Young entrepreneur Shagar Sharma decided to start his kava export business to help local yaqona farmers who had the supply but could not export because they did not have a licence.
Today Shagar’s Investment is a licensed exporter of kava powder and roots with the American Food and Drug Administration (FDA) and Biosecurity of Fiji.
Operating from Koronivia, Nausori, the company deals with kava pounding and packaging for wholesale export to the United States of America, New Zealand as well as several Pacific Island nations.
“We also export locally made tanoa and bilo to the US which we get handmade from the outer islands and villages in Fiji.
“We export 1.5 to 2 tonnes of Fiji kava along with 40 to 50 tanoa and a couple hundred bilo to the US every month,” said Mr Sharma.
A final year BSc. Chem/Physics student with the Fiji National University, Mr Sharma was inspired by his uncle, who has a kava wholesale and retail business in the United States.
“My uncle has a kava wholesale and retail business in the United States, Gosai’s Kava – Fiji kava wholesaler. We were talking on the phone one day and he was complaining how he could not get more kava exported from Fiji as a lot of farmers have the yaqona ready and want to send them but cannot since most farmers are not licensed exporters of kava. I suggested that I could get an exporter licence and buy the kava from the local farmers and send it to him.
“Today, my business is an FDA and BAF licensed wholesale exporter of kava. We also have BAF approved packing and storage premises for our kava.”
Since the idea came from him, Mr Sharma self-funded his business but with a lot of guidance in terms of introduction to the market, farmers and buyers provided by his uncle Mr Gosai.
“There is definitely a kava boom in the US, even more so for Fiji kava as our kava has a distinct taste and delight which no other can match. My clients in the US, who are kava retailers in the States, often complain how quickly they go through the kava in just a few days after our shipment reaches them.
“I have even heard of a couple driving 3 hours to pick up an order of yaqona at 2am for a function the next morning,” he said.
Mr Sharma does not have a yaqona farm but buys the commodity from suppliers who are from Savusavu, Taveuni, Labasa and Kadavu.
“We try to get as many suppliers as we can as the demand for kava from our clients is very high and ever present.”
According to Mr Sharma, the business actually started to help the farmers out in the first place.
“They could not send their kava to the US because they did not have an exporter license and a lot of other exporters required them to send the product before payment is made and even then the payment would come in small instalments.
“The farmers need money for regular use and preparing the orders, so we ensure they have the money on time. We always pay the full amount to most of our farmers well in advance as the order is placed. There is a lot of mutual trust between our farmers and us as it is essential to the smooth running of the business.”
The company has a standing order of 1.5 tonnes to 2 tonnes of kava powder and roots to the US every month on average, along with a couple hundred kilos of kava powder to NZ.
“However, we can send only this amount since we cannot get more kava locally at the moment, as the client demand, especially from the US, is very high.
“We are a fairly new business and still need more farmers and suppliers so that we can meet our client demand which can be up to 3 to 4 tonnes in the US alone.”
While this pandemic has tested many businesses, Mr Sharma says the pandemic is not hurting them as much as it is most of Fiji
“Our orders get sent, we get paid on time and life goes on. However, our farmers have payments to make and workers to pay. We try to help the farmers as much as we can.
“We usually have an order being prepared by our farmers and send them an advance of a couple thousand dollars for the next order too, just so that they don’t need to worry about anything and work stress free.”
He said the pandemic had been hard all over and the company tried to help as much as it could so as to not lose its suppliers in these trying times, adding that the helpful items listed for exporters in the new government budget was also a very welcome help too.
Being a final year student at the FNU makes it a bit challenging for Mr Sharma but he manages to give his best to both.
“Running a business while taking classes, well, it can be somewhat challenging. With assignments due and shipments to send, things can get a bit hectic. However, the growing number of help the university provides is a big help.
“Online classes for one, is a godsend on busy days. Understanding professors are amazing too, who don’t mind a few missed classes as long as I can keep up. Recorded lectures, supportive classmates and helpful professors help make what would have been a challenging task, a walk in the park.”
Mr Sharma believes that supply, demand and trust are three essential concepts to running a successful business.
“First of all, ensure there is a demand in the market for whichever product, service or commodity your business will have. Secondly, ensure you have access to a steady and affordable supply for the product, service or commodity you have chosen. Finally and most importantly, ensure that trust is always maintained between yourself, your suppliers and clients.”
Since Shagar’s Investment is his first step into the commercial world, he is glad it has been successful.
“I hope to grow this business as much as I can in the future. We hope to get more farmers and suppliers so that we can export much more kava.
“Our clients are ready and eager to buy upwards of 3 to 4 tonnes of kava a month, we hope to very soon meet their demand with the help of Fijian kava farmers.”
