Category: Economy

While vanilla and noni show resilience, the pearl sector suffers a historic collapse, dragging down French Polynesia’s foreign trade.

A Precipitous Drop for Cultured Pearls

The latest data from ISPF, based on figures from the Customs Directorate, reveals a sharp decline in local exports in the fourth quarter of 2024: down 62% in value compared to late 2023. For the full year, the drop reaches 47%, a major blow to Polynesia’s economy.

The pearl industry, a historic pillar of exports, is the primary driver of this downturn. Sales of raw pearls have collapsed: -69% in value and -49% in volume. The average price per gram now stands at 700 F.CFP, in free fall (-39% year-on-year). The annual figures are equally alarming: -59% in value and -52% in volume.

Vanilla and Noni: Rare Bright Spots

Amid the bleak outlook, a few agricultural products buck the trend. Vanilla is experiencing a spectacular rebound: +76% in value and +50% in volume, with prices per kilo reaching 59,000 F.CFP. Noni follows a similar trajectory (+64% in value, +50% in volume).

Meanwhile, other sectors struggle: copra oil shows modest growth in value (+33%) but declines in volume (-21%). Monoï and mother-of-pearl plummet by 41% and 26% in value, respectively.

Imports: Overall Stability, But Sectoral Strains

On the civilian imports side, the trend is stable, but disparities emerge across sectors. Capital goods post strong growth (+26% in value), lifting corporate imports (+6%). Conversely, intermediate goods drop by 12% in value, despite higher volumes (+37%), driven in part by cement purchases.

For households, the decline is moderate (-2% in value, -3% in volume), but the automotive market nosedives (-30% in value).

Energy: Falling Prices, Rising Consumption

Petroleum product imports decline by 14% in value, despite a 14% volume increase. For the full year, their value edges up slightly (+3%), but the average price per kilo drops to 100 F.CFP, down 24%.

A mixed picture highlighting the fragility of Polynesia’s economy, still overly reliant on its pearls.

(Sources: ISPF, Customs Directorate)

The Tahitian pearl market is currently experiencing an unprecedented boom, with prices reaching 800 Fcfp per gram—a level not seen in over 15 years.

This dramatic increase stems from a combination of factors: a strong rebound in international demand and limited supply, a direct consequence of the pandemic.

According to data from French Polynesia’s Institute of Statistics (ISPF), the average price per gram has more than doubled in a year, jumping from around 300 Fcfp to 800 Fcfp. Industry professionals, such as Loïc Wiart, director of Poe Black Pearl, welcome this trend: “This is an unexpected but very welcome comeback.”

During the COVID-19 pandemic, pearl farming activity slowed significantly, leading to a sharp drop in production. While demand remained moderate at the time, it has now surged—just as available stocks have hit record lows.

The industry is celebrating this recovery but remains cautious. The rapid price increase could be followed by a sudden downturn if production accelerates too quickly. “There’s a risk of a yo-yo effect,” admits Wiart, “but current constraints—particularly the shortage of grafters and mother-of-pearl—should prevent overproduction in the short term.”

This revival presents a unique opportunity to revitalize Polynesia’s pearl industry. However, market stability will depend on careful production management and potential regulatory adjustments to prevent another crisis.

The Marine Resources Department (DRM) has launched an ambitious project to promote a circular economy by recycling plastic floats from pearl farming—a key industry for French Polynesia but also a major source of plastic waste.

In 2023, the DRM collected 6,000 floats in the Leeward Islands and Tuamotu-Gambier as part of a campaign to recycle pearl farming waste.

A Pilot Recycling Project for Plastic Floats

The main challenge lies in the durability of the floats, made from ABS plastic (acrylonitrile butadiene styrene), which is difficult to grind due to its toughness. However, the DRM has tested a shredding process to convert these floats into pellets—a method that could be adapted for other islands to facilitate local plastic waste management.

For now, a specialized shredder has been used, and grinding the floats significantly reduces waste volume. A single “big bag” can hold up to 40 whole floats, but once shredded, it can store the equivalent of 300 floats in pellet form, drastically cutting transportation costs and logistical challenges.

Local Impact and Recycling Potential

The DRM’s goal is to implement this shredding process directly on the docks of the concerned islands. This would reduce maritime transport costs while providing an on-site recycling solution. Additionally, reducing float volume could encourage more sustainable waste management among pearl farmers and other local stakeholders.

