Tahiti pearl Consortium

[Cyril Roger Brossard]

Tahiti pearl Consortium : "touche pas ? ma perle", r?pondent les professionnels

Le mod?le strat?gique pr?sent? par le consultant Gaetano Cavalieri visant une meilleure valorisation de la perle de Tahiti est tr?s controvers? par les professionnels du secteur qui d?noncent une manœuvre du Pays visant ? prendre le contr?le de l’?cosyst?me de la perle.

"Il faut ?tre honn?te : le projet est magnifique sur le papier, mais irr?alisable dans ce pays", constate Aline Baldassari-Bernard, pr?sidente du syndicat professionnel des producteurs de perles (SPPP). "Et pour une fois, nous sommes unanimes : toute la profession est r?unie pour d?noncer ce projet."
Tous comme un seul homme, en effet. Sur le perron de la Pr?sidence, une employ?e du service de la perliculture exprime m?me une indignation un brin admirative, en observant le groupe de professionnels s’approcher avec une bonne heure de retard : "s’ils ?taient unis comme cela tout le temps…".
Tout le monde est l? : les GIE et syndicats de producteurs, le syndicat des n?gociants et quelques producteurs ind?pendants. Tous viennent exprimer leur d?saccord, mercredi 28 novembre, ? la pr?sentation anim?e par Gaetano Cavalieri, salle du gouvernement, ? l’invitation du minist?re des Ressources maritimes et de la Maison de la Perle. Non, ils ne veulent pas d'un plan de sortie de crise r?alis? dans leur dos et sans concertation.

Le mod?le strat?gique ?voqu? par le consultant international s’inspire de celui d?velopp? par le Consorzio del prosciutto di Parma (Consortium du jambon de Parme), cr?? en 1963 par 23 producteurs et qui en compte 156 aujourd’hui.
En trois ?tapes, ? l'horizon du 31 juillet 2013, il pr?voit de compl?tement restructurer le n?goce de la perle de Tahiti.

Aussi, le consultant propose-t-il d’organiser la vente du pr?cieux joyau des lagons polyn?siens autour d’un consortium de producteurs, r?gi par une charte et appuy? sur une soci?t? internationale de distribution de perles agissant pour son compte. Ce regroupement, le Tahiti Pearl Consortium, est charg? de veiller au respect des dispositions l?gales et r?glementaires et de la promotion du produit, alors que la soci?t? internationale de distribution de perles, soci?t? d’?conomie mixte, s’occupe de la commercialisation.

Cette soci?t? ne s'attacherait qu'aux produits haut de gamme et se propose d’?liminer les interm?diaires japonais et chinois, pour fixer la valorisation du produit dans des mains polyn?siennes. "Du producteur au fournisseur du vendeur au d?tail, la valeur commerciale de la perle est multipli?e par un facteur entre 1,8 et 2,1", estime l'?tude de Gaetano Cavalieri. "Par cons?quent, il y a environ 100% de valeur ajout?e qui est perdue au profit des interm?diaires, entre le producteur et le vendeur au d?tail, et TPC est con?u pour capter cette portion.".

Gaetano Cavalieri se fait fort, en outre, profitant de sa fonction de pr?sident de la CIBJO, la conf?d?ration internationale de la bijouterie, de la joaillerie, de l’orf?vrerie et des pierres pr?cieuses, de "travailler en ?troite collaboration avec la CIBJO afin d’obtenir une reconnaissance internationale de la perle de culture de Tahiti".

Mais, outre le prix jug? un peu ?lev? de la consultation de Gaetano Cavalieri (79 millions Fcfp), ?paul? par une ligne de 500 millions Fcfp au budget 2013, "? un moment o? le Pays est ? l’agonie", les professionnels redoutent l’intervention du politique dans un ?cosyst?me fragilis? : "tous les syst?mes qui sont en monopole, a fortiori contr?l? par un gouvernement, ne fonctionnement pas correctement", constate Lo?c Wiart, pr?sident du syndicat des n?gociants de perles. "Ce qui marche, c’est la concurrence. Une concurrence suffisamment saine pour stimuler les acteurs de la fili?re, producteurs, n?gociants ou acheteurs ?trangers. Se retrouver tous dans une entit? contr?l?e par le Pays est inqui?tant. Il suffit de regarder la Maison de la perle : ?a ne fonctionne pas et 90% des acteurs ne sont pas dans cette Maison de la Perle."

Une voix discordante cependant, celle de Francky Tehaamatai, producteur et n?gociant de perles, qui adh?re au projet du Pays en manifestant son appui par une question sybilline "vous savez ce que c’est qu’une centrale d’achat, la force que ?a repr?sente sur le march? ?"

The strategic model presented by the consultant Gaetano Cavalieri for a better appreciation of pearl is very controversial among professionals who report to maneuver the country to take control of the ecosystem of the pearl.

"We must be honest: the draft is wonderful on paper, but impossible in this country," says Baldassari Aline Bernard, president of the trade association of producers of pearls (PPMS). "For once, we agree: the entire profession is held to denounce this project."
All as one man, indeed. On the steps of the Presidency, a service used the pearl expresses indignation even a hint of admiration, watching the approaching group of professionals with a good hour late "if they were united like this all the time ... ".
Everyone is there: GIE and unions of producers, traders and syndicate some independent producers. All come to disagree, Wednesday, Nov. 28, presentation hosted by Gaetano Cavalieri, Hall Government, at the invitation of the Ministry of Marine Resources and the House of Pearl. No, they do not want a crisis plan made in their backs and without consultation.

