Category: Economy

After a difficult period, French Polynesia’s pearl industry is experiencing a revival, particularly on the atolls of Arutua and Rikitea. Arutua, with its 80 pearl farmers, stands out as one of the areas where production is regaining momentum. Among these producers, Steve Pommier, a seasoned pearl farmer with over 20 years of experience, distinguishes himself through impressive results.

At his pearl farm in Arutua, Steve Pommier and his team of 30 employees produce nearly 300,000 pearls annually. This success is all the more remarkable given the sector’s struggles in recent years. “Things have been improving over the past two years,” he says, highlighting the progress made despite past hardships.

The pearl industry faced a deep crisis starting in 2008, marked by declining international demand and falling prices. Compounding these challenges were nacre supply issues, particularly on Takaroa atoll, which weighed heavily on production. However, since 2016, the situation has shown signs of recovery, with a slight increase in cultivated areas and the number of producers.

Steve Pommier notes that he doesn’t just produce high-quality pearls but also generates “off-grade” pearls that, while not meeting the strictest criteria, still find their place in the market. Currently, about 70% of his production is exported, primarily to Japan and China, the main players in the global pearl market. With demand outpacing supply, pearl prices have risen, creating new opportunities for producers.

Steve Pommier’s pearls now sell for 800 francs per gram, or about 1,200 francs per pearl. This price reflects an increase over the past year and a half, signaling market improvement. To attract foreign buyers, quality work remains essential. Grafting, which accounts for roughly 50% of the production process, is a critical step, and Steve emphasizes the importance of training skilled grafters to ensure high-quality output.

“We train our own grafters. In the past, we trained eight locals, but only one still works at our farm. The others returned to Papeete. You have to really want to live in the Tuamotus to pursue this career. So we’ve hired Chinese grafters—they’re tougher and more reliable,” he explains.

Today, Steve Pommier considers Rikitea and Arutua—with its 80 producers—to be the two largest pearl-producing areas in French Polynesia. This positive trend points to a promising future for the local pearl industry.

The Pearl Farming Forum, organized by the Ministry of Primary Resource Development, Land Affairs, Domain Enhancement and Mining, opened its doors, bringing together all sector stakeholders for collective reflection on the future of the pearl industry in French Polynesia.

This event, marking a key moment for local pearl farming, focuses on three major themes:

• Promotion of Tahitian cultured pearls
• Environmental protection
• Improvement of grafting techniques

Spanning two days, the forum enabled various participants – producers, decision-makers and scientists – to share their perspectives before an engaged audience. Discussions revolved around three main axes:

• Enhancing the value of Tahitian cultured pearls
• Strategies for sustainable and environmentally-friendly pearl farming
• New grafting techniques to improve pearl quality

Minister of Primary Resource Development Tearii Alpha opened the forum by emphasizing the importance of pearl farming strategy, calling for concerted collaboration to achieve common goals. He stressed the need to protect lagoons as a prerequisite for establishing eco-responsible pearl farming. The government strategy focuses on quality production while preserving ecosystems, maintaining genetic diversity, regulating hatcheries, improving commercialization organization, and creating a certification label for this approach.

Pearl quality was also central to discussions, particularly nucleus monitoring as a crucial production element. Tearii Alpha reiterated that pearl quality directly depends on nucleus quality – a fundamental point for ensuring industry sustainability.

Pearl exports declined by 14.4% in volume and 12.9% in value in 2016 according to the Overseas Issuing Institute (IEOM). However, Tearii Alpha contextualized these figures, noting that despite this decrease, Tahitian pearls remain French Polynesia’s second largest export resource, representing 35% of export revenue, just behind tourism.

Finally, the 2017 law regulating pearl and mother-of-pearl activities was highlighted. It aims to improve product traceability and establish production quotas per hectare. This legislation intends to ensure stricter sector management from production to export, guaranteeing sustainable and lasting growth for the pearl industry.

With its Exclusive Economic Zone (EEZ) spanning 5.5 million square kilometers, French Polynesia boasts one of the largest maritime territories in the world. Yet, according to a recent IEOM study, the economic potential of this vast marine space remains largely untapped.

In 2015, Polynesia’s blue economy generated reported revenues of 39 billion Fcfp, though IEOM estimates suggest the actual figure could approach 47 billion Fcfp. Despite this oceanic wealth, economic valorization remains moderate, hindered by various structural obstacles.

