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Tonga TASP Summary Paper

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THE KINGDOM OF TONGA

TONGA AGRICULTURE SECTOR PLAN


(TASP)

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SUMMARY PAPER

1 Rationale and development process

As part of Tonga’s national planning process, the Tonga Agriculture Sector Plan (TASP) presents the vision and
priorities to maximize contributions from the agriculture sector to the Kingdom’s economic growth and sustained food
security in the face of a changing world economy, looming climate change, and on-going natural disasters in the
Pacific.

As a result, the TASP promotes a balance between export-oriented objectives, import substitution, and subsistence
agriculture while incorporating a strong focus on sustainability and building resilience against climate change and
natural disasters. Specifically, the TASP will (i) articulate programmes and activities to achieve sector priorities; (ii)
define the roles and responsibilities of the different sector stakeholders; (iii) estimate implementation costs; and (iv)
provide a framework for measuring progress over the short- and medium-terms.

The design process for the TASP emphasized the importance of: (i) integrating all stakeholders’ views; (ii)
considering the different circumstances in the Outer Islands; and (iii) identifying linkages with related sectors. It
involved an inclusive process actively overseen by the ASGC with cooperation from: (i) all of MAFFF’s divisions; (ii)
the Church (four main denominations); (iii) stakeholders from the private and public sectors; and (iv) consultative
workshops involving 600 men and women farmers.

2 Background, context, performance of Tonga agriculture with challenges and


opportunities

How is agriculture sector performing among objectives of food security, exports and import substitution.

About 75% of Tonga’s population lives in rural areas with agriculture and fisheries as the main source of livelihoods.
While agriculture is the predominant economic activity in Tonga, its contribution is disproportionately small relative to
its share of the population and its relative importance has decreased in recent years with GDP contribution declining
from 26.3% in 2004/5 to about 19.2% in 2009/10. Rural out-migration and falling agricultural exports have contributed
to the decline in GDP output of agriculture. In 2009/10 about 90% of the country’s exports comprised of agricultural
and fishery products, with a value estimated at T$13.8 million, a figure1 significantly lower than the levels achieved in
the early/mid-2000s, of about T$20.0 million.

Food security

The factors increasing the vulnerability of Tonga’s agriculture sector include rural poverty, out-migration of rural
populations, an aging farmer population, and the impacts of extreme weather events which are increasingly
influenced by the unfolding effects of climate change. Tonga has one of the highest rates of subsistence food
production amongst Pacific Island Countries. Generally, rural poverty is concentrated among smallholder farmers who
practice mixed subsistence and cash-crop production. About 25% of households in Tonga are estimated to currently
live below the basic needs poverty line. Less than 10% of Tongan farmers are commercial producers who grow
excess products for the formal market. The majority of Tonga's agriculture is still based on traditional/subsistence
farming systems, some of which are under pressure from declining soil organic matter and declining crop diversity.
Most Tongan households keep livestock but there are very few commercial livestock operations (egg production and

1 A notable omission in terms of valuing exports is the failure to include as much as T$4.0 million from the export of handicrafts.

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small scale pig production) as livestock are kept primarily for home consumption. Livestock productivity is very low
but there are some opportunities in selected areas to increase productivity to improve food security and diversity, and
to generate, in some cases, excess livestock for sale – provided production and husbandry constraints are overcome.

Tonga’s rural population is declining slowly, with out-migration (in 2014 Tonga’s net migration rate was estimated to
be -17.85 migrants/1,000 population) and a lack of incentives (limited income earning capacity, and the attraction of
urban lifestyles) for young Tongans to remain in the sector. This is leading to an aging farmer population which faces
farm labour shortages - a scenario which has implications in terms of staple food self-sufficiency in the longer-term.

Continued and sustained self-sufficiency in staple foods may be considered a simple objective, but one which many
consider to be as important as growing exports, particularly in the face of more weather extremes - such as the
current (late 2014) 1/50 year drought and the recent cyclone Ian.