Pearl farmers are increasingly aware of the importance of recycling. According to Marcelle Howard, President of GIE Toarava, recycling these floats could not only meet the needs of pearl farmers but also supply other sectors, such as lagoon tourism, where the material could be repurposed—for example, in manufacturing urban furniture.

Future Prospects and Challenges

The pilot project has generated significant interest, particularly from a local plastic industry player monitoring its progress. ABS plastic, commonly used in car bumpers, could find new life in local applications if the pellets meet necessary technical standards.

However, the project faces a major hurdle: the recovery of the pearl farming market. The industry is currently struggling, and demand for recycled floats will largely depend on its revival.

Conclusion

This plastic float recycling initiative marks an important step toward establishing a circular economy in Polynesia. It demonstrates how the pearl farming sector can play an active role in environmental protection while developing practical and economically viable solutions for plastic waste management. The DRM continues to explore innovative approaches that could eventually transform waste into valuable resources for the community.

The Polynesian government, through the Marine Resources Department (DRM), has launched an innovative program aimed at enhancing by-products of pearl farming, with a particular focus on blister pearl production, also known as mabe in Japan.

This initiative seeks to diversify income sources for industry professionals by exploring new and creative uses for pearl oysters.

Blister Pearls: A Traditional Yet Innovative Product

Blister pearls are one of the earliest forms of cultured pearl products. They are created by attaching a half-sphere nucleus (typically made of plastic), often decorated with patterns, inside the shell of Pinctada margaritifera (the local pearl oyster). Through natural biomineralization, the oyster coats the nucleus with nacre, forming a pearl. Once the nacre has sufficiently developed, the blister pearl is harvested by cutting the shell. The plastic nucleus is then replaced with epoxy resin, and a nacre plate is added to finalize the pearl.

Program Objectives

The program is structured in several phases:

1. Professional Training: The first phase involved specialized training for pearl farmers in Takapoto, covering nacre sorting and blister pearl grafting techniques. This step is crucial to introduce farmers to the production process and equip them with the necessary skills for this alternative production method.
2. Harvest Monitoring & Analysis: A second phase included tracking and analyzing blister pearl harvests, both with and without decorative patterns. This helped determine the technical expertise required for production and identify specific challenges related to harvesting these pearls.
3. Dissemination of Best Practices: The program also involves creating educational technical guides to replicate the production process across other sites in French Polynesia. These documents will standardize methods and share acquired knowledge with a broader range of professionals.
4. Collaboration with the Handicrafts Department: Part of the project focuses on blister pearl commercialization, supported by the Handicrafts Department. This phase involves identifying different product grades, cutting, and setting pearls for market readiness.

Expected Impacts

Mastering blister pearl production could provide several benefits for pearl farmers:

• Improved Yields: Mabe production allows the use of pearl oysters unsuitable for traditional pearl farming, maximizing overall harvest utilization.
• Job Creation: The project could generate new employment opportunities for young local technicians and artisans, particularly in cutting, setting, and marketing blister pearls.
• Enhancement of Local Products: The goal is to add innovation and quality to local products, strengthening their position in the international market. This diversification would also help meet global market demands.

R&D for a 100% Bio-Sourced Blister Pearl

Alongside mabe production, the DRM is conducting research and development to create a 100% bio-sourced blister pearl, made from local and sustainable materials. This project could reinforce Polynesia’s ecological commitment and offer an even more environmentally friendly alternative to traditional pearl production.

Conclusion

This blister pearl enhancement initiative represents a significant opportunity for income diversification in French Polynesia’s pearl farming sector. It not only optimizes the use of local resources but also addresses growing environmental concerns while adding value for local producers. By combining innovation and tradition, this project could serve as a sustainable and economically viable model for the pearl farming industry.

The Territorial Audit Court’s (CTC) damning assessment of the Tahitian Pearl Association of French Polynesia (TPAFP) reveals systemic mismanagement of public funds and governance failures that undermine its role as the sector’s representative body. Here are the critical findings:

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1. Crisis of Representation

• Shrinking Membership: With only 117 members from 6 organizations (out of 349 professional licenses), the TPAFP fails to reflect the diversity of French Polynesia’s pearl industry.
• Legitimacy Gap: The association represents just 33% of eligible professionals, raising questions about its mandate to speak for the sector.