The strategic model suggested by the international consultant draws on that developed by the Consorzio del Prosciutto di Parma (Parma Ham Consortium), created in 1963 by 23 producers who are 156 today.
In three steps, the horizon of 31 July 2013, it plans to completely restructure the trade of pearl.

Also, the consultant he offers to arrange the sale of the precious jewel of Polynesian lagoons around a consortium of producers, governed by a charter and supported on a global distribution of beads on his behalf. Consolidation, the Tahiti Pearl Consortium is responsible for ensuring compliance with laws and regulations and promote the product, while the international distribution of beads, mixed economy company, is responsible for marketing.

This company would focus only high quality products and aims to eliminate intermediate Japanese and Chinese, to set the value of the product in the hands Polynesian. "From the producer to the retailer supplier, the commercial value of the pearl is multiplied by a factor between 1.8 and 2.1," said study Gaetano Cavalieri. "Therefore, there are about 100% of value added is lost to intermediaries between the producer and the retailer, and TPC is designed to capture this part.".

Gaetano Cavalieri is strong, also taking advantage of his position as Chairman of the CIBJO, the International Confederation of Jewellery, jewelery, gold, silver and precious stones, "working closely with the CIBJO order obtain international recognition of the cultured pearl of Tahiti. "

But besides the price a little high judged consultation Gaetano Cavalieri (79000000 XPF), supported by a line of 500 million budget Fcfp 2013, "at a time when the country is dying," professionals fear intervention policy in a fragile ecosystem, "all systems are a monopoly, a fortiori controlled by a government, not working properly," says Lo?c Wiart, president of the union traders pearls. "What works is the competition. Competing healthy enough to stimulate players in the industry, producers, traders and buyers. Finding in all in an entity controlled by the country is worrying. Simply watch the house the pearl does not work and 90% of players are not in this House of Pearl. "

However, a dissenting voice, that of Francky Tehaamatai, producer and marketer of pearls, which adheres to Country project by demonstrating its support by cryptic questions "you know what is a central purchasing power it is on the market? "

 

[Cyril Roger Brossard]

Aline Baldassari-Bernard : "On ne veut pas d’une organisation domin?e par le politique"

Tahiti infos : Que reprochez-vous au plan strat?gique propos? par Gaetano Cavalieri ?

Aline Baldassari-Bernard : D’abord, sur le principe. On nous a pr?sent? deux expos?s Power Point en juin dernier, ? la pr?sidence, expliquant vaguement ce qu’il envisageait comme dispositif : en gros une centrale d’achat et une strat?gie marketing pour vendre sur le march? du luxe.
Beaucoup ? l’?poque ?taient dubitatifs. Depuis, il n’y a pas eu de concertation avec les professionnels. Aujourd’hui, le Pays nous met devant ce projet, d?cid? de mani?re unilat?rale.
Depuis des ann?es, on se bat pour r?organiser la fili?re en amont et non pas sur le plan de la commercialisation. C’est certes un point cl? ; mais il y a beaucoup de probl?mes au niveau de la production dont le gouvernement ne se pr?occupe pas.
Ensuite, ce projet est tr?s cher : 79 millions Fcfp pour une ?tude… En ce moment en p?riode de crise.
Enfin, M. Cavalieri a annonc? que son objectif ?tait d’?liminer les acheteurs historiques, japonais et chinois, alors que ce sont nos acheteurs pour 80% de la production, aujourd’hui. Cela fait 30 ans, nous, producteurs, que nous vendons nos perles – certes, pas de la meilleures des fa?ons – mais dans le contexte ?conomique mondial en crise, on a prouv? l’ann?e derni?re que l’on se d?brouillait convenablement.

L’analyse de M. Cavalieri estime que la valeur commerciale de la perle pourrait ?tre multipli?e par un facteur entre 1,8 et 2,1, en supprimant les interm?diaires et en s’adressant directement aux d?taillants.

M. Cavalieri appuie sa strat?gie sur le march? du luxe, c'est-?-dire sur une certaine cat?gorie de perles : les A et les B. Ce n’est pas ? vous que je vais apprendre qu’elle ne sont qu’une quantit? infime de notre production. Effectivement, il pourrait peut-?tre travailler sur le march? du luxe et vendre ces perles ; mais ce sont celles que nous vendons le mieux : on n’a besoin de personne pour bien les ?couler.
Les japonais et les chinois nous ach?tent les autres perles : les C et les D. Ils sont responsables de 80% des achats de perle. Cela repr?sente 13 tonnes en 2011. Imaginez qu’ils apprennent ?a et qu’ils arr?tent de nous acheter.

Pensez-vous que cette analyse a ?t? faite en m?connaissance de l’?cosyst?me de la perle ?

Voil?. En fait, il s’agit de quelqu’un fortement impliqu? dans la bijouterie et joaillerie. Il est tr?s comp?tent avec un r?seau ?norme, dans la joaillerie, la vraie. Il faut savoir que dans la bijouterie, la perle repr?sente moins de 5% des ventes, ? l’?chelle mondiale. Comment voulez-vous que quelqu’un qui est sp?cialis? dans le diamant puisse faire une ?tude sur la perle alors qu’il ne la conna?t m?me pas ? C’est ?a qui nous pr?occupe.
Je constate qu’il y a une unanimit?, face ? cette ?tude, parce qu’elle pr?sente trop d’incertitude. Ce monsieur n’est pas sp?cialis? dans la perle.

L’id?e d’une centrale d’achat a toujours ?t? mal per?ue par le secteur.

