Evaluates project to help the Tonga Cooperative Foundation (TCF) achieve solvency and financial independence, enabling it to provide member cooperatives with marketing services. Special evaluation covers the period 1/82-5/85 and is based on site visits and interviews with key personnel. TCF has been very successful in consumer goods wholesaling; channels, structures, and procedures for this activity are now well established. TCF’s vanilla and fish marketing endeavors are less well developed, however. The vanilla industry in Tonga has for the most part been based on cooperatives’ sales to American buyers. Recently, serious competition for vanilla beans has come from the Government of Tonga’s (GOT) Commodities Marketing Board and a few sole proprietors, who export to Australia and New Zealand. For the first time, vanilla producers believe that they could have received more money for their crop by not selling through their cooperative. An improperly cured vanilla crop in 1984 further damaged TCF’s competitive position, but a new GOT quality assurance program should alleviate this problem. TCF has begun developing market channels for the new domestic fish industry, which is being promoted by GOT projects such as subsidized fishing boats and fisherman training. TCF provides a ready market for the fish at a fair price by freezing and shipping them to Tongatapu. Unfortunately, other GOT programs tend to destabilize the market, as does GOT ambivalence about continuing aid for freezing and transportation. TCF will apparently be split, with the wholesale business retaining the TCF name and a new organization responsible for vanilla and fish marketing, as well as handicrafts, fishery supplies, and farm produce marketing. This division would ease the burden on the Management Committee, but there is much doubt as to whether the new organization will be able to survive independently. It is hoped that A.I.D. or another donor will provide assistance. Recommendations for the current grant are to strengthen TCF’s position in vanilla and fish marketing by constructing a 3-ton capacity central vanilla curing shed in Vavau and establishing a retail fish market in Nukualofa.