Maritime transport stands as the primary driver of this economy, accounting for a quarter of total revenue—10 billion Fcfp annually. This sector remains a cornerstone, supporting both inter-island commerce and international trade.

Aquaculture shows significant untapped potential. While its 2015 revenue capped at 500 million Fcfp, its development could reach 5.7 billion Fcfp by integrating processing and commercialization. However, the specific accounting of pearl farms in remote areas partially skews current estimates.

Between 2010 and 2015, marine-related sectors saw an average annual growth of 8%, led primarily by fisheries and shipbuilding. These positive trends chart a path for the future.

Seafood products, the spearhead of Polynesian exports, earned 10 billion Fcfp in 2015. Meanwhile, the tourism industry, deeply tied to the ocean, generated 46 billion Fcfp—14.4 billion of which came directly from maritime activities, according to ISPF figures.

The blue economy currently employs nearly 4,850 people. Fishing and pearl farming remain traditional pillars, heavily weighting goods exports. The yachting and cruise sectors are also thriving, with 800 boats recorded in Polynesia in 2015.

Despite these advances, IEOM identifies vast untapped potential, particularly in aquaculture. Large-scale projects like the Hao aquaculture farm could profoundly transform the industry in coming years.

In response, Teva Rohfritsch, Minister of the Blue Economy, emphasized the strategic importance of marine resources for Polynesia, announcing new initiatives to maximize sustainable exploitation of this invaluable oceanic asset.

Polynesia’s pearl industry, an economic pillar of the archipelago, shows encouraging signs of recovery after several difficult years.

According to the latest figures from French Polynesia’s Statistical Institute (ISPF), pearl export revenues increased by 12% in 2014, reaching 8.8 billion CFP francs, marking a second consecutive year of growth.

This improvement also shows in a 6% increase in export volumes, reversing three years of continuous decline. The average export price per pearl now stands at 1,030 CFP francs (+1.5% compared to 2013), while the price per gram shows a more significant increase of 6%, reaching 600 CFP francs.

However, these positive results mask a more nuanced reality. The ISPF notes that “revenue levels remain low compared to the sector’s true potential” and that “the supply-demand imbalance still favors demand.” The current unit price doesn’t reflect the luxury image associated with Tahitian black pearls, French Polynesia’s second-largest domestic resource after tourism.

“We eagerly await the new law on pearl products, originally scheduled for late 2015 and currently on hold,” laments Aline Baldassari, President of the Tahitian Pearl Association of French Polynesia (TPAFP). She stresses the urgent need for regulatory reform, particularly to count pearls when they leave the water rather than only at export, to obtain statistics that better reflect actual production.

In 2014, raw cultured pearl production extended across 25 Polynesian islands, with 561 maritime concessions, including 435 in the Tuamotu Archipelago. This complex artisanal activity, which requires two years of training to become a grafter, represents unique expertise—the world’s only grafting school is located in Rangiroa.

While the sector’s economic recovery is underway, professionals now await updated regulations to consolidate this momentum and restore Tahitian black pearls’ full value in international markets.

The latest data from French Polynesia’s Statistical Institute (ISPF) paints a stark economic picture for August, with imports rising while exports plummet—led by a dramatic collapse in the pearl sector.

Export Crisis: Pearls in Freefall

📉 August 2023 vs. August 2022:

• Pearl exports down 58%
• Year-to-date decline: 20.7%

🌊 Other Exports Hold Steady:

• Fishing, noni, copra, and monoï maintain performance
• Slight dip for noni in August

Import Rebound Across Sectors

📈 Key Increases:

• Intermediate goods: +7%
• Capital equipment: +19%
• Automobiles: +52% (surge)
  ⛽ Exception: Petroleum products -23% (due to global price drops)

Domestic Economic Signals

🛒 Household Consumption:

• -2% volume (but +8% value) → Inflation pressure
  🏭 Business Investment:
• +6% volume, +4% value → Cautious optimism

Why This Matters

The pearl industry’s collapse (representing ~30% of non-tourism exports) exposes Polynesia’s vulnerability:
⚠ Over-reliance on traditional exports
⚠ Urgent need for sector diversification
⚠ Inflation eroding purchasing power

Expert Insight:
“Pearls are our economic compass,” notes an ISPF economist. “When they decline, it shakes our entire trade balance.” With global luxury demand softening, Polynesia faces tough choices between industry bailouts and accelerating diversification.

The iconic Tahitian pearl industry faces its most severe crisis in decades, with plummeting exports, environmental threats, and fierce Chinese competition converging to threaten its very survival.

