Program B1: Product Development Services

Objectives

• Improve quality and increase quantity of manufactured products;

• Develop new products (Increase the number and type of manufactured products);

• Ensure the safety of products especially products for consumption;

• Ensure manufacturing of products for export meets all export requirements; and

• Improve packaging and labeling to be more attractive, and to meet requirements of importing countries.

Measures

• Number of different local products available for local consumption

• Number of local products that meet export standards for quality and reliability

Background

• As part of an overall strategy to provide income-generating opportunities for the people of the Marshall Islands, the Ministry will provide support for the development of manufactured and processed products for local consumption and also for export.

• The efforts will be focused on providing training, workshops and other information to encourage the development of new products, and to improve the production of existing products, especially for small cottage-scale operations.

• Products to be developed may include handicrafts, processed foods such as preserved fish and Pandanus, traditional medicine such as the Noni juice and other products made from local raw materials.

• This program is one part of the overall strategy of the Ministry to increase consumption of domestic products, thus decreasing dependence on imports and increasing the self-reliance of Marshallese families and communities.

Strategies

• Business development; encourage small and medium enterprises in manufacturing/ value-added production;

• Facilitate access to training in manufacturing technology, food production, product development, HACCP and packaging and labeling;

• Target training for small cottage-scale production;

• Have a food technologist/ HACCP expert in house;

• Identify local products that can replace imports for product development;

• Develop a showcase of Marshallese and Pacific Island Products;

• Ensure products meet labeling requirements of importing countries.

Key Stakeholders and Partners

• Handicrafts Association

• Noni Juice/ Arno Oil company

• Tobolar

• MIMRA

• WAM

• WUTMI

• Farmers’ Associations

• FAO

Possible Issues/ Constraints

• Previous attempts to develop new products have tended to look at too many products at one time.  A lesson learned is to focus on a small number of product types and to develop skills in that area.

• Local trainers are preferred, but are not experienced in product development and high-quality presentation.

Program B2: Domestic Marketing Services

Objective

• To increase domestic products sold domestically consumption of domestic products

Measures

• Value of domestic products sold domestically

Background

• Development of a domestic market is essentially increasing the demand from domestic consumers for locally produced goods and services.  The development of a domestic market for domestic products will help achieve several development objectives for the Marshall Islands including providing income for producers and manufacturers of local goods, reducing the dependence on imports, and improving the health of the community through the consumption of locally-grown healthy foods.

• There are various strategies for the development of the domestic market.  It is important to ensure that the production and availability of local products grows alongside the demand that will be generated by this program.

• This means increasing agricultural production and also value-added products, and importantly, ensuring that these products have transport to bring them from their place of origin to the market, which will primarily be in the urban centers of Majuro and Ebeye.

Strategies

• Facilitating Access to Market

• Facilitate the establishment of local Farmers’ Markets on Majuro and Ebeye (see Special Program: Farmers’ Markets)

• Encourage investment in transportation

• Facilitate transportation from outer islands to urban centers through negotiation with transport companies

• Market Research

• Understand the local market through market research; find out why people prefer imported products and respond to that

• Active Promotions

• Hold local “Made in the Marshalls” trade fairs

• Promote “Be Marshallese…. Buy Marshallese” / “ Juon Ri-Majol…. Wia Menin Majol”

• Have all information on products available

• Be a role model- have coconuts, local produce as a feature in all R&D functions

• Trade Policy

• Develop policy and recommendations on pricing of local products

• Utilize allowances for “infant industries” and “negative lists” under the Pacific Island Countries Trade Agreement (PICTA) to encourage local industry

Key Stakeholders and Partners

• Local business/ retailers

• Farmers, manufacturers, producers

• Laura Farmers Association

• Handicrafts Association

• Transport operators, AMI, Ministry of T&C

• Chambers of Commerce

• Forum Secretariat, PIC, PITIC(Aus, NZ)

Possible Issues/ Constraints

• Lack of experience in market research and survey design.
  Capacity for policy development and economic assessment is limited within the Ministry.

Program B3: International Marketing Service

Objective

• Increase exports of niche/ value-added products

Measures

• Number and type of products being exported

• Quantity and value of products being exported

• Profitability of products being exported

Background

• While the development of an export market for Marshallese products has been a priority for R&D, this strategic planning process allowed us to rethink its strategic importance to the Marshall Islands.  As a result, the overall emphasis of this plan is on domestic product and market development, and import substitution.

• However, it remains that the Marshalls has some unique and important products that require the development of a niche international market.  These products currently include handicrafts and Noni juice (and other products made from Noni) and may also include other products over time.

• The Marshall’s primary exports currently are copra oil and processed fish.  The strategic plan for R&D does not focus on fish, leaving that as the primary responsibility of MIMRA.  Copra oil prices have been consistently low and it has not been profitable recently as an export product (once subsidy is taken into account), therefore R&D are redirecting efforts on Copra into maximizing value domestically (see Special Program: Coconut Value Chain Development).

Strategies

• Market Research

• Identify Markets

• Contact Management – ensure that regular and professional contact is maintained with international buyers or potential buyers;

• Understand the market through market research; find out what the market requires in terms of quality, quantity and type of product.

• Active Promotions

• Attend international trade fairs

• Have all information on products available

Key Stakeholders and Partners

• Local business/ retailers

• Manufacturers, producers

• Handicrafts Association

• Pacific Business Centre, UH Honolulu

• Key contacts (for example Mary Lou Foley)

• Forum Secretariat, PIC, PITIC(Aus, NZ)

Possible Issues/ Constraints

• Export of products, particularly food stuffs and products for consumption, will only be
  possible if the RMI meets requirements in terms of food safety, quality assurance and
  labeling requirements.

Program B4: Trade Facilitation Services

Objective

• To ensure export products meet international requirements

• To have smooth and efficient export permit processes

• To facilitate trade by ensuring RMI meets import and export standards

Measures

• #  and type of products that meet export requirements

Background

• Trade Facilitation Services will essentially provide support to manufacturers and exporters
  in meeting import / export requirements. This will include compliance of manufactured
  products with international safety standards (Codex Alimentarius and HACCP), iss uance
  of certificates of origin and streamlining of import and export documentation processes.

Strategies

• Export certificate of origin (Ensure pest list is updated);

• Recruitment or development of a sufficiently skilled person;

• Become a member of Codex Alimentarius ;

• Utilize membership of Codex Alimentarius to gain access to training;

• HACCP and Codex Alimentarius training to manufacturers ;

• Improve trade documentation, issuing import/ export certificates, certificates of
  origin; and

• Ensure all necessary information about products is documented. Plans to
  develop some processed food and medicine products means the Quarantine
  service will need to develop capacity in HACCP certification to ensure the quality
  and safety of exported food products . 

Key Stakeholders and Partners

• Food and Nutrition Task Force (Ministry of Health)
• Customs
• Transport Operators
• MIMRA
• FAO
• Codex Alimentarius
• WHO
• USDA
• Importers/ Exporters
• WTO

Possible Issues/ Constraints

• This program will need highly qualified people skilled in food safety and quality assurance.  The recruitment of such a person may take several years.  (See Program E1: Human Resource Management).