Aujourd’hui on est 400 producteurs, il est toujours tr?s compliqu? de satisfaire tout le monde. (…) M. Cavalieri a certainement des propositions int?ressantes ? faire. Elles doivent se situer dans le cadre d’une organisation ? nous. On ne veut pas d’une organisation domin?e par le politique. L?, on apprend que la Maison de la perle serait l’actionnaire majoritaire de la future entit?. Nous ne voulons pas de ?a : ce n’est pas au politique de s’occuper d’un domaine priv?, on s’y refuse.

Baldassari Aline Bernard: "We do not want an organization dominated by the political"

Tahiti info: What is wrong with the strategic plan proposed by Gaetano Cavalieri?

Baldassari Aline Bernard: First, in principle. We gave two presentations Power Point last June, the presidency, saying vaguely what he saw as device: basically a purchasing and marketing strategy to sell the luxury market.
Many at the time were skeptical. Since then, there has been no consultation with professionals. Today, the country confronts us with this project, decided unilaterally.
For years, they are fighting to reorganize the upstream sector and not in terms of marketing. It is certainly a key point, but there are many problems in the production of which the government does not care.
Secondly, this project is very expensive: 79000000 XPF to study ... At this moment in time of crisis.
Finally, Mr. Cavalieri announced that his goal was to eliminate buyers historical Japanese and Chinese, as are our buyers for 80% of production today. For 30 years, we are producers, we sell our pearls - certainly not in the best of ways - but in the context of global economic crisis, it was proved last year that it was doing properly.

Cavalieri's analysis estimates that the market value of the pearl could be multiplied by a factor between 1.8 and 2.1, eliminating middlemen and going directly to retailers.

Mr. Cavalieri based its strategy on the luxury market, that is to say on a certain category of beads: The A and B. It is not that I will learn that it is a small amount of our production. Indeed, it could perhaps work on the luxury market and sell these pearls, but these are the ones that we sell the best: we do not need anyone to sell well.
Japanese and Chinese are buying other beads: The C and D. They are responsible for 80% of purchases of pearl. This represents 13 tonnes in 2011. Imagine they learn that they stop and buy us.

Do you think this review was made in ignorance of the ecosystem of the pearl?

That's it. In fact, there is someone heavily involved in the jewelery and jewelery. He is very competent with a huge network in jewelery, true. You should know that in the jewelry, bead represents less than 5% of sales worldwide. How do you want someone who specializes in diamond can make a study of the pearl while he does not even know? That's what concerns us.
I see that there is a unanimous response to this study, because it has too much uncertainty. This gentleman is not specialized in pearl.

The idea of ​​a central purchasing has always been misunderstood by the industry.

Today we are 400 producers, it is always very difficult to satisfy everyone. (...) Mr. Cavalieri was certainly interesting proposals to make. They have to be part of an organization to us. We do not want an organization dominated by politics. Here we learn that the House of Pearl is the majority shareholder of the future entity. We do not want that: it is not the policy to take care of a private domain, it does not.

 

[Caitlin]

Thanks. I could never collect these articles in French, yet in the Indonesian pearl market, most reporting is in French, so this is good stuff.

 

[Sarah]

Thank you, Cyril. You post wonderful articles. The slightly off translation coupled with the fact that I'm new makes them a little hard to follow at times. If I'm correct in understanding, Chinese progress with freshwater bead nucleation continues to increase uncertainty for the future of the Tahitian pearl industry. The head of the Tahitian Pearl Consortium wants to focus only on the high end luxury market, focusing on grade A and B pearls and controlling the price of these to ensure higher returns to the farmers. The goal is to exclude buyers, primarily from China and Japan, who buy the C and D pearls at lower prices only to mark them up and make profit from the pearls outside of French Polynesia. Others feel it would be foolish to exclude some of their biggest and best customers and eliminate the market for their lower grade pearls. Their higher grade pearls already sell easily, yet they make up only a small portion of the total harvest.

I'm not familiar with the politics of the disagreeing groups, but I assume with all the fees and expenses related to being a farmer, they need as many markets for their pearls as possible and are affected financially by these types of decisions more than any of the other groups.

(eta - My concept of the Tahitian Pearl Consortium as an existing entity was wrong in this post. See Cyril's next posts for additional information. I guess TPC is actually the brainchild/proposal of an extremely high paid consulting group, hired by the government.)

 

[Cyril Roger Brossard]

You are welcome.

Cette soci?t? ne s'attacherait qu'aux produits haut de gamme et se propose d’?liminer les interm?diaires japonais et chinois

It seems that they would like to create a society that would concentrate on the high end pearls in order to avoid having to sell those through Japanese or Chinese resellers.

I'll try to find time to review the french translation as to make it a bit more understandable. Please understand that google is very approximate, and that translating will take a lot of time (as to respect the "nuance" of the french language).

 

[Cyril Roger Brossard]

Tahiti Pearl Consortium : le projet controvers? du Pays pour sauver la perle
L’esprit du dispositif envisag? par le cabinet Gaetano Cabalieri & Co, ? la demande du Pays, visant la "r?organisation du processus de production et de commercialisation" des perles de culture de Tahiti, a ?t? pr?sent? vendredi matin 30 novembre alors que la Maison de la Perle devrait signer, dans le courant de la semaine prochaine, la convention de prestation avec le consultant international et lui verser un premier ch?que de 19.5 millions Fcfp HT ? ce titre. Avant le 31 d?cembre un deuxi?me versement de 13 millions Fcfp HT est pr?vu ? la remise du business plan ?chafaud? par l’expert italien, puis apr?s mise en place de la personne morale Tahiti Pearl Consortium et avant le 30 juin 2013, un versement de 29.3 millions HT, suivi par la lib?ration du reliquat de 3.2 millions Fcfp avant le 31 juillet 2013, date fix?e pour le d?but d’activit? de la centrale d’achat imagin?e par le consultant.