Alarming Economic Indicators

📉 42% drop in Q1 exports (vs. 2014)
💸 50% revenue decline reported by major traders
🇯🇵🇨🇳 Key markets collapsing: Japan (VAT hike/recession) & China (economic slowdown)

Root Causes of the Crisis

1. Market Pressures
   • Global recession impacts luxury purchases
   • Chinese freshwater pearls now rival Tahitian gems in roundness/color at 30-50% lower prices
2. Environmental Disasters
   • Toxic algae blooms (e.g., Takaroa) killing oysters
   • Scarce pearl oyster spat threatening future production
3. Structural Weaknesses
   • Promotion funds diverted to general budget
   • Lack of unified quality standards

Industry Leaders Sound the Alarm

💬 Aline Baldassari-Bernard (TPAFP):
“Our 2014 revival efforts have been overwhelmed by these unprecedented challenges.”

💬 Loïc Wiart (Exporter):
“We’re selling at 2008 prices while costs have doubled.”

💬 Jeanne Lecourt (FPPF):
“Without dedicated promotion funding, we’re invisible globally.”

Survival Strategies Proposed

✅ Immediate Actions:

• Reallocate pearl export tax revenue to targeted marketing
• Establish emergency fund for affected farmers

🌐 Long-Term Solutions:

• Differentiate through certified premium quality
• Develop climate-resilient farming techniques
• Lobby for geographical indication protection

The Stakes

As the second-largest export sector (after tourism), the pearl industry’s collapse would:

• Eliminate 4,000+ jobs
• Erode Polynesia’s cultural identity
• Damage marine ecosystem management

“We’re not just fighting for an industry—we’re preserving our heritage,” stresses Lecourt. With the 2024 production cycle at risk, the window for decisive action is closing rapidly.

(Data: ISPF 2024 Report, TPAFP Market Analysis)

Pearl farming, aquaculture, and mineral resources under expert scrutiny

Papeete (French Polynesia) – The Economic, Social, and Cultural Council (CESC) has released a visionary report that could redefine the territory’s economic future. Unanimously adopted, this 132-page document—the work of oceanographers Patrick Galenon and Winiki Sage—methodically explores the potential of Polynesia’s vast maritime domain.

Three Key Sectors Identified

1️⃣ Pearl Farming: Restructuring Needed
2️⃣ Aquaculture: Promising but Requiring Regulation
3️⃣ Mineral Resources: Controversial Opportunities

Each presents transformative potential—if managed wisely.

---

Pearl Farming: Toward Rational Management, OPEP-Style

Though the second-largest economic sector after tourism, Polynesian pearl farming faces persistent crisis. The CESC report highlights key issues:

• 1990s concession liberalization
• Competition from low-cost Chinese grafting
• Plummeting market prices

Proposed Solutions:

• Adopt models like OPEC’s volume control
• Implement De Beers’ diamond strategy
• Introduce Australian-style quotas

“The goal is to create artificial scarcity to boost prices,” explains Patrick Galenon. This would require unprecedented coordination among local producers.

---

Aquaculture: The Paradox of China’s Hao Mega-Project

A 150-billion-FCFP Chinese aquaculture project in Hao promises major economic benefits—but the CESC raises red flags:
⚠ No environmental impact data
⚠ Pollution risks for Polynesian lagoons
⚠ Lack of transparency on techniques

“This could be a windfall—if strict safeguards are imposed,” insists Winiki Sage. The report calls for stronger regulations before final approval.

---

Mineral Resources: Balancing Profit and Protection

Polynesia’s seabed holds coveted treasures:

• Phosphates (Makatea, Mataiva)
• Rare earth metals (Tahaa)
• Deep-sea polymetallic nodules

Yet each opportunity sparks debate. For example, phosphate mining in Makatea divides locals between economic development and environmental protection.

CESC Recommendations:

• Rigorous assessment of each deposit
• Prioritize clean mining tech
• Maintain Polynesian control over resources

---

Conclusion: Polynesia at a Crossroads

This landmark report lays the foundation for a new maritime policy. Between sustainable exploitation and ecosystem preservation, strategic choices loom.

“Our ocean is our future,” summarizes Winiki Sage. “But that future must be built with wisdom and foresight.” A timely message, as global interest in the Pacific intensifies.

---

After five years of crisis, the black pearl has regained its luster and reemerged as the driving force behind local exports.

