Agricultural supply response in Fiji

The agricultural sector is a central part of the Fiji Islands economy. Policies to alleviate poverty and stimulate economic growth need to be based on a sound understanding of the local agricultural systems involved. This understanding needs to extend to the responsiveness of production to price changes. To date there have been no published quantitative estimates of the responsiveness of agricultural supply in Fiji to output price changes. In this paper we present a set of highly disaggregated supply elasticities covering many of the major food crops produced and consumed in Fiji. These results have been derived from a stated intention survey of rural households. The results appear consistent with the dual nature of Fiji’s agricultural sector and show that agricultural supply response in Fiji is own‐price elastic for the ten commodities analysed.