NATURES WAY
COOPERATIVE FIJI LTD
MBA 434
2013
GROUP –
Tuesday
5pm
PRESENTATION OUTLINE


OVERVIEW


VISSION & MISSION


CURRENT SITUATION


CASE ANALYSIS


FINANCIAL TREND
SWOT ANALYS...
Natures Way Cooperative
(Fiji) Ltd.
Nature’s Way Cooperative (NWC) is based in Fiji and has
120 shareholders who are growe...
VISION & MISSION
ORGANISATIONAL
STRUCTURE
STAKEHOLDERS
EXPORTS
Mango
Pawpaw
Eggplant
Okra
Breadfruit
Cowpeas
BQA EXPORT FLOWCHART
COMPONENTS

RESPONSiBILTIES

GROWER
REGISTRATION

BAF, EXTENSION,
RESEARCH, EXPORTER,
NWC, FARMER

ON...
EXPORT REQUIREMENTS
IMPORTING
COUNTRY

• NEW ZEALAND
• AUSTRALIA
• USA

• JAPAN
• CANADA*

REQUIREMENTS

• QUARANTINE 1ST
...
THE FRUIT FLY
In Fiji the species is Bactrocera xanthode
 The New Zealand breadfruit pathway
requires that:
1. Fruit for ...
HTFA TREATMENT
FACILITY
COMPONENTS OF SYSTEMS
BAF WILL VERIFY
THE FIELD
RECORDS (FARM
REGISTRATION,
BIN #,
EXPORTER,
WEIGHT
RECEIVED)
TRANSFER FROM
FIELD BIN
COMBINED O...
EXPORT COMPARISON
HTFA TREATED COMMODITY
2007

commodity

2008

2009

2010

2011

2012

Qty (kg)

Qty (kg)

Qty (kg)

Qty (kg)

Qty (kg)

Qt...
FINANCIAL TREND
EVAN AFFECTS EXPORTS
Biggest papaya producers were badly hit by
the floods in 2012 and Tropical Cyclone Evan
Exports decli...
SWOT ANALYSIS
STRENGTHS
• No competitors
• Fruits and vegetables for Export
to undergo HTFA
• Quality and continuity of
Ma...
SWOT ANALYSIS
OPPORTUNITIES
• Increasing demand for
horticultural products

THREATS
• Natural disasters
• Climate change

...
BENEFITS
 Increase in foreign Trade
 Economic Growth
 Creates Employment to locals
 Promotes Fiji in International Mar...
FACTORS CONTRIBUTING
TO SUCCESS
 The quality and continuity of management
 NWC works with farmers to improve their
syste...
OTHER HTFA FACILITIES
IN REGION
 Tonga, Samoa, Cook Islands, Vanuatu, New
Caledonia, Hawaii
2 HTFA facilities only opera...
Benchmark studies in the
Pacific for HTFA quarantine
treatment
 Hawaii – successful venture
 Tonga – not a successful ve...
RECOMMENDATION
 Proper management of operational
expenditures
 Strategic planning
 Diversifying into other operations
...
LESSONS LEARNED
 An appropriate public private sector partnership
 Succession Plan enabled continuity of the program
 C...
LESSONS LEARNED
Business success depends on good management
Financial viability depends on maintaining a sufficient
leve...
FIELD PRODUCTION - PROCESS
 Farm Registration
 Field Agronomic Process Extension Division (MAF)
 Field records
FIELD PRODUCTION - PROCESS
PACKHOUSE - PROCESS
 Harvest weight – Exporter
Sorting, rejection. Selection - Exporter
Records – Exporter
 NOTE – und...
REFERENCE
• http://www.truepacific.com/producers/natures-way-cooperative/

• http://www.mit.gov.fj/index.php/divisions/dep...
Natures Way Co Fiji Ltd _MBA 434 2013
Natures Way Co Fiji Ltd _MBA 434 2013
Natures Way Co Fiji Ltd _MBA 434 2013
Natures Way Co Fiji Ltd _MBA 434 2013
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Natures Way Co Fiji Ltd _MBA 434 2013