Exports

Tonga's export vulnerability lies in its reliance on a very few export commodities particularly squash with export
volume declining from about 21,000 Mt in the early 2000s to only 846 Mt in 2010/112. One of the immediate
challenges faced by the agriculture sector is the identification of commodities which have market opportunities to
replicate the scale and scope of squash production and exports. In this regard, farmers are considering alternative
marketing structures such as the Eastern District Farmers Council. Past focus has been on addressing opportunities
which have been identified by a few individual exporters for the export of commodities such as watermelon and
zucchini to off-season markets in New Zealand and Australia. Compliance with market requirements, not only in
terms of quality and consistency of supply, but increasingly in terms of biosecurity requirements, has become a clear
priority. In addition to meeting market access conditions, ensuring a consistent supply to satisfy potential market
opportunities remains a significant challenge. The knowledge-base for the production of new export commodities is
fragile, with dwindling expectations by farmers that MAFFF (through traditional adaptive research and extension
services) has the capacity and skills to generate and transfer the knowledge required to introduce and produce new
varieties. More recently (2014), some export businesses have decided to fund their own product-specific grower
outreach extension and crop production input services as MAFFF has not been able to respond to such demands.

Import substitution

Tonga has an “unwritten” objective of not becoming dependent on imported rice in the future, not only because of the
impact on the balance of trade, but also because of the “food vulnerability” element. Tonga’s main agriculture imports
indicate that there could be commercial opportunities to replace the importation of chicken and mutton, and to a
lesser extent, beef. In 2009/10, Tongan imports of agriculture products (mainly vegetables and animal products) were
valued at T$48.8 million, while vegetables were worth T$9.3 million. MAFFF Research has small programs on local
meat production from sheep, poultry, and ducks. Small, pilot, biogas/ piggery/ vegetables systems are also fledgling
import substitution activities - some of which may have potential for up-scaling, depending on reliable supplies of
processed feed, and for water for biogas. Domestic production of fruit and timber for construction are also import
replacement products with potential, particularly tropical hardwoods.

2 The decline in squash exports was a result of a complex set of factors that left many small scale investors with large debts, all of which need to be considered when
formulating the TASP.

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3 Challenges and opportunities for agriculture sector

4 TASP Design and Programmes

There are three core groups of stakeholders involved with the TASP: (i) the approximately 8,000 farmers3, and the six
main exporting companies, who are the primary targets in terms of incremental benefits; (ii) those who have key roles in
providing improved services and advice to the primary beneficiaries (MAFFF, sector financiers, and the Church); and (iii)
donors who are currently supporting the sector and are expected to continue this effort during the life of the TASP.
Coordination between the stakeholders listed in (ii) and (iii) is not good at present and often leads to duplication of effort
and/or the design and implementation of inappropriate programmes.

3 From the 2011 census

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The guiding principles for the formulation of the TASP are:

Two key rural development planning and implementation lessons factored into the TASP are the importance of:

(i) essential community preparedness and social cohesion (defined as community readiness), prior to application of
“bottom-up” planning processes; and
(ii) fostering complementary linkages between plan components in order to generate and sustain expected benefits.

Considerations for future strategic directions for Tonga’s agriculture sector, following extensive consultations
throughout the Kingdom and literature review include: (i) a proactive focus on low carbon climate resilient development for
the sector as a whole; (ii) varying agro-ecological resources - soils, rainfall, current levels of agro-biodiversity, etc.; (iii)
access and market opportunities - proximity to sea transport services and pre-marketing processing and packaging
facilities; (iv) location-specific constraints and opportunities, (v) and access to reliable technical advice and labour-saving
machinery.

The four (4) sub-sectors and corresponding programmes that are the focus of TASP include:

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Description of Programme 1 by sub-programme

The three specific objectives are to: (i) develop baseline knowledge for sustainable management of soil and water (for
agriculture); (ii) develop climate resilient guidelines and indicators for diverse farming systems; and (iii) build capacity for
climate resilient agriculture (diverse farming systems and adaptive communities - to impact on Programme 3).

Accordingly, Programme 1 has three Sub-Programmes: (i) Healthy Soils and Sustainable Water; (ii) Building Agricultural
Resilience to Climate Change; and (iii) Building Agricultural Resilience to Climate Change Impact, which are outlined
below.