Moyennant une expertise de 65 millions Fcfp HT, tr?s controvers?e par les professionnels du secteur de la perle, le Pays compte restructurer enti?rement le commerce du joyau des lagons en cr?ant une centrale d’achat, ? capital mixte. Le Tahiti Pearl Consortium se donne l'ambition d'acheter toutes les perles produites sur le territoire et souhaite proposer l’image d’un fournisseur s?rieux sur le march? de la joaillerie, illimit? en quantit?, attentif ? la qualit? et ? la tra?abilit? des produits. Le point essentiel : il s’adresse directement aux clients de nos acheteurs traditionnels, japonais et chinois. Sp?cialiste du diamant, l'expert italien pr?conise de mettre en place, pour le commerce de la perle, un syst?me commercial inspir? de celui impos? par le conglom?rat dimantaire sud africain De Beers.

Multiplier par un facteur 10, la valeur ajout?e localement

La valeur ajout?e sur la perle r?alis?e en Polyn?sie fran?aise est de moins de 2.5% actuellement, estime le cabinet Cavalieri & Co, alors que le dispositif imagin? par le consultant pense pouvoir multiplier par un facteur 10 localement la richesse produite par le commerce de la perle, ? quantit?s produites ?gales. "Les producteurs b?n?ficieront de ventes meilleures", promet Steven Benson, du cabinet de consultants, "les marges augmenteront. Cela aura un effet positif sur la qualit? des perles (…) Lorsque la mar?e rentre, tous les bateaux sont ? flot", a aussi comment?, m?taphorique, le consultant.

Mais, outre le prix jug? ?lev? de la consultation de Gaetano Cavalieri, ?paul? par une ligne de 500 millions Fcfp au budget 2013, "? un moment o? le Pays est ? l’agonie", expliquent-ils, les professionnels redoutent l’intervention du politique dans un ?cosyst?me fragile : "tous les syst?mes qui sont en monopole, a fortiori contr?l? par un gouvernement, ne fonctionnement pas correctement", constatait mercredi Lo?c Wiart, pr?sident du syndicat des n?gociants de perles. "Ce qui marche, c’est la concurrence. Une concurrence suffisamment saine pour stimuler les acteurs de la fili?re, producteurs, n?gociants ou acheteurs ?trangers. Se retrouver tous dans une entit? contr?l?e par le Pays est inqui?tant. Il suffit de regarder la Maison de la perle : ?a ne fonctionne pas et 90% des acteurs ne sont pas dans cette Maison de la Perle."


La r?ussite du Tahiti Pearl Consortium tient aussi ? l’adh?sion des producteurs ? ce projet. Professsionnels dont les 9 GIE et les quatre syndicats de producteuyrs ont clairement expos? leur opposition au principe qualifi? de "tentative de hold up par le gouvernement", jeudi dans un communiqu? o? ils demandaient la d?mission du ministre en charge de la Perliculture, Temauri Foster.

Interrog? sur ce fait, Oscar Temaru ?voque des professionnels qui souhaitent pr?server leurs privil?ges :

Les professionnels se pr?tendent unanimement oppos?s ? ce projet de Consortium charg? de la commercialisation de la perle de Tahiti. Comment esp?rez-vous les convaincre ? se joindre ? ce projet ?

Oscar Temaru : Les politiques ont une grosse responsabilit? dans la gestion de ce pays. Ce dispositif, que nous mettons en place aujourd’hui, aurait d?j? d? ?tre install? il y a tr?s longtemps. On a laiss? faire. Et aujourd’hui, tout le monde le sait, notre perle est brad?e sur le march?. Certains tirent profit de la situation et ce sont surtout ceux-l? qui ne veulent pas que ?a change. La mise en place de ce consortium va permettre d’ici quelques temps de contr?ler la production. (…) Aujourd'hui, la production est contr?l?e par les n?gociants japonais, chinois et locaux. Il faut changer ?a. Ce consortium permettra ?galement de valoriser cette perle, qui est unique. Avec le r?seau de M. Cavalieri, nous sommes persuad?s que la perle de qualit? va reconqu?rir la confiance des acheteurs.
Je ne vois que l’int?r?t de tous, dans cette affaire. Et je pense qu’une fois le message pass?. Tout le monde comprendra que ce projet est dans l’int?r?t de tous, aussi bien les producteurs que les n?gociants. (…) J’esp?re que nos perliculteurs comprendront le message et qu’il y va de leur int?r?t.
(…) Il faut que les perliculteurs comprennent que toutes les perles seront achet?es. Ils n’auront plus aucun probl?me. Et cela n’est pas du tout le cas aujourd’hui, lorsque certaines personnes tirent profit de la situation.

Si tout est si profitable ? tout le monde, pourquoi pensez-vous que les perliculteurs s’inqui?tent ?

Oscar Temaru : Il y a un peu de manipulation derri?re tout cela. On le voit bien. (…) Je suis l? pour remettre de l’ordre dans ce pays, partout o? il y a de la corruption. Je parle de la corruption en g?n?ral et de ce que j’en connais dans ce milieu l?. Les petits perliculteurs n’ont pas les moyens de toucher les grosses bijouteries ? l’international : ils sont pris en otage. Je parle des n?gociants en g?n?ral, qu’ils soient locaux, japonais ou chinois. L’industrie de la perliculture est prise en otage et les fermiers avec. Ce que nous voulons mettre en place, c’est la rationalisation de notre perliculture et il en va de l’int?r?t g?n?ral. J’esp?re que les perliculteurs comprendront rapidement qu’il en va de leurs int?r?ts en particulier.

