[Published on Saturday, 18 April 2026]
BY IRWIN ANGIKI
A number of copra farmers have come out supporting the new management fee introduced by the Commodities Export and Marketing Authority (CEMA) on buying prices.
The new fees introduced on March 17 this year was initially met with criticism by farmers and small buyers. Major copra and cocoa exporters said it would ‘put them out of business’.
From the market buying price of $6 per kilogramme, the new fee was $3.05 per kg ($3,051 per tonne) for copra exports.
Deputy Prime Minister and acting minister of Commerce, Manasseh Sogavare announced on March 23 a review of the new fees.
CEMA has explained that the new fee was targeted at exporters who were making ‘huge profits’ from the industry at the back of the hardworking farmers, who were earning marginally less.
CEMA also said the fees would go towards its plan to buy a landing craft which it would use to go around the country directly to the cocoa and copra farmers and buy their products where ever they are.
The authority argued that the new fees underscores its motto of ‘Farmers First’ which guides its activities and programmes.
However, exporters in turn dropped their buying price to $2.95 per kg, some as low as $2, to cater for this new fee.
Farmers who are selling their copra to CEMA say this action by the exporters is best described as shirking the obligation to pay the new fee and throwing it on the farmers by reducing their buying prices.
“By reducing their buying prices from $6 to $2.95 or less, the exporters are transferring the burden of the new management fees onto the farmers,” a group of copra farmers told Island Sun on Saturday, April 11.
“The exporters should just shoulder the cost of CEMA’s new management fees and continue buying our copra at $6,” the farmers said.
Turning to CEMA
Ataban Tonezepo, 40, a copra farmer and buyer since 2012, said he was struck at first when the new fees were introduced.
“The exporter I sold my copra to told me their new buying price was $2.95 because of the new fee. I was not aware of the new fee and I negotiated for them to buy my copra for the old $6 per kg rate. To which they agreed. But, the next time I was told I was going to have to sell my copra to them at $2.90 per kg because they were no longer buying at $6 per kg. They blamed CEMA for this price drop.
“I wanted to find out for myself so I went to CEMA for an explanation. CEMA explained to me the truth, and then offered to buy my copra at $6 per kg.
“This is what the exporters should do, like CEMA, buy our copra at $6 and pay CEMA their $3.05 management fee,” Mr Tonezepo said.
He encouraged other copra farmers to sell to CEMA.
Another farmer from West Guadalcanal, Kevin, shared similar experience.
“I sold my copra to the exporters but ran losses and very small profit due to transportation, accommodation and labour costs. But then I came to CEMA and learnt the truth from them, I now make good profit selling my copra to CEMA,” he said.
Downside of exporters CEMA aims to address
CEMA said with the new management fee it was planning to purchase a landing craft to allow it to go to the farmers in the provinces and buy their copra where they are located.
This should help remove costs of transporting copra to the capital, Honiara, meeting accommodations while transiting in the capital, and reduce labour costs.
The new management fee would also go towards purchase of copra bags to distribute free-of-charge to copra farmers, CEMA said.
Exporters sell and make profit from copra bags, CEMA told Island Sun.
Tonezepo said he looks forward to CEMA realising its vision to have a landing craft and also free distribution of copra bags to farmers and buyers.
CEMA also adds it is proposing a minimum fee of $4.50 per kg for copra buyers and exporters, to coax them not to totally transfer the weight of the management fee onto the farmers.
Exporters are important in the industry: CEMA
CEMA says it sees exporters as vital players in the copra industry in Solomon Islands.
“We need exporters. They are very important just as the farmers are. But the gap between profits has to be narrowed.
“And we encourage and tell exporters to come and discuss with us their challenges with the new management fees so that we can come up with a win-win arrangement. But this has to be done on an individual basis because each exporter faces situations different to others,” CEMA said.
CEMA told Island Sun since the new management fees were introduced, no exporter has approached the authority for dialogue.
Exporters hit back
Exporters who spoke with Island Sun describe the new management fee as ‘killing copra’ in Solomon Islands.
A senior worker of one of the major copra exporters of the country, speaking to Island Sun under condition of anonymity due to not having official authority to speak on behalf of the company, dismissed the idea of exporters making huge profits.
“Copra exporters pay a lot of fees and licences. We used to pay $50 per tonne, now it’s $3,051 per tonne thanks to CEMA’s new management fee. We pay an export licence, sampling requests, and Customs declarations. Our operational costs and storage costs are huge, a lot of fees and charges. Then there are the shipping and logistics costs, cost, insurance and freight costs,” the exporter said.
The exporter adds that it is false to say that exporters do not go to the provinces to buy copra from the farmers.
“We do have buying centres in the provincial capitals which are also an expense to operate and manage,” the exporter said.
Solomon Islands Commodities Private Ltd (SICPL) told Island Sun yesterday that due to CEMA’s new management fee, farmers are turning away from them.
“One week we have not bought any copra although we are buying at $3 per kg. No copra. Our price is uncompetitive. CEMA are paying higher so any copra are going for CEMA.
“It’s a going to be a disaster. We cannot offer competition for farmers to get the best price. That’s what we’re worried about, we’re worried about our customers. It’s a bigger problem,” Dave, manager of SI Copra, told Island Sun in an interview yesterday.
John from C-Corp Solomon Islands shared the same sentiments.
“Our copra warehouse is stacked to the roof with thousands of fully packed copra bags which we cannot export because we are running at a huge loss. So, the commodity is just stocked there awaiting any time when the prices are returned to sensible rates,” John told Island Sun.
He adds that CEMA’s new fee is impacting all stakeholders of the copra industry.
“Farmers are losing money, ship owners are losing money, boat owners are losing money, basically everyone involved in the process of this commodity are losing out, and only CEMA stands to gain.”
A visit to the C-Corp warehouse yesterday saw roof-high stacks of copra, sitting waiting for when they could be sold.
Photo credit: Irwin Angiki
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