Programme 1: Climate Resilient Environment


Sub-Programme 1: Healthy Soils and Sustainable Water
Healthy soils  Refurbish and Operate MAFFF’s Soils Laboratory
 Conduct National Soil Survey and Update National Soil Maps
 Promotion/Awareness Raising of Soil Fertility Issues
 District-Level On-Farm Fertilizer Trials and On-Going Monitoring of Soil Fertility
 Feasibility Study on Application/Use of Vermiculture and Trial
Sustainable water  Quantifying Existing Groundwater Resources
 Estimating Current Exploitation of Groundwater Resources
 Determining Groundwater Resources Locations Available for Greater Use; and Fragile
Locations for Protection and/or Rehabilitation
 Pollution Risks to Groundwater
 Estimating Future Climate Change Impacts and Water Demands
 Community Engagement on Future Water Use for Agriculture
Sub-Programme 2: Building Agricultural Resilience to Climate Change
 Development, implementation and monitoring of climate resilient guidelines and
indicators
Sub-Programme 3: Building Agriculture Resilience to the Impact of Climate Change
 3-day capacity building participatory workshops on climate resilience and climate resilient
agriculture focused on a wide range of people who will be engaging with rural
communities, either directly or indirectly.
 Feasibility study to value “whole of island approach to resilient agriculture production”
Description of Programme 2 by sub-programme

The ten specific objectives related to the sub-programmes listed below ensure that:
(i) the sector’s key institutional policy (MAFFF’s roles and responsibilities) is appropriate, resourced and
implemented;
(ii) bio-physical policies (i.e. water, soils, biodiversity, NRM, climate change) are in place and are conducive to (or
govern) sector growth;
(iii) Government’s policies on the export and import of agriculture products, mainly food products are up-to-date and
relevant; and that the new Food Act is supportive of the sector;
(iv) Tonga’s farmers have access to land, labour and farm finance;
(v) international relationships with important trading partners are maintained;
(vi) Tonga’s agriculture sector complies with national regulatory/compliance conditions and requirements;
(vii) Tonga’s agriculture sector is protected from incursions from pests and diseases, and is able to comply with
international quarantine requirements;
(viii) Tonga’s agriculture sector is supported by functional and effective industry organizations;
(ix) There is a functional and effective market information system in place; and
(x) Improved agro-meteorological services.

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Programme 2: Enabling environment
Sub-Programme 1: Sector Institutional Policy
 institutional review of MAFFF
 work-shopping of the main findings and recommendations with key Government officials
and national stakeholders
 Institutional Change Paper for MAFFF to respond to the review’s recommendations
 support for MAFFF to implement the recommended changes
 provision of a one-off budget allowance to fund any recommended restructuring
Sub-Programme 2: Bio-Physical Policies
Soil fertility policy  interpret the soils tests completed under Programme 1 and prepare recommendations
 prepare and publish a soil fertility policy
 promote the new soil fertility policy through all types of media, and at events attended by
farming communities.
Agriculture water policy  interpretation of the hydro-geological review work and studies completed under
Programme 1
 recommendations on water allocation - for domestic and agricultural uses;
 gaining approval in principle from Cabinet for changes to Tonga’s water use legislation
 drafting and publishing a new water policy
 promoting and explaining the new policy to all citizens who rely on under-ground water
for domestic and livestock watering purposes
 updating NRM and climate change adaptation strategies
Sub-Programme 3: Export and Import Policies
 regular surveys of how the current export/import policies are impacting on the two sub-
sectors (export and import)
 regular updating and publication of policies
 on-going promotion of updated and relevant policies to exporters and importers
Sub-Programme 4: Land and Rural Finance Policies
Land policy  feasibility study of expanding the Toutu’u land sharing system to longer-term crops ie
tropical hardwoods to enable an expansion of Tonga’s forestry industry
 monitor the impact of current land use and allocation policies on sustainable agriculture
production, followed by recommended changes and promotion of new/revised policies, if
required
 TASP Implementation Coordination Unit (TASPICU) to advise Government of land access
and intensity of use issues
Rural finance  ongoing monitoring of the current results from farmer and exporter use recommend, when
required, changes in rural finance policies and support services (in the event of changes,
promote these to ensure that all categories of borrowers are aware of new opportunities to
access rural finance)
 practical training for farmers and small exporters on how rural finance systems work, how
to prepare and present simple business plans and how to manage cash flows
Sub-Programme 5: International relationships
 monitoring the status of international relationships - with major donors and export
recipient countries
 preparing (if required) and promoting papers/reports on recommended changes to
Tonga’s position in the “world of international trade”
Sub-Programme 6: Compliance and regulations
 monitoring and reporting on compliance with international regulations and obligations
 propose solutions if Tongan regulations are hindering sectoral development and export
growth
 an allowance for unforeseen costs as Tonga’s agriculture sector changes in response to
international factors
Sub-Programme 7: Quarantine
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Programme 2: Enabling environment
 assist MAFFF Quarantine in achieving its twin functions of keeping export-pathways
open and preventing new pest and diseases from entering Tonga
Sub-Programme 8: Industry organisations
 general one-off funding support for meetings and promotional events
 business training for key industry representatives
 planning and running industry-specific field days and learning events
Sub-Programme 9: Market information
Domestic market  comprehensive database of commodities, varieties, quality standards and weight based
unit prices
Export market  expand coverage of monthly publishing of export commodities price data to other
commodities (vanilla, kava, frozen commodities) and the Vava’u international port
 information dissemination via major newspapers, MAFFF district and industry
organisation offices, and phone, email or SMS enquiries
Sub-Programme 10: Agro-meteorology
Agricultural  a new technical assistant position within the Tonga Meteorological Service to establish
meteorology capability an Agro-Meteorology Program
 training workshops to ensure wider understanding of agro-met knowledge and
information

