a member based organisation representing and promoting the
business interests of the private sector. It comprised mainly of micro, small and medium
businesses owned by private interests and are operated outside of the public service mostly for
profits. These private businesses are governed by the legislations under which they were
incorporated, registered or licensed and therefore they need to follow those laws as well as the
public policies relating to business and trade. The organization, i.e. TNPSO’s strategic plan aims
to influence the Government of Tuvalu to create the most conducive conditions for successful
businesses. Along with providing members of the TNPSO training and capacity building, support
and services to assist their businesses in succeeding.
(i) CONSTRAINTS AND CHALLENGES
The main constraints identified in the Te Kakeega III to the private sector are:
Ø small market and economy;
Ø small and scattered population;
Ø underdeveloped infrastructure;
Ø high cost of services;
Ø inefficient and expensive cargo transport;
Ø In-efficient public sector absorbing capital and human resources and lack of capacity.
The challenges to those operating in the private sector are:
Ø poor (near impossible) access to credit;
Ø high utility costs (telecommunication, internet, power);
Ø limited, unreliable and costly cargo shipping and air freight;
Ø chronic shortage of human resources;
Ø few domestic products available;
Ø no local product export.
(ii) Priority Areas of Focus
The Executive Committee (EC) of the TNPSO approved a strategic plan for the period of 2013 to
2016, to provide areas of priority focusing on how best to serve its members. The four (4) areas
of priority are:
1) Growing the size of the membership through doubling the membership by 2016; If TNPSO
is to influence government and to become a strong and representative organization, it will
need to significantly increase its membership base. Strong membership growth and
membership retentions, has been identified as critical success factors for the organization.
2) Advocating and influencing Government policy to ensure private sector growth;
Promoting conditions conductive for a strong private sector growth, is the mission of the
organization. Efficient private sector will be an engine of growth for Tuvalu and it will
create employment for people who are keen to work.
3) Introduce relevant direct services to members to enhance private sector growth and
competitiveness; In order to grow and become competitive, the private sector has to gain
relevant business knowledge and skills. TNPSO is well position to become a provider of

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such service and it will strive to develop over the next years a portfolio of relevant service
that will enhance private sector growth.
4) Build strong, effective and professional TNPSO to ensure an effective organization. In
order to succeed, fulfil its mission and achieve above goals it is recognized that TNPSO
must build its own capacity.
(iii) Conclusions on Priority Areas of Focus
Priority 1: Growing the TNPSO membership base would certainly contribute towards serving the
best interest of the private sector in Tuvalu. Due to the lack of finances, know how, and the
constant turnover in the post of CEO, the TNPSO membership has overall declined over the period
2013-2016. The overall lack of interest and awareness of the private sector in the TNPSO, supports
the further decline of memberships in 2017.
Priority 2: There has been little activity seen by the TNPSO over the period 2013 to 2016 in
influencing the growth of the private sector in Tuvalu. The survey conducted by PIPSO ‘Doing
business in Tuvalu’ is a useful document, and provides insights to the challenges faced by the
private sector of Tuvalu. Within the report there are several recommendations of activities for
TNPSO to undertake in order to fulfil and achieve its strategic target.
Priority 3: Enhancing the private sector through training and international donors is the key area
TNPSO can assist members in. Throughout the period 2013 to 2016 positive contact has been held
with PIPSO and other foreign representatives, it appears as though these relationships have
declined somewhat as evidenced by PIPSO and other foreign organizations not providing materials
or training through the TNPSO.
Priority 4: The TNPSO has the appropriate Governance structure and processes in place. The
most recent strategic plan is already 12 months old, with no current annual (no annual budget)
plan in place. The TNPSO does not appear to be making steps towards a stronger and more
effective organization.
(IV) Overall Conclusions
The TNPSO has the appropriate Governance structure and processes in place. However, the
most recent strategic plan is already 12 months old, with no current annual plan (no annual
budget) in place. And so it seems that TNPSO does not appear to be making steps towards a
stronger and more effective organization. The overall outcome of implementing the strategic
plan is disappointing. In 2017, it does not appear that the above arrears of priority were
achieved. In fact, it appeared as though less members were renewed or joined the TNPSO for
that year. Supposedly, this was due to lack of advocacy and information provided to members
under the leadership of the outgoing previous CEO.
Other impacts on the TNPSO include: 1) the Executive Committee (EC) appear not to be
honoring its duties, functions, powers and responsibilities as outlined by its constitution; 2)the
EC appear failing to meet on a monthly basis; 3) fail to arrange for auditing its annual accounts
on due time; and, 3) fail to call its AGM at due time.