 

[Cyril Roger Brossard]

Translated:

Tahiti Pearl Consortium: the controversial project to save the pearl of Tahiti.

The objective of the proposed scheme by the firm Gaetano Cabalieri & Co, at the request of the country, for the "reorganization of the production process and marketing" of cultured pearls from Tahiti, was presented Friday morning November 30 while the House the Pearl should sign in the course of the next week, the service agreement with the international consultant and pay him a first check of 19.5 million Fcfp HT as such.
Before December 31, a second payment of 13 million Fcfp HT would be provided for the delivery of the business plan put together by the Italian expert, and after implementation of the corporation Tahiti Pearl Consortium and before June 30, 2013, a payment of 29.3 HT million, followed by the release of the remaining 3.2 million Fcfp before July 31, 2013, the date set for the start of the activity central purchasing devised by the consultant.

Despite being highly denounced by all professionals in the pearl industry, such expertise, that would cost 65000000 VAT Fcfp , would completely restructure the gem trade lagoons creating a central purchasing mixed capital.

Tahiti Pearl Consortium provides an ambition to buy all the pearls produced in the territory and wants to offer an image of a serious supplier to the jewelry market, in unlimited quantities, attentive to the quality and traceability of products.
The key point: it concerns directly the customers of our traditional buyers, Japanese and Chinese.
Specialist in diamond, the Italian expert recommends to implement for the pearl trade, a trading system based on the one imposed by the South African conglomerate De Beers.

Multiply the value added locally by a factor of 10…

The value of the pearl made in French Polynesia is less than 2.5% today, says the firm Cavalieri & Co, while the system devised by the consultant expects, for the same volume produced, to multiply by a factor of 10 the value of the pearl trade.

"Producers will benefit from better sales" promises Steven Benson, the consulting firm, "margin increase will have a positive effect on the quality of pearls (...) When the tide comes in, all boats are afloat," he metaphorically commented.


But, besides the price of Gaetano Cavalieri’s consultation considered high, backed by a line of 500 million budget Fcfp 2013, "at a time when the country is dying," they explain, professionals fear the intervention of the politics in a fragile ecosystem, "all systems are a monopoly, a fortiori controlled by a government, not working properly," noted Wednesday Lo?c Wiart, president of the union traders pearls. "What works is the competition. Competing in healthy enough environments to stimulate all players in the industry: producers, traders and buyers. Finding it all controlled by the country is worrisome. Consider the House of the Pearl, it does not work and 90% of the players are not from this House of Pearl. "


The success of the Tahiti Pearl Consortium also depends on the opinion of the producers. Professionals whose 9 GIE and the four unions have clearly stated their opposition to the principle called "hold-up attempt by the government," in a statement Thursday that they were demanding the resignation of the Minister in charge of pearl culture, Temauri Foster.

Asked about this, Temaru evokes professionals who wished to preserve their privileges:

The professionals are said to be unanimously opposed to this project Consortium responsible for the commercialization of pearl. How then do you hope to convince them to join this project?

Temaru: Politicians have a big responsibility in the management of this country. This device, which we put in place today, should have already been installed long ago. It has been done. And now, everyone knows, our pearls are dumped on the market. Some take advantage of the situation and it is mainly those who do not want that to change. The establishment of this consortium will allow a few time control production. (...) Today, traders mainly control the production: Japanese, Chinese and local. We must change that. The consortium will also develop on the fact that this pearl is unique. With Mr. Cavalieri network, we are confident that the quality pearl will regain the trust of buyers.
I concentrate solely on the benefit of all in this case. And I think that once the message passed. Everyone will understand that this project is in the interest of all, both producers and traders. (...) I hope that our pearl farmers will understand the message and that it is done in their interest.
(...) They must understand that all the pearls produced will be purchased. They will have no problem. And this is not the case today, when some people take advantage of the situation.

If everything is so beneficial to everyone, why do you worry about the pearl?

Temaru: There is a bit of manipulation behind it. Obviously. (...) I'm here to restore order in the country, wherever there is corruption. I'm talking about corruption in general and I know that in this environment there is. Small pearl producers do not have the means to reach large international jewelers: they are taken hostage. I mean traders in general, whether local, Japanese and Chinese. The pearl industry is taken hostage and with it so are the farmers. What we want to establish is the rationalization of our pearl and it is in the general interest of everyone. I hope that the pearl producers will quickly realize that it is mainly in their interests.

 

[Sarah]

Ah, yes, the additional information is helpful. The formation of the Tahitian Pearl Consortium and it's resulting restrictions is actually the recommendation of a government paid consulting firm and hasn't been adopted and finalized yet. Somehow that wasn't clear to me the first time around! The articles make it sound as though the vast majority of people inside the industry aren't behind this idea at all. In addition to drastically changing the industry, it would certainly be the end of my Tahitian pearl purchases. Looks like they'd purposely be priced far beyond the reach of average consumers.

 

[Cyril Roger Brossard]

I guess TPC is actually the brainchild/proposal of an extremely high paid consulting group, hired by the government.

Yes, it is the way it is presented in the article, the french forum is filled with negatives remarks, not all remarks are constructive though...
No development as of this hour (not in the news that is...).