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  • High Temperature Forced Air
  • The industry-owned cooperative works in partnership with the public and private sectors, and receives additional funding from domestic and overseas agencies.
    NWC provides an important income source for many farmers, particularly those who have suffered due to the decline of the sugar industry, once Fiji’s primary agricultural export.
    Body representing the needs of the horticultural exports industry
    Total grant funding approved: ECF A$263,321
  • 120 shareholders who are growers and exporters, with the vast majority being small farmers.
  • Baiosecurity Authority of Fiji
  • Initially a small enterprise handling just 30 tonnes of papaya each year, NWC now treats and packs about 1,200 tonnes of papaya, mango, breadfruit and eggplant annually. 
  • Importing countries- requirement (BQA), use of chemicals banned to treat fruitfly- use HTFA
  • Planning to double Fiji’s quarantine treatment capacity for fresh produce over a five year period, NWC has invested in infrastructure, systems and equipment. A new heat-treatment chamber and handling and grading equipment have increased capacity to about 1,200 tonnes per year. 
  • Increase from 2010 and slowed down to 2012.
    Due to – Natural Disiasters
    Decrease in Profit due to Overhead Expenditures .
  • •Hawaii – successful venture
    -Privately owned
    - Moved away from HTFA treatment to irradiation treatment facility because it allows for harvesting of riper fruits, treatment time is much shorter (5 to 6 hours) and treatment can be undertaken in cartons ready to ship.
    •Tonga – not a successful venture
    -USAID project – required quarantine treatment to be the responsibility of the private sector, however the country showed considerable resistance to the concept of private sector responsibility.
    •Cook Islands - not a successful venture
    -Lack of suitable agricultural land
    -Public sector initiative
    -Highly dependent on one commodity- papaya
    -High fixed cost structure of quarantine treatment
    •Samoa - not a successful venture
    -Public sector initiative(run by Dept of Agriculture). What was needed was the appropriate form of public private sector partnership
    -Lack of seriousness given to breadfruit as the core product
    -Major fungal diseases caused root and stem rots in sunrise papaya
    -Shelf life of fruit has been quite poor under Samoan condition.(Fiji has a comparative advantage in growing this variety)
    •Vanuatu - not a successful venture
    -Facility owned by local supermarket owner
    -Large capacity but insufficient throughput to approach viability
    -Constraints are, availability of supply and limited airfreight capacity to NZ
    •New Caledonia- not a successful venture
    -Facility run as a quasi-government operation used to treat citrus for export to NZ.
  • Natures Way Co Fiji Ltd _MBA 434 2013