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7. THE WAY FORWARD FOR TNPSO
It will do a lot of good and benefit to the TNPSO if its Executive Committee (EC) would consider
and decide on the most recent report by the technical assistance (TA) with reference to the
progress of the strategic plan of TNPSO for the period 2013 to 2016. The report considered areas
of positive achievement, and areas of improvement. It also considered the environment and the
challenges surrounding the TNPSO’s operations during the same period of time. The analysis
contain 12 points recommendations which could be used as a useful base guide to compile the
next strategic plan for TNPSO.
Additionally, the recommendations provided to the TNPSO in 2013 by PIPSO after conducting a
survey on “Doing Business in Tuvalu” for areas of improving the TNPSO services are still very
relevant. These are:
1) Take a pro-active role in initiating consultations with Government to address issues
encountered by the private sector businesses especially in access to finance;
2) Assess training needs of businesses in Tuvalu and conduct the relevant training
programs;
3) Dialogue with Government on the export opportunities and provide solutions on how
these can be carried out and outline where the Government assistance is required;
4) Collaborate with Government, PIPSO and other development partners in undertaking
relevant programs for business development.
8. THE PRVATE SECTOR DEVELOPMENT PLAN
Consequential from the push and influences of the private sector organizations, partners and
stakeholders over recent years, a national seminar was called to develop and provide the ‘Tuvalu
Private Sector Development Plan’ (TPSDP). It was held in Funafuti from 11-13 September, 2017, and
attended by representatives from Tuvalu Falekaupule, Kaupule and business communities from the
capital island as well as those from the outer islands of Tuvalu. They presented their views and wishes
on how they want their private sector businesses to be developed. The outcomes of the seminar are
included in this TPS development plan.
The long-term strategic target for the private sector aim at reforming and changing the way
businesses is currently done and replacing it with a more thrifty mode of managing them. These
reforms should be evolutionary if these changes are to be less disruptive but sustainable long-term.
The requirement for these reform efforts demand an improved high level of advocacy, awareness
raising promotion and outreach from all partners and stakeholders of the private sector inclusive. It
needs the participation of policy makers, private sector, media and civil society to propagate the
necessary attitude and behaviour for changing the private sector business culture.
The government is committed and has shown positive support, and is determined to move the
development of the private sector closer to the national goal of making it the ‘engine of growth’ in
Tuvalu. While a lot more support is required to lift the sector off the ground, the change in
government’s policy orientation is a welcoming sign to the private sector. Policies is needed to be

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acted upon through a clear-cut implementation strategy, an enabling organizational and institutional
structure and adequate resource allocation for the needed tasks.
The reforms also need to be sequenced and prioritized according to the political readiness to begin
implementation and the resourcing capacity is confirmed.
(i) The Tuvalu Private Sector (TPS) Development
In addition to the many challenges which are faced by the business organizations in the private sector,
there are a couple of others which needed mentioning. These are: 1) The negative impact of the
culture of communal life and the various practices associated with it; 2) The inefficiency with which
government support is delivered to the private sector; and, 3) The inadequate skills and capabilities in
the private sector; and ability, 4) The in-sufficient resource in the private sector to buy the skills that
the private sector they require. The challenges facing the private sector at this point in time, have
helped identify the key result areas that TPS Development Plan must target for development to occur.
9. KEY RESULT AREAS (KRA) FOR TPS DEVELOPMENT
The private business sector development is a subject that cuts across virtually all sectors of the
economy. Changes in other sectors of the economy directly affect the private business sector. A
healthy and educated labor force for instance can increase the output and growth of the private
business sector. In order to progress the development of the private business sector, the following
key result areas (KRA) must be implemented and take place as soon as possibly can. It is in this
juncture where the TNPSO will have a direct involvement on behalf of all members of the private
sector business community to provide the important linking support contribution in the value chain in
order that the TPS development plan be successfully implemented.
(i) Government of Tuvalu (GOT) and Tuvalu Private Sector (TPS) Partnership
It is important for both the GOT and the Tuvalu Private Sector (TPS) to have direct and equal
involvement in the development and implementation of the TPS Development Plan, Why?? Because
their respective contributions is key to the success of the plan.
Accordingly, a partnership will be formed between the government of Tuvalu (GOT) and the TPS,
partners and stakeholders.
(a) GOT-TNPSO Partnership Agreement:
The working relationship of closer collaboration between GOT and the Tuvalu National Private Sector
Organization (TNPSO), (partners and stakeholders) will be formalised clearly n a formal Partnership
Agreement. The agreement defines the parties’ responsibilities and obligations as they build the
private sector into the ‘engine of growth’ for Tuvalu. The building responsibility includes the
implementation of this PSD Plan and also the 20 milestones touching on business and trade that are
listed in TKIII.