Data, knowledge and  dedicated agro-met stations to support improved agricultural decision making
information  targeted research to support improved agro-met advice and decision-making
 Tonga-wide database of traditional knowledge and indicators relating to climate linked
with modern weather and climate forecasting
 relevant agro-met information and communication services including a mobile phone
service

Description of Programme 3 by sub-programme


The three specific objectives related to the sub-programmes listed below are to: (i) improve farmers’ knowledge and
practices of natural resource management, and diversified crop,, livestock, and handicraft, production systems; (ii)
revitalize Tonga’s farming future and encourage young farmers to return to the land; and (iii) support farmers and
handicraft producers to produce products which are marketable in local markets, can be valued-added, and which
contribute to food and nutritional security.

Programme 3: Sustainable livelihoods and healthy food


Sub-Programme 1: Farmers’ knowledge and practices
 Development of Farmer-Friendly Resilient Farming Guidelines
 10 champion farmers and Village Resilient Agriculture Demonstrations (VRADs)
 Design and Implementation Village Resilient Agriculture Plans (VRAPs)
Sub-Programme 2: Young people in agriculture
 Feasibility Study of Tupou College Upgrading
 Development and Operation of a VRAD for students
 8 Learning and Production nodes
 Dedicated Learning Centre - Tupou’s disused abattoir
 Student Awards and Graduate Support Packages
Sub-Programme 3: Saleable agriculture products – core of TASP
 1,762 Farmer Field Schools (FFSs) for 100 Farmer Learning Groups (FLGs) and 88
Handicraft Learning Groups (HLGs)
 Printing and Distribution of Technical Brochures
 Contestable Learning Grants for FLGs
 Matching Grants for FLGs farm investment

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 Matching Grants for Women Handicraft Materials Farmers for production investment
 Short Value Chains for Local Products
 Feasibility Study and Matching Grants for Farm Access Roads, Livestock Water
Supplies, and Micro-Irrigation Systems
 Cross-visits to Vanuatu i.e. Santo Island farmers about community organisation and
planning, climate resilient agriculture practices, agriculture education in schools, and
rural training
 Support for Church to Assist Farmers

Description of Programme 4 by sub-programme

The bulk of TASP support has been focused on the smallholder sector and the domestic agriculture economy, TASP
supports logical recommendations for value chain development in Tonga. Tonga continues to import considerable
volumes (and value) of food mainly animal products (meat) and vegetable products, including fresh vegetables. There is
potential for replacement of imports of selected, widely-consumed food crops, and also for the seasonal export of
products such as potatoes and onions.

Programme 4: Sustainable Economic Growth and Foreign Exchange Earnings


Sub-Programme 1: Export sales
 Study of national forestry industry, export shipping requirements, farm to pack house
access constraints
 Training for all stakeholders: value chain and business training, post-harvest practices
 Technical support for value chain development
 Financing value chain development
 Support for service provision
 Investment promotion
 Infrastructure: Improvements for EU-Stabex wharf facility, feasibility study for a new pack-
house in the Eastern Districts of Tongatapu
 Private sector collaboration: establishing Tongan Agribusiness Association
 Priority products for export: watermelon, beans, vanilla, squash, value adding
Sub-Programme 2: Import replacement
 Training on Domestic Markets and Import Replacement: train potential investors in how to
review opportunities in domestic markets for import replacement products, prepare
production, marketing and financial plans, present business cases to bankers and potential
investors
 General Support for the Livestock Industry: adaptive research on pig and poultry
production, the introduction of new sheep breed genetic materials, support to improve
sheep flock management, a study of village-level, livestock-based production systems
 Promising Value Chains: vegetable import replacement, animal feed mills for poultry
production, beef raising and domestic processing, options for mobile slaughter units for
cattle and pig