 

[Cyril Roger Brossard]

December 1st.
500 million for the Tahiti Pearl Consortium

Posted Saturday, December 1, 2012 at 1:00
The Board of Directors of the House of Pearl has validated the agreement in between the country and Gaetano Cavalieri for his study of the pearl industry with the goal to create the Tahiti Pearl Consortium. Fcfp 500 million are foreseen in the 2013 budget to start the new marketing structure for pearls.
Professionals are against the proposed creation of the Tahiti Pearl Consortium, arguing that pearls marketing should remain a matter of the private sector.
The government has no intention of abandoning and this project will ascend with or without the professionals.
"We do not want to disrupt anything, we are men of peace and we want good relations with everyone," said Gaetano Cavalieri, President of the International Confederation of Jewellery (CIBJO)
Oscar Temaru had done things well. The press was first received yesterday morning for an explanation of Tahiti Pearl Consortium and professionals should have been in the afternoon. But it did not go as planned. The presentation of the Tahiti Pearl Consortium to the press occurred as scheduled. Gaetano Cavalieri and his technicians at his side, sat to the right of Oscar Temaru, while the Minister of Marine Resources, Temauri Foster sat on his left. They took turn to answer our questions, questions raised by the fear of the professionals. The experts then explained at length, in English and French, their intentions. Here are four key points that the structure Tahiti Pearl Consortium (TPC) will establish:
-The aggregation. "We will receive the highest quality merchandise from multiple vendors and we will establish long-term contracts with high quality jewelry. If you must provide 2000 pearls to Cartier, TPC would have the capability to provide these pearls to established companies and make this sector a sustainable industry. "
- The quality control. "TPC will sort the pearls and ensure that only top quality pearls will be sold on international markets. Each pearl will be provided with a number and a certificate to provide traceability. "
- Direct sales. "We will try to shorten the distribution chain between TPC and buyers in the international markets. We will increase the value of the product itself in order to increase the overall value. "
- Branding. "TPC is synonymous with quality products and increase the intrinsic value of Tahitian pearls."

With these four objectives, TPC should save the pearling industry. Probably against the professionals themselves since they are still very much against the project. They are incensed to see this government continue in this way. The professionals were present to the rendezvous fixed by the government for a new explanation. Five minutes later, everyone went out angry. Insisting that the press would be at their side, the president of the country invited them to leave if they were not happy.
It has not failed, they left to meet the elected opposition. An appointment with Edward Fritch was the program of the afternoon. "We are going to lobby the 500 million allocated to the operation; the TPC will not be voted at the meeting," they explained. Because it is question to pay 79 million Fcfp to Gaetano Cavalieri, President of the International Confederation of Jewellery (CIBJO) and head of the company Gaetano & Co, for his study on the sector and 500 million Fcfp to start the new structure Tahiti Pearl Consortium. Already the Board of Directors of the House of Pearl, on Thursday, validated everything. There must still be the assembly vote. But professionals say they represent "4000 votes". But Antony G?ros, vice president and Temauri Foster, Minister of Marine Resources, ensured that regardless of the professionals agreeing or not, the structure will be created.

"You know in this country, corruption is everywhere. This is one of my fights. it's part of my political struggle. Of course, the implementation of the TPC will disturb many people. Especially those who are accustomed to doing business on the backs of those who work hard every day to produce the pearl, said Temaru. Today, it is the Japanese, the Chinese, who control the production and marketing of our pearl. It is not acceptable.
All successive governments have let this happen. Us, we will not let that happen. "Tahiti Pearl Consortium therefore will buy all pearls, the best for the upscale buyers and a subsidiary market could be created for pearls of lesser quality. "Our producers no longer have to worry about marketing their pearls. They take care of their farm, the production of fine pearls and TPC buys all their pearls, "said the president yet. Sure, Gaetano Cavalieri knows this world: "It is a resource of our country that must be managed properly. This is how the government has decided to engage the services of an expert in that sector; the CIBJO is recognized by the United Nations, which will allow us to restore the confidence of buyers worldwide. CIBJO is recognized NGOs since 2006, "according to his boss and has the" consultative status with Economic and Social Council of the UN. " From the sale of pearls to the reinstatement of Polynesia on the list of countries to be decolonized, there is only a step ...
"Politics is not my business. I'm totally out of politics, "has assured Gaetano Cavalieri but it did not convince the professionals who see the country encroaching on their turf:" Whenever the territory is involved, it was chaos. Look ATN, the problem is the political. Watch the l'Epic Vanille... The audience did not interfere. "But it looks like he's going to do it anyway.”

 

[Cyril Roger Brossard]

Temaru, president of the Country
"It has been done and today is our pearl is devaluated"
Why implement the Tahiti Pearl Consortium?
"Politicians have a big responsibility in the management of the affairs of this country. In fact, the system we put in place today should have been implemented long ago. It has been done and now our pearl is sold off. There are benefits and who are especially those who do not want that to change. The establishment of this consortium will allow some time by controlling production. This is not the case today, production is controlled by the Japanese, the Chinese. I mean both local and foreign traders. This is the situation of the pearl today, we must change that. The consortium will help to upgrade the pearl. With Mr. Cavalieri network, we believe that quality pearl will regain the confidence of our buyers. I do see the interest of everyone in this case. Everyone can benefit from it. Both producers and traders, as the pearl will gain traceability. It is a question of discipline to implement. I hope the pearl producer will understand that it is in their interest. "

Mr. Cavalieri has relations with the UN, it was decisive in the choice of dealing with him?
"It is sure that with his reputation internationally recognized by the United Nations, it is clear we are dealing with professionals, this will help upgrade our pearl internationally. It has relationships with all the most famous jewelers in the world. This is just one more for our country. Must include the pearl they will not have to worry. They descend to Tahiti, they sell their beads and they return to their farm. This is not the case today and there that takes advantage of this situation. "

Why professionals are against this project?
"There's a bit of manipulation behind it. It is disturbing. "

You were talking about corruption?
"Yes, I'm here also about that, to restore order in the country, across this country."

