4.1 Improvement of Production
4.1.1 Quality
1) Implanting and farming techniques
In order to improve the quality of Mabe pearls, the consultant recommends to improve the following aspects of nuclei implanting technique currently used:
2) Environment
Exchange of the water in Neiafu Bay is entirely blocked by the present causeway built on the Ahanga Passage between Neiafu and Pangaimotu. Since the pollution by human activities in Neiafu Bay seems to be increasing every year, there is an urgent need to improve the causeway by enlarging and deepening the present channels and making additional channels. Otherwise Neiafu Bay will no longer be a spat-collection ground of Mabe oyster in the future. Meanwhile, there is also a need for public campaigns, also among yacht people, to minimize water deterioration in the bay.
4.1.2 Production method
1) Spat-collection
Improvement towards mass-spat production is the top priority for the present Mabe pearl farming programme in Vava'u. In order to increase the spat collection rate per collector, the consultant recommends that each collector be covered by a fine-mesh bag such as an onion bag. This method will enable holding spats or juveniles dropped off the collector, and the onion bag itself is a good material for spat collection.
The timing of spat collectors deployment should be decided by scientific approach rather than by intuition. Planktonic larvae of Mabe oyster can be sampled periodically by a plankton-net with 80 micron mesh-size and its motivation stage can be identified by a microscope. It takes about one month at 27°C for the swimming larvae to reach the spat stage, the size of which is 250–270 micron. Since the microscope stored in the Vava'u Fisheries Station was out of use, SPADP overhauled and returned it to the station. It was required for the station to set up a routine work of this plankton survey especially during the summer time, i.e. from December to March.
2) Grow-out
In order to reduce the first critical mortality period after collection out of the spat ropes, it must be fully understood that the juveniles should be harvested by cutting their byssuses with a sharp knife or a pair of scissors. Pulling out by hands would damage byssal gland of juvenile and this practice should be abandoned.
Mesh size of the nursery baskets for juveniles should be properly selected, i.e. not too small and not too big, since if it is too big many newly collected juveniles would drop out of the baskets.
It is strongly advised that the baskets should be regularly washed to remove hauling matters that block their mesh. It is also important to make periodic inspections of the baskets to control predators such as parasite snails, flatworm, epiphytes, sponges, fish, etc. And to check whether the nets are damaged or broken. It is necessary to make frequent size-sorting of juveniles to avoid a dispersion of growth so that the baskets can always contain the same size-group of juveniles.
3) Pearl production
Since the finest quality of Mabe pearls is being produced in the mouth of Neiafu Bay, it would not be necessary in view of operational costs and security aspects, to culture pearls at the early stage of operation far from the main town.
According to the results of pearl quality assessment, the consultant recommends to make a culture period for 1.5 years.
4.2 Development Concept and Strategy
As clearly stated above, the potential of pearl farming industry development in Vava'u is considerably high. To promote the development of such new national industry, the mission would recommend to the Tongan Government to take the following into account:
4.2.1 Understanding of role of aquaculture development
Pearl farming industry would benefit directly to the national economic development by earning foreign currency as well as for generating new income source to the people of Vava'u. The mission, however, insists that aquaculture development in the coastal zones could also benefit as a means of coastal fisheries resource management. It is already proven in the Okinawa islands that aquaculture development is a significant contribution to maintenance of coastal fisheries resources. The fishermen would not need to go poaching if they can count on an increased income from aquaculture production, and would likely opt to accept the restrictions of fishing.
4.2.2 Economic impact
As calculated earlier, total earnings from Mabe pearls are estimated at over US$7.5 million. This figure does not look low in comparison to that of other pearl producing islands. The Cook Islands, for instance, anticipates a total wholesale value of around NZ$12 million (US$8.5 million) by the end of 1997. If black and/or silver round-pearls are produced in the future in Vava'u, it will rise up greatly. A major export product of the country is “fruits and vegetables” mostly of squash and vanilla beans, which earns A$12.6 million (1991). The fisheries sector, the major commodity of which is fish earns A$1.6 million (1991) of export. Compared to these commodities, pearl has potential to become the major export commodity of the country. It might possibly share over 5% of the national GDP (US$138 million, 1992).
The pearl farming industry will have an impact on the other activities such as tourism, craft, reinvesting, prevention of rural exodus to Tongatapu, etc. As it is happening in French Polynesia.
4.2.3 Pearl production development: concept, policy and strategy
Pearl farming still stands on a probability of production of the finest pearls. It means that the success of a pearl farming industry depends greatly on a high production of mother-of-pearls. This is the time to integrate systematically all accumulated information obtained through the various experiments conducted so far in Vava'u on Mabe farming.