    1. 1. NATURES WAY COOPERATIVE FIJI LTD MBA 434 2013 GROUP – Tuesday 5pm
    2. 2. PRESENTATION OUTLINE  OVERVIEW  VISSION & MISSION  CURRENT SITUATION  CASE ANALYSIS  FINANCIAL TREND SWOT ANALYSIS    BENEFITS FACTORS TO SUCCESS BENCHMARK STUDIES    RECOMMENDATION LESSONS LEARNED
    3. 3. Natures Way Cooperative (Fiji) Ltd. Nature’s Way Cooperative (NWC) is based in Fiji and has 120 shareholders who are growers and exporters, with the vast majority being small farmers. Established in 1995 Through the services it provides it helps small farmers to access export markets. Location - Nadi International Airport Number of Staffs - 14 Staffs Number of Members - 162 Members
    4. 4. VISION & MISSION
    5. 5. ORGANISATIONAL STRUCTURE
    6. 6. STAKEHOLDERS
    7. 7. EXPORTS Mango Pawpaw Eggplant Okra Breadfruit Cowpeas
    8. 8. BQA EXPORT FLOWCHART COMPONENTS RESPONSiBILTIES GROWER REGISTRATION BAF, EXTENSION, RESEARCH, EXPORTER, NWC, FARMER ON – FARM PRODUCTION EXTENSION FARMER FARMER HARVEST TRACE BACK AUDIT (BAF) REJECT 600 UNITS INSPECTION PASS HTFA RECIEVAL CORRECTIVE MEASURES (FARMER, EXTENSION, BAF) EXPORTER, BAF BAF NATURES WAY, BAF TREATMENT 47.2˚C INSPECTION FOR COMPLIANCE (BAF) LOAD INTO CHAMBER NATURES WAY, BAF GRADING PACKING INSPECTION CERTIFICATION UPLIFT OF SUSPENSION (BAF) POST TREATMENT NATURES WAY, BAF BAF BAF
    9. 9. EXPORT REQUIREMENTS IMPORTING COUNTRY • NEW ZEALAND • AUSTRALIA • USA • JAPAN • CANADA* REQUIREMENTS • QUARANTINE 1ST COMMERCIAL 2ND COMMERCIAL 1ST QUARANTINE 2ND Transship via Hawaii
    10. 10. THE FRUIT FLY In Fiji the species is Bactrocera xanthode  The New Zealand breadfruit pathway requires that: 1. Fruit for export must be sourced from trees and farmers that are registered by Fiji Quarantine. 2. Trees must be bait sprayed each week for a period of seven weeks prior to harvesting. 3. All fruit for export must be HTFA treated at the Natures Way Cooperative facility at Nasoso Rd Nadi Airport 
    11. 11. HTFA TREATMENT FACILITY COMPONENTS OF SYSTEMS
    12. 12. BAF WILL VERIFY THE FIELD RECORDS (FARM REGISTRATION, BIN #, EXPORTER, WEIGHT RECEIVED) TRANSFER FROM FIELD BIN COMBINED ONTO INSPECTION TRAY FOR PHYSICAL INSPECTION (BAF) SELECTED FRUITS TRANSFER FROM INSPECTION TRAY ONTO TREATMENT BIN (BAF)
    13. 13. EXPORT COMPARISON
    14. 14. HTFA TREATED COMMODITY 2007 commodity 2008 2009 2010 2011 2012 Qty (kg) Qty (kg) Qty (kg) Qty (kg) Qty (kg) Qty (kg) Pawpaw 502,838 403,014 332,612 436,234 849,498 141,772 Pineapple 152 637 422 97 465 3,720 Eggplant 465,872 415,613 419,146 552,490 481,767 460,806 Mango 23,170 19,447 15,793 27,277 19,277 49,549 Breadfruit 12,804 11,442 2,961 4,388 1,312 1,761 Okra 203,608 328,389 197,529 265,852 286,702 209,939 Cowpeas 31,795 32,892 43,606 29,052 28,793 15,747 Total 1,240,239 1,211,434 1,012,069 1,315,390 1,667,814 883,294
    15. 15. FINANCIAL TREND
    16. 16. EVAN AFFECTS EXPORTS Biggest papaya producers were badly hit by the floods in 2012 and Tropical Cyclone Evan Exports declined from 60 tonnes a week to 15 to 20 tonnes
    17. 17. SWOT ANALYSIS STRENGTHS • No competitors • Fruits and vegetables for Export to undergo HTFA • Quality and continuity of Management • An appropriate PPP • Facility core function aligned to national interest- promote export earnings WEAKNESSES • Inadequate administrative support- COOP • Under capitalization • The risk of an unjustified change in management • High operating expenses
    18. 18. SWOT ANALYSIS OPPORTUNITIES • Increasing demand for horticultural products THREATS • Natural disasters • Climate change • Expansion into new markets • New pest and disease • Diversification • Political instability
    19. 19. BENEFITS  Increase in foreign Trade  Economic Growth  Creates Employment to locals  Promotes Fiji in International Market  Creates sets standards and improve quality of farm produce  Chemical free treatment produce
    20. 20. FACTORS CONTRIBUTING TO SUCCESS  The quality and continuity of management  NWC works with farmers to improve their systems  An appropriate public private sector partnership.  Shareholders have not interfered operations.  Quarantine treatment fees have been set at an economic rate. .
    21. 21. OTHER HTFA FACILITIES IN REGION  Tonga, Samoa, Cook Islands, Vanuatu, New Caledonia, Hawaii 2 HTFA facilities only operational ( Fiji & Hawaii) Closure of facilities in the region- due to government operating the facility (Dept. of Agriculture), insufficient throughput for viability, limited airfreight capacity, other quarantine treatment of choice (Irradiation in Hawaii)
    22. 22. Benchmark studies in the Pacific for HTFA quarantine treatment  Hawaii – successful venture  Tonga – not a successful venture  Cook Islands - not a successful venture  Samoa - not a successful venture  Vanuatu - not a successful venture  New Caledonia- not a successful venture
    23. 23. RECOMMENDATION  Proper management of operational expenditures  Strategic planning  Diversifying into other operations  Integration with partners  Review equity of stakeholders
    24. 24. LESSONS LEARNED  An appropriate public private sector partnership  Succession Plan enabled continuity of the program  Cooperative - a successful venture  Commercial scale treatment facility should by run by a Private sector  The division of responsibility between quarantine treatment business and quarantine service
    25. 25. LESSONS LEARNED Business success depends on good management Financial viability depends on maintaining a sufficient level of throughput For sustainability, business must charge economic rates .
    26. 26. FIELD PRODUCTION - PROCESS  Farm Registration  Field Agronomic Process Extension Division (MAF)  Field records
    27. 27. FIELD PRODUCTION - PROCESS
    28. 28. PACKHOUSE - PROCESS  Harvest weight – Exporter Sorting, rejection. Selection - Exporter Records – Exporter  NOTE – under the supervision of BAF
    29. 29. REFERENCE • http://www.truepacific.com/producers/natures-way-cooperative/ • http://www.mit.gov.fj/index.php/divisions/department-of-cooperatives-businesses/ • NATURES WAY COOPERATIVE FIJI LTD

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