You mean that producers, traders are corrupt?
"I'm talking about corruption in general. I speak of what I know in this trade. Small pearl producer do not have the means to reach large international jewelers. They are taken hostage. I mean traders in general, local, Japanese, Chinese. The pearl industry is taken hostage and with them are the farmers. We want to implement the rationalization of our pearl and it is in our interest. "

You have no fear of being held hostage by Mr. Cavalieri?
"No, nobody has ever managed to take me hostage."

Temauri Foster, Minister of Marine Resources
"They do not make the effort to work for the quality"
How the TPC will be funded?
"The TPC must have the support of the country since budgetary allocation was made 500 million that will build and implement the structure and its functioning. Subsequently, other sources of funding will support the project. There are meetings planned with partners, the private sector who will join the program and seek the support of banks to provide additional financial and allow TPC to operate in the best conditions. The financial position is because we have taken decisions at the government level to repay this amount to the House of the pearl has included in its budget no later than yesterday (when CA Thursday, ed) and the government has committed. "

Professionals are unanimous against it. How do you convince them?
Temaru: "They will be convinced when they see the device in place."

You hope the structure will be profitable from when?
Temaru: "It will not be overnight." Team Cavalieri: "We are here to collect information on the market and we will implement our business plan. Compared to the study by Dr. Cavalieri, which aimed the high quality pearls, we expect to reach the equilibrium point of profitability in a relatively short time. We cannot give an exact date yet. "

You announce to increase the quality of all productions, why not have previously created an AOC?
"The various ministers who have succeeded have continued to advocate quality. We always asked the producers to make an effort on the quality but our messages were not perceived as pearl preferred quantity over quality is what has degraded the quality of our pearls and induced a drop of our prices. TPC would benefit from the international market of high jewelry to sell these products in sufficient quantities to allow the pearl to quickly recover. In the analysis of Mr. Cavalieri is this category of pearls will straighten the chain pulling prices up. Other types of pearls will not be excluded but it will be another market that will be searched by TPC. "

The pearl producers say the high quality represent only 5% of their production.
"This is what they see today, but it is because they do not make the effort to work for quality. But it is possible to reach the figures of 20% quality. If we get there, we will achieve the results that the study of Mr. Cavalieri because we touch more great jewelry, which he has knowledge of the network. Today the percentage of grade A is between 5 and 7%. We asked them to make an effort to produce between 10 to 15% of that quality. "

If they had the recipe to make the grade A, they would.
"Before they knew how to do but when you forget the quality in favor of quantity because it is easier ... just take the techniques they already know, to limit the production and care more for pearls in order to have a superior quality. "

Who will fix the price of pearls?
"It will be a discussion that will be decisive between aspects of quality and standards set by a team of scientists and producers."

- A shock treatment
"The main reason for our intervention is that the pearl market is difficult. We see that the distribution system of pearls on the international market does not benefit the local area. The result is that production decreases and the income derived from them also decrease. Because of this pressure, the producers are trying to reduce the production cycle. This has the consequence that decreases the quality of pearls. We entered a vicious circle difficult to counter and if we do not give a shock treatment, one can truly fall. Those who suffer the most are the small producers because they have limited room for maneuver. "

- Increase the share of profits up 23%
"The House of the pearl hold 51% share of the Tahiti Pearl Consortium. The remaining shares will be offered for sale to other members of the pearl industry in French Polynesia. This is a company that is 100% Polynesian, Dr. Cavalieri has no action in it, it is not a hostile takeover of the pearl industry. TPC will be judged on its ability to generate profits, which come from the sale of quality beads on the high-end markets. (...) Producers or traders have the choice to work or not with the TPC. (...) For small producers, TPC will provide economies of scale that they cannot get so far. These small producers cannot sell their beads on international markets, but TPC will offer this possibility. (...) If you look at the current situation, the share that goes in between the moment the pearl is produced and when it is sold, it is only 2.5% in the pearl industry. We believe that if we can reach the big names in the distribution of the jewelry market, eliminating in the process the wholesalers in Hong Kong and Shanghai, it can potentially increase the share of profits up 23%. "

- The catalyst to "stop the downward spiral"
"TPC producers to buy pearls at a higher price that what they currently sell and so it lead to higher profit margins. TPC will also support a branding program that will increase the intrinsic value of the products. The percentage of profits that TPC will generate will then revert to its members. They will therefore receive such dividends pro rata to the amounts they have provided to TPC. This still results in an increase in profit margins.
We also plan to set up a subsidiary of TPC who will concentrate on the lower quality pearls and enter into long-term contracts with jewelers who buy this type of quality. The numbers we currently have: high-quality pearls represent 15% of total production. But officials at the Marine Resources believe that with better production techniques, we can increase this figure by 15 to 25%. We believe that we can stop the downward spiral. We can be the catalyst that will stop the chain reaction. I will say that when the tide comes in, all boats are afloat. "

 

[Josh]

Interesting stuff. My immediate thought is that if the "professionals" are opposed, it is worth trying out. The professionals are mostly local pearl buyers who have their share of blame in holding the heads of pearl producers under water with starvation prices.
The other side is that the government has never shown its competency in managing various affairs so to believe that it could handle something as vastly complicated as distributing untold quantities of pearls to a myriad of different buyers is more than hard to swallow. Distribution, PR, customer service and everything else that go into getting pearls to market are all hard and demand focus and attention and perseverance.

 

[CortezPearls]

Thank you for the articles...it was quite a good read. Over the years stories like this one just seem to melt into each other. Let us hope these politicians really want to do something good for the Tahitian Pearl.

