27 Jun 2002

Vanuatu export kava industry continues to decline

11:37 am on 27 June 2002

Vanuatu's kava export industry has suffered another setback as France joins the growing number of European countries refusing to import kava-based products.

The President of Vanuatu's Chamber of Commerce, Joseph Jacobi, says kava exports are now restricted to two Pacific countries.

European Union countries banned the import of products containing kava extracts because of a German health report alleging that kava caused liver diseases.

After the report, Canada, the US and Australia issued warnings against the consumption of kava-based products.

Mr Jacobi says Vanuatu is losing almost 4 million US dollars of export revenue a year, forcing some growers out of business.

"The market has dropped. The farmers are not harvesting. Some exporters have closed down. The kava gets a very low price now. You can get kava from some islands for very low price, maybe one New Zealand dollar maybe two dollars a kilo. Before it cost four New Zealand dollars a kilo."

Joseph Jacobi in Vanuatu