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The production of kava remains important due to its contribution to export earnings to support the agriculture sector, as Fiji’s third-largest sector in terms of Gross Value Added.

According to ANZ Bank’s report on outlook for industry output, kava contributed $228m to GVA in 2022, up from $68m to GVA in 2014.

It states that kava accounted for 11 percent of total agriculture GVA in 2014 but now makes up nearly 30 percent of GVA.

Kava production has shot up since 2014, more than offsetting the decline in sugarcane and contributing to the overall expansion of the agriculture sector.

ANZ Bank’s report also states that sugarcane has been the mainstay of the agriculture sector, although its output has been impacted by farmers exiting the industry when their leases expire over the years.

The report further states that despite the decline in sugarcane, it still provides a stable income for many people in rural areas around the country.

Australia and New Zealand Bank’s research forecasts growth in agriculture sector to remain steady, averaging 3.2 percent over 2024 and 2025.