1) Quality
Recently, Japanese pearls tend to be heavily processed, for instance, bleaching and dying surface of round-pearls, and sanding and coating on inner layer of half-round pearls. Its colour is dyed to copy that of silver pearl (Pinctada maxima) which is the most expensive pearl at present among all pearls. These processed pearls change quality in a short time compared to the pearls produced in the past. Japanese pearls may loose their value as jewellery in the future. This tendency spoils the real value of pearls and it might affect also the future of the Japanese pearl industry. Hence, the consultant strongly recommends that Tonga should not follow the same approach of the Japanese and should aim to produce a unique Mabe as a bland of “Tonga Mabe pearl”, i.e. thick yet lustrous pearl of natural Mabe colour with minimal necessary processing.
The consultant also strongly recommends to look into a production of Mabe round-pearls in Tonga as it is not yet commercially produced in the world.
In the long term, Vava'u would have the possibility of other types of pearls in addition to Mabe pearls, i.e. black and silver (or white) round-pearls, because such round-pearls are far more expensive at the markets than half-pearls. It may be, however, judicious to give a priority to Mabe pearls for the moment in Tonga.
2) Production method
A total area of pearl farming grounds is entirely dependent on the amount of spats produced. Even if a sufficient number of spats is available, the capacity of pearl production might still be limited by the areas of farming grounds. It is mostly important to produce a plan of farming grounds in all Vava'u waters which will enable to establish a production plan (industry development plan) with appropriate stocking densities. The consultant recommends to draw up an exact farming ground flow chart at each site as proposed in Table 3.
It will be necessary for the government to control seed production in the Neiafu Bay. Numbers of spat collectors and juveniles harvested should be monitored, or better registered.
For long-term sustainable production, it will be necessary to set up a hatchery for producing spats as it is difficult to stabilize production only depending on the natural spats. Black-lip and silverlip pearl oysters should also be a target species for the hatchery production. At present a market of white round-pearl produced from silver-lip pearl oyster is quite strong i.e. a high demand and the highest price in the international markets particularly among Western people. Silver-lip pearl oyster is, however, not distributed yet in Tonga. Such species should be produced in the hatchery as is commonly practiced in Australia and South-east Asian countries. Thus, the establishment of the pearl oyster hatchery in Vava'u would be most significant not only for Mabe oysters but also for such black and silver-lip pearl oysters. Juveniles of silver-lip pearl oyster can be imported and grown in Vava'u, then reproduced in the hatchery after a couple of years. The best source of juveniles is from Broome, Western Australia, because of hits high quality.
3) Post-harvest
(1) Marketing
Tonga Mabe pearls should be marketed in Tonga as well as neighbouring countries such as Fiji, Samoa, Hawaii, and perhaps New Zealand and Australia, in order to establish Tonga's bland and to strengthen local business capability. In the meantime, the local pearl processing capability should be developed.
With expansion of production and improvement of quality, Tongan Mabe pearls could target the international markets together with Mabe round-pearl as well as other black and silver roundpearls produced in Vava'u.
Since Mabe pearls production potential is quite high, Tongan Mabe pearls will likely affect the market price if the production in Vava'u is boosted to full scale. To avoid a drop in price, it will be necessary to establish an appropriate marketing strategy prior to targeting the international market.
(2) Processing
All half-round pearls generally require processing prior to sale. A typical processing method is as follows:
After the above processing, jewellery decorators apply a metal strip such as gold or white gold around the joint of sealing.
There are two options for marketing of round-pearls: before or after processing. Since in Tonga processing is of course not yet developed, it would be necessary to send pearls out of the country for processing or selling them without processing. The consultant recommends that Mabe pearls be processed overseas and re-imported to Tonga for marketing to ensure establishment of a Tongan bland. Local processing capability should then be developed at short-term for the sake of value addition.
The consultant recommends that the pearls mixed with gold colour be not processed with the above method. When these pearls are cut off from the shell it would be better to cut them with a certain fringe of shell around the pearl. These can be decorated with the original nacreous colour of shell around the pearl. Only the pearls which are of whitish Mabe colour should be sent for processing.
There are alternative processing companies in the South-east Asian countries such as Thailand or Hong Kong rather than Japan, as the processing cost is fairly high in Japan. If further decoration with metals is desired, it is recommended to send pearls to Italy for design, which is outstanding in this industry.
The processing half-pearl should be established locally in Tonga. Since, fortunately, handcrafting of black corals and whale bones is already developed at a certain level in Tonga, it may not be a difficult task for Tongan people to undertake the Mabe processing in the future under supervision of technical experts. The technique might possibly be transferred from Japan. It may take several months to master the techniques.
Shells, after having removed the pearls, might be sold to South-east Asia for in-lay industry. However, since the price is low, it is recommended that the shells be used domestically for handcraft materials. Since the base of Mabe shell is particularly thick, it can be utilized for carving. The in-lay industry could be developed in the future in Tonga with an arrangement of a joint-venture with Asian countries.
4) Establishment and management
The government should understand that pearl farming industry development requires a longterm approach. It is impossible to formulate such industry in a short period. Time is necessary to build up a base for the future development.
