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Trends and opportunities
The market
Dairy products exported to Fiji include:
- Butter
- Cheese
- UHT milk (when local supplies are low)
- Powdered milk is imported, reconstituted and mixed with local product to supplement local supplies
- Milk for infant use
In the last few years there has been an increase in imports of cheese, yoghurt, milk for infant feed and ghee, but imports of fresh eggs and butter has decreased. The decrease in fresh and fertilised eggs is due to a ban on poultry products susceptible to Newcastle disease.
Opportunities
There are opportunities for Australian exporters in:
- Retail pack cheese
- Bulk butter and bulk instant and normal powdered milk for further processing and packaging in Fiji
- The supply of yoghurt, other cheeses and milk
There are also opportunities for exporters who can tailor products/services to the increasing elderly and health conscious population in Fiji.
Competitive environment
Supplying around 71 per cent of dairy product imports, New Zealand is a major competitor for Australia in Fiji (Australia supplies 29 per cent). There has been a decrease in imports of yoghurt and cheeses and milk for infant use from Australia due to better pricing offered by New Zealand.
Rewa Co-operative Dairy Co. Ltd is the only dairy producer in Fiji. It supplies 60 per cent of the local market with UHT milk, cheese, yoghurt, powdered milk and butter. High tariff barriers have been introduced to protect products produced by Rewa Dairy.
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Tariffs, regulations and customs
The dairy industry in Fiji is deregulated. Apart from bulk butter and powdered milk products, there is no import licensing. However, high tariffs have been introduced to protect the local industry.
Locally produced and imported butter, powdered, condensed, evaporated and baby milk is subject to price control. Retail mark ups are limited to 13 per cent. The Fiji Government imposes price controls on basic food items.
All products are subject to a Value Added Tax (VAT) of 12.5 per cent.
The import duty (provided by the Fiji Islands Revenue and Customs Authority) for dairy products are:
- Powder milk for infant use – nil
- Ghee – 3 per cent
- Full cream and skim powder milk – 10 per cent
- Cream – 10 per cent
- Yoghurt – 10 per cent
- Evaporated/condensed milk – 10 per cent
- Cheese – 10 per cent
- Milk and butter – 27 per cent
Industry standards
For packaging and labelling requirements refer to:
- National and Trade Measurement Decree, 1989 (No 14, 1989)
- National and Trade Measurement (Pre-Packed) packaging regulation 1989
- Health Department regulations
Confirmation on import duty rates are available through:
Fiji Customs Service
Tel: +679 330 2322
Fax: +679 330 2864
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Marketing your products and services
Market entry
The bulk of consumers in Fiji are price sensitive rather than loyal to a brand. Therefore, when Fijian importers/buyers source dairy products they seek the most competitive price.
Australian exporters interested in exporting dairy products/services to Fiji should contact importers directly to register their interest to supply and include an export price list.
Australian exporters, who can offer competitive prices, fulfil customised orders and provide regular supply should be able to export to Fiji successfully.
By exporting to Fiji you can possibly access inter-island traders who can assist penetrating other smaller markets.
Distribution channels
Import agents, wholesalers and some retailers import direct. Local products go from the manufacturer or wholesaler to retailers.
Payment terms within the industry are FOB/ cost, insurance and freight, telegraphic transfer within 30 days.
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Contact details
The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au
(Last updated: 13 Jul 2007)
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