BY JOHN HOUANIHAU
A group representing copra and cocoa exporters in Solomon Islands says recently removed export levies on copra, coconut oil and cocoa harmed farmers, reduced trade and damaged the country’s reputation with overseas buyers.
In a statement released on May 25, the Copra and Cocoa Exporters Fraternity of the Solomon Islands responded to recent comments by the Commodity Export Marketing Authority (CEMA), which had defended the proposed fees.
The exporters said claims that exporters were making “extra profits” were inaccurate and did not reflect the high costs involved in buying products from rural areas and exporting them to international markets.
The group provided an example of copra export costs, saying that from an international selling price of $10 per kilogramme, exporters faced around $2 in freight, insurance and port costs, leaving a margin of about $2 after paying farmers.
According to the statement, the proposed levy of $3.05 per kg was higher than the exporters’ remaining margin.
The exporters argued that such costs would eventually be passed on to farmers through lower farmgate prices.
The group also claimed that after the levy was introduced between March and early May 2026, farm prices fell sharply and some farmers were unable to cover basic expenses such as fuel and tools.
According to the statement, some international buyers also cancelled orders and shifted to countries with more stable trading conditions.
The exporters said the levy negatively affected farmer incomes and rural economies before it was removed.
The group called on CEMA to release audited financial results from its trading operations through Solomon Commodities to support claims that exporters were still making high profits.
The exporters said they remain willing to work with the government and industry stakeholders to strengthen the coconut sector and support farmers.
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