A Long-Awaited Recovery

The Tahitian black pearl, Polynesia’s iconic lagoon treasure, is experiencing renewed growth after a difficult decade. According to the latest statistics, exports surged by 10% in 2013, now accounting for two-thirds of foreign sales.

“This revival is the result of a collective strategy,” emphasizes Teva Sylvain, President of the Pearl Farmers’ Union. “We’ve taken control of our production to restore the Tahitian pearl’s heritage value.”

A Quality Strategy That Pays Off

Industry professionals have learned from past mistakes:
✔ End of overproduction that flooded markets
✔ Focus on high-end pearls
✔ 15% price increase since 2012

“The price per gram now exceeds 570 FCFP, a level unseen since 2008,” notes Marama Chaze, a sector economist.

The Tuamotus: Beating Heart of Pearl Farming

The archipelago solidifies its dominance:

• 50 new maritime concessions in 2013
• Apataki, Raroia, and Takume leading production
• 25 islands and atolls now active producers

“This controlled expansion protects our lagoons’ quality,” stresses the Minister of Marine Resources.

Japan: Key Market in the Revival

After a slump, Tokyo has regained its place as the top buyer:

• 40% of 2013 exports
• 25% surge in demand for premium pearls
• Next auction scheduled for November

“Japanese collectors will pay top dollar for excellence,” shares a Papeete wholesaler.

A Success Still Fragile

Despite positive indicators:
⚠ 7.8 billion FCFP in exports remains below 1990s records
⚠ 66% share of local exports could grow further
⚠ Strengthening international competition

“The challenge now: sustain this momentum without repeating past excesses,” concludes Teva Sylvain. A delicate balance for this jewel of the South Seas.

French Polynesia’s trade balance has reached unprecedented heights, with July 2014 exports skyrocketing 73% in value compared to July 2013, according to ISPF data. This remarkable performance stems from two powerhouse sectors:

Pearl Sector Dominates

✨ Year-to-Date Highlights (2014 vs 2013)

• +7% value increase despite -14% volume
• +14% price per gram (averaging ~685 FCFP)
• July auction records matching pre-2009 crisis levels
• Cumulative orders +23% for first seven months

The historic July auction alone doubled 2013’s sales, proving Tahitian pearls’ regained market prestige.

Fisheries Show Contrasting Trends

🐟 July 2014 Surge

• +41% export value
• +47% volume
  ⚠️ Year-to-Date Reality
• -4% overall value (due to -10% price per kg)

Other Export Sectors

🥥 Copra Oil

• July: +67% price/kg + +16% volume
• 2014 total: -3% value (volume plunged -35%)

🍈 Noni Puree

• Temporary July rebound
• Yearly total: -18%

Market Analysis

“These numbers confirm pearls as our economic lifeline,” notes an ISPF economist. The strategic shift toward premium-quality pearl production (lower volume but higher value) is paying dividends, though fisheries’ volatility underscores the need for diversified growth.

Key Takeaway: While Tahitian pearls regain their luster in global markets, the challenge remains to stabilize other traditional exports. The +14% pearl price increase suggests successful rebranding as a luxury commodity post-crisis.

*Data Source: ISPF Trade Report – August 2014*

The French Polynesia Statistics Institute (ISPF) has released its latest economic report, revealing contrasting trends in foreign trade during the first quarter of 2014.

Import Trends: Stability with Caveats

• Overall stability in import value (+0.3%)
• 5% volume increase signals falling unit prices
• March surge (+22.3%) driven by:
  • Business equipment orders
  • Petroleum product purchases (↑13% in volume despite lower prices)
• ISPF attributes fluctuations to temporary factors:
  • Inventory replenishment cycles
  • Delivery delays

Export Woes Continue

• March rebound (+1.9%) fails to offset quarterly decline (-5%)
• Pearls show resilience:
  • +15% quarterly growth
  • +30% surge in March
• Other sectors struggle:
  • Fish exports: -31%
  • Mother-of-pearl: -35%
  • Vanilla: -15%

Growing Economic Vulnerability

The export portfolio is becoming increasingly concentrated on raw pearls, which now account for:

• 87% of total export value (vs. 82% in Q1 2013)
  This overdependence raises concerns about the territory’s ability to withstand global market volatility.

Key Takeaway: While the pearl sector remains Polynesia’s economic lifeline, the dramatic decline in other traditional exports underscores an urgent need for export diversification. The petroleum import surge warrants monitoring as it may signal either strategic stockpiling or emerging energy demand pressures.

*Data Source: ISPF – April 2014 Trade Bulletin*