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A Board of Directors that is to be appointed from the business owners in the private sector and
relevant officials in the public service will manage the partnership agreement.
(b) GOT-TNPSO Partnership Board:
The Minister of Finance and Economic Development will appoint members from both the private and
public sectors will govern and manage the implementation of the PSD Plan. The Board will provide
biannual reports to the appointing Minister on the implementation of the PSD Plan.
The Board will have 3 members from the public sector and 4 members from the private sector. The
Board members from the public sector will represent the financial institutions, the business centre in
the MinFED and the Office of the Prime Minister (OPM). Four more members can be appointed from
the membership of the TNPSO Board of Directors to make for a total of 7 members. The membership
structure shows a high-level government participation in the Board where the majority of members
comes from the private sector.
From the perspective of the TNPSO, it is more appropriate for the Chief Executive Officer (CEO) of the
newly upgraded Private Sector Business Development Unit (PSBDU) to be the Secretary to the Board.
(The upgraded PSBDU is to be titled the Department of Commerce, industry and trade). In this way
the CEO of the upgraded PSBDU will be directly responsible to and accountable to the MinFED through
the Registrar of Business and Cooperatives who is also the Secretary of the MinFED.
The primary responsibility of the Board is to provide monitoring and on-going evaluation of the PSD
Plan, update the plan and biannually advise the Ministers responsible for business and trade on the
progress of implementing the Plan. The Board will meet at least once every month and provide verbal
updates on issues including operational issues that are faced by private sector organizations.
(c) A “Business Incubator” to Develop the Private Sector
The business incubator concept is discussed in chapter 6 of the TK III. It is envisaged as a vehicle to
assist the development of the private sector in Tuvalu. To grow and develop the private sector would
improve the overall financial and socioeconomic quality of the country, as well as providing for
sustainability and independence.
The goal of establishing a business incubator is to improve economic development in Tuvalu, by
providing a place for businesses to be nurtured prior to entering the market. The following outlines
some alternative arrangements for the consideration and final endorsement of the Board as to the
operation of the business incubator. These alternatives arrangements may be more cost effective and
sustainable:
Ø TNPSO and Government to form a partnership for delivery of services to business;
Ø provide financial literacy training and assistance for businesses;
Ø Bolster Business Unit within MFED, and upskill current employees, employ Director of the
business unit, and work with a Technical Advisor where available;
Ø MFED/TNPSO/DBT are to work closely together to assist businesses in access the credit
guarantee scheme;

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Ø Create clusters; a group entrepreneurs and businesses who can come together by their
business/sector/region to work together. PIPSO has seen success in clusters, and this may be
appropriate for certain sectors within Tuvalu.
The other Key Result Areas (KRA) for the development of the TPS development plan are as follows:
(ii) Finance and Credit Arrangements for the Private Sector; (iii) Cash Grants for the Private Sector
Development; (iv) Strengthening the Domestic Market; (v) Review the Cost Structure, Laws and
Practices of doing Business in Tuvalu; ((vi) Big Physical Infrastructures crowd-in Business; (vii) Use of
Information Technology (IT); (viii) Training in Production Technology; and, (ix) Implementation and Co-
ordination of TPS Development Plan.
THANK YOU AND FAKAFETAI LASI
FOR YOUR ATTENTON!!!