Category: Economy

Final review of accounts this Thursday at the Polynesian Assembly before definitive liquidation.

The axe has fallen. The Pearl House, once the symbol of Polynesia’s pearl farming ambitions, is set to disappear for good on December 1. This Thursday, lawmakers will examine its final financial report—a damning document that marks the end of a short-lived venture plagued by financial waste.

“It was a structure doomed to fail from the start,” denounces a senior official speaking anonymously. “An empty shell propped up by 90% public funding.”

A Predictable Financial Shipwreck

The 2012 figures reveal a dire situation:

• 39 million Fcfp deficit
• 128 million Fcfp in public subsidies (92% of the budget)
• Only 6.4 million Fcfp in independent revenue
  “The business model was unsustainable,” analyzes Marc Teihotaata, an accounting expert. “They created a bureaucratic monster with no strategic vision.”

Flagship Projects Turned Into Fiascos

Among the most spectacular failures:

• The mythical American sorting machine, never delivered despite heavy investment
• The stillborn Tahiti Pearl Consortium, lacking private commitments
• 82.7 million Fcfp wasted on promotional campaigns with no visible results
  “Some expenses were pure madness,” fumes a former employee.

Mass Layoffs and Accelerated Liquidation

The dissolution process, initiated in August, involves:

• 7 employees laid off between late October and November
• Prestige premises to be reassigned
• A rushed transfer of responsibilities to the Marine Resources Directorate
  “We’re being tossed aside like trash after giving our all,” says a tearful employee.

The End of a Governmental Utopia

This closure marks:

• The government’s new austerity measures
• The abandonment of unprofitable para-public structures
• A recentralization of pearl farming oversight
  “The era of waste is over,” declares the Minister of the Economy. The question remains: Who will now carry Polynesia’s pearl industry torch on the international stage?

Key Failure Figures

→ Only 3 years in operation
→ 200 million Fcfp/year budget wasted
→ 0 successful projects
→ 100% of employees laid off

Established in July 2012 under the presidency of Maeva Wane, the Economic Interest Group (GIE) Tahiti Pearl Auction (TPA) brings together Tahitian cultured pearl producers with the ambition of structuring and revitalizing the market through international auctions. The GIE aims to promote these events within Polynesian territory.

To this end, GIE Tahiti Pearl Auction has sought logistical support and partnership from the Maison de la Perle to organize this historic first sale.

The official pearl presentation began on Friday, November 16, 2012, at the Maison de la Perle, located at Place Kohu Kino in the Paofai Gardens. Buyers can view the available lots until Tuesday, November 20, from 8:00 AM to 5:00 PM.

The auction will officially open on Wednesday, November 21, 2012, at 8:00 AM, under the presidency of Marine Resources Minister Temauri Foster, in the Hibiscus Room of the Intercontinental Tahiti Resort. The day will conclude with a closing ceremony followed by a dinner.

Over 60 international buyers from Japan, Hong Kong, China, Canada, and Europe, along with local buyers, will participate in this event. For this inaugural auction, nearly 350,000 Tahitian cultured pearls will be offered for sale by GIE Tahiti Pearl Auction.

ISPF Report Reveals Systemic Challenges Threatening Polynesia’s “Black Gold”

The latest data from French Polynesia’s Institute of Statistics (ISPF) paints a grim picture for the pearl industry in 2010, with average prices collapsing to one-fourth of their 2000 value—a downward spiral that jeopardizes the sector’s survival.

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By the Numbers: A Decade of Decline

📉 Price Freefall

• 2000: 2,200 FCFP/gram (≈€18.40)
• 2010: 460 FCFP/gram (≈€3.85)
• 5-year drop: 33% revenue decrease since 2006

📦 Overproduction Crisis

• Export volumes doubled since 2006
• Supply now dwarfs global demand
• Quality degradation exacerbating price erosion

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Root Causes of the Collapse

1️⃣ Quality Erosion

• Thinner nacre layers (<0.8mm) flooding markets
• Lack of standardized grading enabling counterfeit competition

2️⃣ Power Imbalance

• Farmers squeezed by middlemen retaining 60-70% margins
• No collective bargaining leverage in international auctions

3️⃣ Promotional Failure

• Maison de la Perle (est. 2010) yet to deliver impactful marketing
• Tahitian pearls losing shelf space to Australian and Indonesian rivals

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Industry at a Crossroads

Urgent measures needed to avoid collapse:
✔ Production quotas to stabilize supply
✔ Blockchain traceability to certify premium quality
✔ Farmer cooperatives to regain pricing power

“We’re selling our national treasure at souvenir-store prices,” warns an anonymous pearl farmer from Manihi.

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Historical Context

• 2007: Peak at 2,200 FCFP/pearl
• 2010: Crisis point—80% of farms operating at a loss
• 2024 Parallels: Current reforms echo 2010 warnings about quality control

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Path Forward

The ISPF urges immediate action to:
✅ Enforce minimum nacre standards
✅ Diversify markets (China, India)
✅ Align production with demand

Historic Break with Pearl House After Record 363M XPF Sale

In a bold move signaling industry upheaval, Tahiti’s pearl farmers have declared independence from the state-backed Maison de la Perle following their second successful auction of 2024, which generated 363 million XPF (≈€3M) from 278 lots sold.

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The Breakup: Why Farmers Are Going Solo

1. Rejecting “Outdated” Sorting Standards

The five key producer groups—GIE Poe o Rikitea, GIE Raromatai, GIE Poe o Tahiti Nui, GIE Manihi, and SPMPPF—cite the Pearl House’s grading system as “overly simplistic and auction-illiterate.” They argue their direct buyer relationships enable more market-responsive pricing.

2. Accusations of Institutional Dysfunction

• Favoritism Claims: Farmers allege the Pearl House prioritizes partnerships with Citizen over Japan’s Tahitian Pearl Promotion Society (TPJ), a major buyer that boycotted recent auctions in protest.
• Promotion Blunders: Paris’ Place Vendôme exhibition (May 2024) is singled out as a “disastrous misstep” that alienated industry professionals.

3. Ministerial Backlash

SPMPPF representative Georges Mataoa minced no words:
“The Pearl House can’t adapt to auction realities. We’re on the ground with buyers—they’re not.”

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Industry at a Crossroads

This revolt reflects deeper tensions:
🔹 Autonomy vs. Centralization: Farmers demand control over pricing and promotion.
🔹 Market Realities: TPJ’s boycott underscores risks of alienating key buyers.
🔹 Political Fallout: Minister Temauri Foster faces mounting pressure to reform—or dismantle—the Pearl House.

“We’ve proven we don’t need gatekeepers,” declared a Rikitea farmer. “Our pearls, our rules.”