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5 Strategic Objectives and Expected Results

Goal Increase and sustain resilient Target by Year 5


agriculture livelihoods
Subsistence- Develop diverse,
Production- Commercial - Increase and sustain
climate resilient farming systems  5% annual growth in
oriented rural incomes with rising exports
for food/nutritional security and rural incomes to
and import substitution T$9,177
improved livelihoods
 10% annual growth in
vegetable exports to
Establish climate resilient agriculture 15,590Mt or T$19.7m
Cross- Improve enabling environment
system to preserve key natural (institutional/service capacity, policies on  10% annual decline in
cutting resources (healthy soils, sustainable soil/water, exports/imports & land/rural meat imports to
themes water, diverse systems, adaptive finance, international relations, regulations, 4,600Mt or T$22.8m
communities) industry organisations, market information)

Figure below show the inter-relationships among the four programmes and strategic objectives framework, with
Programmes 1 and 2 as cross-cutting themes supporting the two production-oriented Programmes (3 and 4).

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TONGA AGRICULTURE SECTOR GOAL

Programme 3: Sustainable Livelihoods and Healthy Programme 4: Sustainable Growth and Foreign
Food. Strategic Objective 3: To develop diverse, Exchange Earnings/Savings. Strategic Objective 4:
climate resilient farming systems for the Kingdom’s To increase and sustain rural incomes across the
islands zones Kingdom

Specific Objectives: Specific Objectives:


(i) Farmers have the knowledge and technology (i) Sales of exported agricultural products are
required for climate resilient farming systems increasing
(includes women in agriculture, natural resource (ii) Tongan-produced agricultural products are
management, and diversified crop and livestock replacing imported products
production systems)
(ii) Young people see a future in agriculture, and
are engaging in the sector
(iii) Farmers are producing products which are
saleable in local markets, can be value-added,
and contribute to food and nutritional security

Cross Cutting Themes: Programmes 1 and 2

Programme 1: Climate Resilient Environment. Strategic Objective 1: Establish Climate Resilient Agriculture
Systems. Specific Objectives: (i) Healthy Soils; (ii) Secure and Sustainable Water, (iii) Diverse Farming Systems, and
(iv) Adaptive Communities

Programme 2: Enabling Environment. Strategic Objective 2: Improve the Enabling Environment: Specific
Objectives: (i) Service Delivery and Institutional Capability (ii) Bio-Physical Policies/Legislation, (iii) Exports and Imports;
(iv) Access to land and Finance (v) International Relations, (vi) Compliance & Regulations, (vii) Quarantine Services, (viii)
Support for Industry Organizations; (ix) Market Information and (x) Agro-Meteorology

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6 TASP Implementation Arrangements

A new TASP Implementation and Coordination Unit (TASPICU) will be set up within MAFFF to assist and coordinate
implementation of TASP activities within the 6 existing Divisions of MAFFF as well as externally (e.g. setting-up weather
stations by Tonga Met). It is envisaged that MAFFF’s Corporate Services Division would absorb the functions of TASPICU
after 5 years.

TASP Implementation
Quarantine Division
Extension Division

(member of ASGC)

Corporate Services
(member of ASGC)

(member of ASGC)

(member of ASGC)
(member of ASGC)
Research Division

Livestock Division

Forestry Division

and Coordination
Deputy-Director

Deputy-Director

Deputy Director
(member ASGC)
(member ASGC)

Deputy-Director
Deputy Director

Deputy-Director

Unit Manager
Implementation of specific TASP activities

TASPICU is a small unit within MAFFF comprising of a


Manager and Assistant plus a small secretariat staff to
facilitate funding applications. A member of ASGC, the
Manager will also work closely with the Deputy-Directors and
Assistant
CEO of MAFFF to enable and monitor implementation of
Manager
TASP activities within and outside MAFFF. Reporting on
implementation of TASP activities will be made regularly to
ASGC.

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7 Budget and timing
The first five-year phase of the TASP will cost T$42.169million, with 34% or T$14.498 million allocated to Programme 3
(the “action” Programme which focuses on smallholder agriculture). The 30% or T$12.720 million for Programme
Management for a stand-alone TASPICU, which includes costs associated with the establishment, staffing and operation
of the island-based offices, will be revised after the MAFFF institutional review is concluded.

TASP BUDGET REQUIREMENTS

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