Abstract
The food industry is undergoing transformation globally. The set of circumstances specific to Fiji provides important insights into the drivers of this change, which have implications for private, government and donor agency stakeholders. A novel study of 1,000 urban households in Fiji found that among those surveyed, modern supermarkets have overtaken traditional markets as the dominant food retail outlet and now have 100 per cent patronage and take in 54 per cent of total household food expenditures. However, the battle for the fresh fruit and vegetable category appears to be in its infancy, with 97 per cent of households still shopping for products in this category at the traditional main market. Although foreign investment is a key driver of the retail food sector transformation in more rapidly growing developing countries, in Fiji, where foreign investment is relatively low, this transformation appears to be predominantly supported by rising urban income and changing consumer preferences. Consequently, policy attention should be directed towards market channels that can take advantage of changing consumer preferences, while still supporting local farmers.
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