BY JOHN HOUANIHAU
The Ministry of Agriculture and Livestock (MAL) is calling for the immediate revocation of the newly introduced management fees on cocoa and copra exports imposed under the Coconut and Cocoa Management Fees Regulations 2026.
The new fee by the Commodities Export Marketing Authority (CEMA) has had an immediate negative impact with reports of buyers shutting down sheds and farmers stranded with their copra produce across country.
Island Sun reported yesterday the situation on Malaita in which copra farmers from East Malaita were forced to stockpile their copra due to buyers having closed down, waiting for prices to improve.
MAL in its statement yesterday highlighted that the main concern regarding the fee increase is the ‘significant reduction in farmer returns’.
MAL said that with current market conditions indicating a copra price of approximately SBD6.00 dollars per kilogramme, the application of a $3.05 management fee effectively reduces farmer earnings to less than half.
MAL raised serious concern over both the process and the potential impact of these fees on the country’s agricultural sector, mainly on smallholder farmers who form the backbone of cocoa and copra production.
The statement said the regulation was introduced without proper consultation with MAL, the lead government authority responsible for agricultural development.
It further adds that any policy decision that directly affects farmers, agricultural productivity, and export performance must involve thorough stakeholder engagement, including the Ministry and the industry players.
The Ministry warn that this could discourage production, reduce export volumes, and negatively affect national revenue.
It also noted that exporters are likely to pass the additional costs on to farmers, placing further financial pressure on rural communities.
While acknowledging the need for revenue and industry support, MAL said such measures must support growth rather than hinder it.
The Ministry said that any fee increases should bring clear benefits to farmers, such as improved infrastructure, value-adding facilities, and better market access.
MAL also voiced concern over the lack of wider government consultation and call for a more coordinated approach to policymaking, urging the Acting Minister for Commerce, Industry, Labour and Immigration to revoke the new fees and conduct proper consultations before making decisions that affect the agriculture export sector.
“Our farmers are the foundation of our agricultural economy. Any decision that affect their livelihoods must be made with careful consideration, proper consultation, and a clear vision for long-term development,” the Ministry said.
Photo credit: Rodrick Desuri
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