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2. Governance Breakdown

• Dormant Decision-Making: Rare general assemblies and infrequent board meetings paralyze oversight.
• Unauthorized Spending: Major financial commitments were approved without proper governance review, violating basic fiscal controls.

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3. Ethical Red Flags: Conflicts of Interest

• Self-Dealing Allegations: Procurement from companies owned by TPAFP board members circumvents fair competition.
• Lack of Transparency: No public disclosure of these transactions, eroding trust in financial stewardship.

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4. Questionable Spending Practices

International Activities

• Unjustified Subsidies: Public funds flowed to partner associations in Hong Kong, Japan, and the U.S. without clear performance metrics.
• No Competitive Bidding: Contracts awarded via direct selection, violating procurement rules for public funds.

Local Operations

• Budget Overruns: Mission expenses exceeded projections with no documented justification.
• Opaque Contracting: Preferential treatment for select vendors contradicts principles of equitable access.

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5. Urgent Reforms Demanded

The CTC mandates immediate action to:
✅ Broaden Membership – Ensure the association truly represents pearl industry stakeholders.
✅ Enforce Financial Controls – Require competitive bidding and independent audits.
✅ Eliminate Conflicts – Bar board members from benefiting from TPAFP contracts.
✅ Restore Transparency – Publish meeting minutes, budgets, and procurement records.

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6. Implications: A Sector at Risk

The report exposes a crisis of confidence in the TPAFP’s ability to:

• Safeguard public funds (436 million FCFP since 2014)
• Effectively promote Tahitian pearls globally
• Maintain trust among farmers and exporters

Without rapid reform, the TPAFP risks becoming irrelevant—or worse, a liability to Polynesia’s pearl industry.

Pearl farming, a crucial sector for the economy of French Polynesia, has been facing difficulties since 2019.

Export earnings from pearls have dropped by half, falling from 5 billion Fcfp in 2019 to just 2.5 billion in 2020, according to data from the Polynesian Statistical Institute (ISPF). This sharp decline, exacerbated by the pandemic, has highlighted several challenges, including a shortage of grafters.

For the past two years, Chinese grafters, who made up a significant part of the workforce, have been unable to leave their home country, leading to a decline in high-quality pearl production. At the Papeete market, pearl supply has been cut in half, causing tension among jewelry sellers. Heiani Riaria, a vendor, notes: *”Before, we used to buy up to 1,000 pieces, and now we only get 500. Prices have also doubled—pearls now sell for 500 to 1,000 Fcfp, compared to 250-300 Fcfp before.”*

Despite the reputation of Chinese workers for efficiency and affordability, there is an urgent need to train more local grafters. Fanny Yip, a jewelry store manager, emphasizes the importance of supporting and training local grafters to reduce reliance on foreign labor. “It’s essential to establish structures to better train and support our local grafters,” she explains.

In 2020, the number of producers dropped by 80 compared to 2018. Yet, despite the challenges, industry professionals remain optimistic. They are actively seeking solutions to revitalize this vital industry for Polynesia and hope for a brighter future for the “black gold of the sea.”

A recent report from the Territorial Audit Office (CTC), submitted to the Assembly, exposes the severe challenges facing French Polynesia’s pearl sector in recent years. The failure of the 2017 reform—which has struggled to deliver results four years after implementation—and the “alarming” environmental impact on lagoons have raised serious concerns about the future of this key export commodity.

As Tahitian cultured pearls mark their 60th anniversary this week at the Poe Ma’ohi trade show at Hilton Tahiti, the CTC’s detailed report (covering 2015-2021) highlights the sector’s growing difficulties. While pearl farming remains French Polynesia’s top local export (generating 8.6 billion Fcfp in 2014), revenues plummeted to 2.5 billion Fcfp in 2020 amid a severe economic crisis. The industry’s systemic issues can no longer be ignored.

The report traces pearl farming’s turbulent history: from its 1980s boom to the 1990s virus-induced crash, followed by a recovery peaking in 1999. Since that zenith, the sector has faced relentless decline, with export prices per gram collapsing from 1,710 Fcfp in 2000 to 472 Fcfp in 2019.

The 2017 reform—spearheaded by President Édouard Fritch’s government to shift from mass production to quality-focused output—has largely failed. Production quotas set in 2021 proved ineffective, public water concessions were allocated haphazardly, and one-third of producers (holding 1,300 hectares) have been inactive since 2017. The transfer of responsibilities to industry professionals and governance changes were similarly unsuccessful.

