Indicator ECO1.7.1 Level of production of major commodities to include cocoa and copra

No

Level of production refers to the amount that is produced. It is a way of classifying production. The amount that is produced or the level of operation of production of a country is affected by the resources available and the extent to which a country is able to exploit the resources available

There are three level of production, Primary which is more concern with the extraction of raw materials from the earth’s surface for instance farming and fishing. Secondary, this is made up of manufacturing or processing and construction. Lastly tertiary, made up of services used to aid the other two levels of production.

beef, cocoa, coconut oil, coffee, copra, kava and wood

The indicator “level of production of major commodities in Vanuatu” provides valuable insights into the country’s agricultural and economic sectors. Here are some rationales for considering this indicator:

1. Economic Contribution: Vanuatu’s economy heavily relies on agriculture, with the sector playing a significant role in employment, income generation, and GDP contribution. Assessing the level of production of major commodities helps understand the economic impact of agriculture and its contribution to overall economic development in Vanuatu.

2. Export Potential: Vanuatu’s major commodities often have export potential, contributing to foreign exchange earnings and trade balance. Tracking the production levels of these commodities provides an indication of the country’s export capacity and its ability to tap into international markets. It helps identify opportunities for expanding exports, diversifying markets, and reducing dependence on specific commodities.

3. Food Security: Agriculture is crucial for domestic food security and nutrition. Monitoring the production of major commodities allows policymakers to assess the country’s self-sufficiency in staple foods and identify any potential gaps in meeting the nutritional needs of the population. It helps guide strategies to promote domestic food production, reduce import dependence, and ensure a stable food supply for the people of Vanuatu.

4. Employment and Livelihoods: Agriculture is a significant source of employment and livelihoods for many people in Vanuatu, particularly in rural areas. The level of production of major commodities reflects the labor demand and the income-generating opportunities available in the agricultural sector. Understanding the dynamics of commodity production helps policymakers address employment challenges, support rural development, and improve livelihoods for farmers and their communities.

5. Sectoral Planning and Policy Formulation: Data on the production of major commodities assists in sectoral planning and policy formulation for agriculture. It helps identify areas of strength and weakness, determine priorities for investment, and guide interventions to enhance productivity, sustainability, and competitiveness in specific commodity sectors. This information enables evidence-based decision-making and targeted policies to support agricultural development.

6. Climate Resilience and Adaptation: Vanuatu is vulnerable to climate change impacts that can significantly affect agricultural production. Monitoring the production of major commodities provides insights into the resilience of the agricultural sector and its capacity to adapt to climate-related challenges. It helps identify climate-sensitive commodities, assess the effectiveness of adaptation measures, and guide strategies for building climate resilience in agriculture.

By analyzing the level of production of major commodities in Vanuatu, policymakers, economists, and stakeholders can gain a comprehensive understanding of the country’s agricultural sector’s performance, its contribution to the economy, and its role in food security, employment, and rural development. This knowledge informs policy decisions, resource allocation, and interventions aimed at strengthening the agricultural sector and promoting sustainable and inclusive economic growth in Vanuatu.

Trade statistics provide insights into the production levels of major commodities, especially for commodities that are exported or imported. By examining the quantities of commodities traded domestically or internationally, production levels can be estimated indirectly

8.2.1 (tier1)

Vatu in millions

Month & Anually