Cook Islands Deputy Prime Minister Sir Terepai Maoate said he was pleased with the enthusiasm shown by northern group pearl farmers about plans to increase pearl production over the next three years.
“I can sense a new level of confidence and enthusiasm on the part of pearl farmers for the future of the industry and a oneness of purpose on what needs to be done and working together to achieve those aims,” said Sir Terepai.
The DPM led a team to Manihiki last week comprising the MP for Manihiki Apii Piho and representatives from the Pearl Authority.
The farmers reaffirmed their support for the new marketing strategy, and the branding of Cook Islands pearls, which will be launched later in the year, said the chief executive of the Pearl Authority, George Ellis.
The setting up of a marketing revolving fund which would enable farmers to receive an advance payment of up to 50 percent of the value of their pearl crop was also enthusiastically supported by farmers, said Ellis.
“This will help ease the pressure on a farmer to sell his harvest quickly, and maybe get a lower price, just to get urgently needed cash flow,” said Ellis. He believes the scheme will create a beneficial trading environment between the pearl farmer and retailer.
Cook Islands had earmarked $200,000 for the revolving fund in the current budget but three conditions had to be satisfied first before the fund could be accessed.
However, Sir Terepai said after listening to the views of the farmers he was of the view that it would be very difficult to meet all the conditions and therefore he would be willing to recommend to cabinet that these be waived so that the funds can be used for the up coming harvest season.
“I also now have a better understanding that more funds are needed to make the revolving scheme work better and I will do my best to assist in this.”
The Pearl Authority also presented a $2.3 million project proposal to expand pearl production from Manihiki, Rakahanga and Tongareva over the next three years which would entail setting up a revolving fund that will be accessible to farmers to acquire farming materials and technicians.
“Increasing our pearl production is impossible because farmers don’t have the cash flow to expand production and commercial banks are unwilling to give farm loans for this purpose,” said Ellis, “and the only recourse to make it happen is to seek funding from aid donors such as China.”
Sir Terepai expressed his support for the project and has asked Ellis last year to prepare a project proposal which was recently forwarded to the Chinese government for approval.
“I am very hopeful that funding for this project will be approved,” Sir Terepai added.