In general, small entrepreneurs usually fail in the pearl farming industry as pearl farming requires a high level of investment. It takes three to four years to start to earn a net income. It requires some additional capital investment to continue should the first operation fail for unforeseen causes such as natural disasters (cyclone). In French Polynesia, about 80% of pearls are produced only by two enterprises. The first pearl farming establishment in Vava'u must be carefully selected regardless whether it is a government corporation or private company. The total capital investment that may be required is about US$4 to 5 million to establish a new pearl farming industry. However, it does not need all the investment at the beginning, and it can be developed gradually.
Since pearl farming requires high level of know-how in management and production, it will be necessary to arrange a joint-stock company with a foreign pearl farming company from the initial operation, or to employ a farm manager as well as technicians. In the former case, it will be vital to arrange a regal privilege towards protecting profits of the foreign partners. The companies generally request a government's guarantee for a long-term operation probably for 20–30 years. In the latter case, the capital investment must be arranged locally. A constrain will be in the recruitment of such skilled manpower. It will not be an easy task to find experienced free-lance managers and technicians.
There is a need to clarify the advantage of a joint-stock company. Initially, profit will flow out of the country. In the long term, however, the joint-venture will be beneficial to strengthening the national technological know-how and to building up a base for development of national power.
All Mabe pearl farming of the proposed farming grounds in Vava'u could be adequately operated by one company. In case of one company, however, there would be no technique or quality improvement as there would be no competition. Hence, the consultant recommends that in the early stage one company operates, later joined by another one. There are two options of the pearl farming management in Vava'u:
In the case of the private sector, it may be essential to set up a joint-venture with an overseas company who has pearl farming know-how, as the local private sector has neither techniques nor capital. In the case of a national corporation, the joint-venture might not be necessary as the government may be able to allocate the capital investment probably through the World Bank, the Asian Development Bank or other sources. In such case, however, skilled managers and technicians would have to be recruited, as mentioned above. However, the consultant would recommend in this case that the national establishment be joint-ventured with the pearl farming company overseas in terms of securing pearl farming know-how and marketing opportunities. The consultant recommends that the bank loans might be considered after the initial operation is set up and proven satisfactory to a certain extent.
The consultant is reluctant to recommend the former view as pearl farming usually get out of control if it is operated by the private sector alone. The national fishing company “Sea-star” might possibly be taken as a good model for the pearl farming establishment in Vava'u.
The investment and the management should be clearly separated, otherwise the company will be obliged to absorb unnecessary employment costs. The company should include all activities from production to processing and marketing.
Village people might be involved as employees of the companies or in the manner of consignment farming.
5) Legal Infrastructure
There are two categories of legal arrangements required for the pearl farming. One is in production and the other is in investment aspect.
In order to clarify the ownership concept as well as to utilize the waters at high level of production, it is recommended that the pearl farming zones be firstly settled and those be prohibited for other fishing activities. Such exclusive rights need to be legalized as soon as possible, then an introduction system for leasing the rights would better be taken into account. Pearl farming should be restricted only in the farming zones. Illegal operation may cause troubles for navigation and with other fishing activities as well as allocation of spats. Ten years might be a reasonable licensing term.
6) Research
It is urgently recommended to carry out a feasibility study on the establishment of an aquaculture research centre in Vava'u. This centre would play an important role in reducing development risks. The centre should be engaged in the following activities:
4.3 Development plan
4.3.1 Immediate action
The mission recommends the Tongan Government to take the following actions:
4.3.2 Proposed project
In order to prepare for a steadily phased development, the mission proposes to carry out a pilot project as follows:
Phase I (Establishment of a pilot farm, 1997–2000)
| Step | Year | Target | Responsible bodies |
| 1 | 1997 | - Mass spats collection by scaled-up spat collectors | Fisheries Department (FD) |
| - Preparation towards legalization of exclusive pearl farming areas | Cabinet, Vava'u Municipal Council, other related agencies | ||
| 2 | 1997/98 | - Preparation and registration of company | FD, Company, other related agencies |
| - Large-scale grow-out | Company (The company sets up large-scale grow-out rafts/long-lines and purchases juvenile oysters from FD) | ||
| - Feasibility study of hatchery | FD | ||
| 3 | 1998 | - Grafting starting from Sept. | Company |
| - Set-up 2nd large-scaled spats collectors | Company and FD (joint management) | ||
| 4 | 1999/2000 | - 1st Harvest and marketing after processing | Company |
Phase II
| Step | Year | Target | Responsible bodies |
| - | 2000< | - Completion of a legislative plan of all pearl farming lease-allotments | FD |
| - Formulation of seed production plan | FD | ||
| - Expansion of the farming sites based on the legislative plan | Company | ||
| - Formulation of pearl grow-out system, e.g. by a trust-farming with contracted farmers or by a direct-control of the company - Set-up of hatchery | Company | ||
| - Set-up of processing plant | FD and company (joint operation) Company |
