Promoting on 11 Cents per Pearl

Liquidation is continuing at the doomed GIE Perles de Tahiti. The 15-year-old promotional arm of the industry is in the final death throws, moving to appoint a liquidator to disburse the remaining US$650,000 in the coffer to debtors and other commitments.

The move for dissolution has been a while in coming, first planned for September 30th, then moved to January 1st likely related to a conflict of interest between the minister in charge of the pearl industry (Teva Huiouto-Hapaitahaa) who happens to be Michael Yip’s son in law (one of the biggest players in the production game).

With the dissolution of GIE, the 200 CFP per gram tax might not return, and if it does, it will likely be reduced to 10 CFP per pearl. That comes out to a whopping US$0.11 per pearl! I wonder what sort of promotional activities the new promotional arm of the industry will be able to accomplish for 11 cents per pearl. One thing is certain, the champagne dinners and celebrity hobnobbing of the directors is going to be cut short. The farmers have made it clear that this sort of abuse will no longer be tolerated on the backs of those that do the grunt work in the atolls. Those who are responsible for replacing vanilla as the number one export from French Polynesia.

Is there hope for the industry? Probably not, without some sort of central control and regulation of the industry. With 46% of production going straight from producers to foreign buyers, pricing and quality are going to continue unabated fluctuation at the whim of immediate need and want.