Environmental damage from pearl farming poses another critical concern, with waste accumulating for 40 years across pearl-producing islands. Takaroa and Takapoto lagoons have suffered particularly severe degradation, requiring costly remediation.

The CTC urges immediate action, recommending seven specific measures for 2021. President Fritch has pledged to launch a new sectoral policy by year-end, incorporating these recommendations. As Tahiti celebrates six decades of pearl cultivation, the industry now faces an urgent overhaul to ensure its survival and ecological sustainability.

The Marine Resources Directorate (DRM) recently launched a survey to assess the quantities of pearl shells stored onshore at Polynesian pearl farms. This initiative is part of a broader strategy to develop the pearl shell sector, aiming to find local solutions for valorizing Pinctada margaritifera shells, which are currently exported in bulk.

The DRM is exploring several avenues to transform this resource into high-value-added products, including:

• Using shell derivatives in agriculture (e.g., fertilizers or dietary supplements for laying hens),
• Incorporating shells into handicrafts,
• Establishing a local industry for nucleus production from powdered shell.

However, a major challenge remains identifying reliable and sufficient sources to supply these new value chains.

To address this, in late September, the DRM launched a survey to inventory shell stocks across French Polynesia’s 349 active pearl farms. Local pearl farming management committees are collaborating with industry professionals to compile precise stock data, with full estimates expected by October 26.

While pearl shells have been exported since the 1980s—generating modest income for producers—the DRM is now prioritizing local valorization over bulk exports to Asia. Between 2014 and 2020, Polynesia exported an average of 1,604 tons of shells annually, with 1,299 tons shipped in 2020 (revenue: 183 million Fcfp). The average price reached 141 Fcfp/kg in 2020, surpassing the 124 Fcfp/kg average since 2014.

Most onshore stocks consist of shells unfit for commercial sale due to defects or damage. Nevertheless, the DRM remains optimistic about developing more profitable and sustainable solutions for this local resource. The ongoing survey’s results will provide critical data to guide efforts toward more effective local valorization of Tahitian pearl shells.

Tahiti’s pearl industry is facing a severe crisis, marked by a dramatic drop in pearl exports—falling from 5 billion Fcfp in 2019 to just 2.5 billion in 2020. According to Mia Williams, president of the French Polynesia Small and Medium-Sized Pearl Farmers’ Union (SPMPPF), this alarming decline is largely due to the pandemic.

Export prices per gram have also hit a historic low, dropping from 600 Fcfp in 2018 to 270 Fcfp in 2020. Ferdinand Ching, a pearl dealer, explains that this price collapse is partly linked to declining pearl quality, attributed to factors such as lagoon pollution and overproduction.

The situation is further exacerbated by a critical shortage of grafters, a major challenge for local producers. The absence of Chinese grafters, stranded in China, has directly impacted production, leading to a sharp decline in pearl output. By 2020, the number of producers had also decreased by 80 compared to 2018.

Despite these challenges, industry professionals remain cautiously optimistic, emphasizing that resolving the grafter shortage swiftly is crucial to ensuring the survival and sustainability of French Polynesia’s pearl farming sector.

The pearl sector in French Polynesia, already weakened before the pandemic, went through a deep crisis in 2019 and 2020, marked by a sharp decline in exports and per-gram pearl prices hitting a historic low.
According to the latest studies published by the French Polynesian Institute of Statistics (ISPF), the crisis began well before COVID-19, with signs of decline as early as 2018.

The statistics are alarming: the number of pearl oyster producers dropped by 8% in 2020, following a 1% decline in 2019, and farming areas shrank by 12.7% over three years. Pearl production also fell by 26%, dropping from 9.1 million to 6.7 million post-production inspected pearls.

The price of raw pearls plummeted by 51% between 2019 and 2020, falling from 485 Fcfp to just 270 Fcfp, largely due to reduced global demand and the closure of trade routes with Asia. Exports collapsed by 70.4% over three years, with a 50% drop in 2020 alone, totaling only 2.4 billion Fcfp.

Despite these alarming figures, early 2021 data shows a slight rebound, with exports already surpassing 2020 levels. These signs of recovery offer a glimmer of hope for the sector’s future, though structural reforms remain necessary to stabilize the industry in the long term.