Grog exports increase from 2015 to 2019 but are there signs of oversupply and a reduction in retail price

Grog exports increase from 2015 to 2019 but are there signs of oversupply and a reduction in retail price

By Vijay Narayan
12/05/2020
Pyramids of Kava at the Suva market [Image:Pinterest]

Grog exports have continued to increase from 2015 to last year however there are also indications that grog farmers are now getting $50 to $60 for a kg of grog compared to more than $120 a kg after Tropical Cyclone Winston in 2016.

People are also wondering whether retail prices will fall locally now since prices have dropped.

After TC Winston, it was highlighted that farmers started charging more than $120 for a kg of grog and the retail price for a kg shot up to $140.

The price for a $5 grog pack then went up to $14, and the increased price has stayed until now.

The feedback from the farmers is that they are only being offered $60 or less for a kg by the middlemen. Some farmers in Kadavu say the highest they are being offered for grog is $70 to $80.

It has also been stated that there is currently an oversupply of grog since sales have dropped by almost 50 percent. The prices had earlier gone up based on increased demand and low supply.

Grog exports stood at $8.9 million in 2015 and $14.1 million in 2016. The projected exports was valued at $32.5 million in 2019, $30.8 million in 2018 and $19.7 million in 2017.

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