Page 20 - IB April 2022

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400 import licenses have been granted by the Australian
government, most of them for very small suppliers. The more
crowded market raises three concerns he says; the varieties
being exported, adulteration and food safety.
Dr Noble says while Australian import regulations don’t
specify what varieties of kava are allowed in, the World
Health Organization Codex has standards that could be ad-
opted.
Further, “adulteration of kava in the supply chain is some-
thing that’s [of concern]. It’s a very valuable product, the
temptation to put a little bit of cement or a little bit of flour
or a little bit of something else with the kava is very high
when you pay by the kilogram.
“The other main [concern] is food safety. So making sure
that there is not a bacterial load that could potentially make
someone sick in the same way as you would with any other
fresh food.”
Dr Noble says as a listed company, Fiji Kava “has these
things buttoned up, but it’s not a cheap thing to do. So small
operators can’t do that.
“The three major companies (Fiji Kava, Lami Kava and
Green Gold [Kava]), I think we constitute 98% of the kava
coming in, I think we’re all comfortable that those bigger
players are doing things the right way. A lot of that infra-
structure is set up to access the U.S. market, which demands
similarly high food safety standards.
“Overall there are challenges, but I think the amount of
kava that we might get into the market that’s risky is prob-
ably quite small and certainly wouldn’t make it to the mass
market.”
Australian Minister for International Development and Pacific, Zed Seselja at the Larger, well-capitalised players have also been able to pre-
Lami Kava plant. pare for the Australian pilot, investing in upgraded process-
ing facilities. Last November, Lami Kava commissioned an
However 33% of kava imports failed initial inspections for impressive new wash and grading facility, turning what could
non-compliant labelling. Problems included missing importer be a three-day job into a three-hour one. Lami Kava Managing
details, lot codes, country of origin information and warning Director, Donny Yee said, “We’re also increasing the number
statements. of farmers that we buy from. So the facility has actually done
Fiji’s government says kava exports netted FJ$43.6 us a great thing. Having that facility, we could buy probably
(US$20.2) million in 2020. The Vanuatu Kava Industry Asso- almost twice as much as we used to. So that’s good for the
ciation says the crop brings in VT $400 (US$3.45) million in farmers and good for us.”
annual export earnings. Tonga’s kava farmers have expressed In Vanuatu, kava scientist Vincent Lebot says the pilot pro-
the hope that the crop and exports to Australia will be central gram is “very good news for kava and a wonderful opportunity
to the recovery not only from COVID, but also from Janu- for producers in the Pacific.
ary’s devastating volcanic eruption and tsunami. Agriculture “However, at this stage this is still an ‘experiment’ and we
represented over 65% of Tonga’s exports in 2015/16 reports are not sure yet if this situation will continue in the future, or
the Food and Agriculture Organisation. Kava is also an impor- if there will be more restrictions. The Australian authorities
tant crop in Solomon Islands, Federated States of Micronesia, are testing the safety of kava for free consumption on their
Samoa and Papua New Guinea. national market, so kava will be under heavy scrutiny during
Clearly the stakes are high. this experiment. What is at stake is very important because
after the U.S., where kava is a success story so far, this is a
Ensuring quality western country traditionally hostile to kava who is testing
The surge of new product onto the Australia market has the safety of kava,” Lebot told Islands Business from Vanuatu,
brought prices down, from highs of up to A$400 per kg accord- where he has lived and studied kava for over 20 years.
ing to Pacific Trade Invest Australia during the height of COVID “We now have very good regional quality standards recog-
lockdowns, to half of that now, although prices vary and there nised internationally under the WHO/FAO: the Codex Alimen-
is some volatility.
Fiji Kava CEO, Dr Anthony Noble says they understand about Continued on page 28

20 Islands Business, April 2022