 

[Cyril Roger Brossard]

Interesting stuff. My immediate thought is that if the "professionals" are opposed, it is worth trying out. The professionals are mostly local pearl buyers who have their share of blame in holding the heads of pearl producers under water with starvation prices.
The other side is that the government has never shown its competency in managing various affairs so to believe that it could handle something as vastly complicated as distributing untold quantities of pearls to a myriad of different buyers is more than hard to swallow. Distribution, PR, customer service and everything else that go into getting pearls to market are all hard and demand focus and attention and perseverance.

Do you mean that pearl farmers may be in favor of such set-up?
I would (after reading all articles) be rather in favor, given that Cavalieri's set up will indeed be up to the theoretical organization of the operations.

Thank you for the articles...it was quite a good read. Over the years stories like this one just seem to melt into each other. Let us hope these politicians really want to do something good for the Tahitian Pearl.

You are welcome. Information is after all the backbone of comprehension.

 

[Cyril Roger Brossard]

Asked about the absence of councilors of the opposition to this presentation, besides two representatives of the group Ia Ora Fenua you, "I say it is a good sign: it means that there are almost more opposition and everyone supports this project, "he joked before Temaru recognize seriously:" No, there are other boards this morning to the bank Socredo to Huilerie of Tahiti, the OPT: everyone is taken everywhere. "

The solution advocated by the consultant based on a reorganization of trading Tahitian pearl around a central purchasing mixed capital, Tahiti Pearl Consortium, 51% owned by the Maison de la Perle, the rest of the capital is open to industry professionals. Through stringent quality specifications, traceability of the pearls, ensuring an equitable economy, the organization is the market for fine jewelry bypassing the passage buyers historical Chinese and the Japanese pearl.


The project is running, while producers and traders have clearly stated their opposition to the principle of political intervention in their affairs, last week. "We talk about producers but in this group, I observed that 90% of members are traders noted Temaru when asked about the protest movement, before adding," We are accused of using public funds to implement this device, I say that it is an investment that we realize: there will be return on investment very quickly. Then, with the market we want to reach, this gem will quintuple its value within a very short time. "

The study prepared by the consulting firm provides the effect of multiplying by 12.5 the sales volume of pearls made directly to retailers, between 2013 and 2018, bringing the turnover of trade in this jewel of 1.025 billion Fcfp to 7.9 billion Fcfp and multiplying by a factor of 10 the value added locally by the trade of cultured pearl of Tahiti.


Maina Sage: "I am against the principle of commitment in a new SEM (Soci?t? d'?conomie mixte)"

What did you think of the presentation?

Maina Sage: This is a project that engages the country in large amounts and wishing to work on the reform of this sector as desired by the government. (...) What I regret is that this device is not integrated into a comprehensive program, a comprehensive strategy to overhaul the sector. On the basis of a diagnosis a little more substantial - which I think is missing today. One would have to compare this measure with those who, in my opinion, are a priority and should focus on the area of production: we try to answer - a little too quickly, I think - the problem of the value of the pearl, through marketing. We know that price is a reflection of a balance between supply and demand. I wish that we ask the right questions over the issue of the pearl. (...) Solutions have already been mentioned, with a plan to reform the sector presented in 2010, revolves around proposals such as labeling, traceability, introduction of production quotas, direct aid to the attention of producers to operate concessions and compliance work ... This is all that we want to talk. I'm afraid that the TPC is perceived as a panacea in response to government inaction on these points.

The agreement should be signed in the afternoon, binding the Country Office and Mr. Cavalieri for the implementation of the Tahiti Pearl Consortium. What do you think of the study outlined by the consultant this morning?

Maina Sage: What bothers me is that you do research on topics that have already been the subject of numerous studies and for which we have an extensive documentary source: recommendations have been made, but never implemented. Now, Mr. Cavalieri is knowledgeable in the field of fine jewelry, his advices can be interesting for the Maison de la Perle. All this must be taken by the country to serve a political strategy for the pearl. If actions are implemented to organize production, we can certainly afford to have a look for additional channels of distribution. Because that is what is interesting in the reflection is conducted. Not everything is to be thrown to the trash: professionals recognize, Mr. Cavalieri is someone who can provide expertise in this area. Now, let’s do things in order.

What is your attitude during the debate on the 2013 budget, the evocation of credit lines provided for this project consortium?

Maina Sage: Quite apart from the issue of the pearl industry, with an overview of the budget problems we are part of a recovery plan that asks everyone to reduce expenses, it is question of the closure of public schools, we talked about voluntary retirement plan for the administration ... do not you think it is inconsistent in this context, to speak of the creation of a structure with a minimum investment of 500 million Fcfp?

Will you be opposed?

Maina Sage: Honestly yes. I am against the principle of commitment in a new SEM as it is against the current of a recovery plan that we are trying to lead.
I think what is proposed can be achieved without necessarily creating a new institution.

 

[Caitlin]

These articles allow us to begin to understand the issues in govt intervention and the best interests of the growers. Makes me wish the growers would form a consortium to get their fair prices...and dictate to the buyers, not the other way around.

 

[Cyril Roger Brossard]

December 6th 2012
"Do not touch my pearl", "NO to TPC": a group of pearl farmers protested before the Assembly.


Papeete, December 6, 2012: Thirty pearl producers gathered around the motto "Do not touch my pearl" are mobilized right now before the Assembly of French Polynesia to protest against the project "Tahiti Pearl Consortium" led by President Temaru and his government.

Nine GIE of pearl producers, GIE Rikitiea, Poe Raromatai, Poe O Tahiti Nui, Pearl's Manihi, Tuamotu Pearl, Tahitian Pearls Auction, Pearls Tuamotu-Gambier, Poe Rava Nui, Poe o te ao Nui, and unions of small and medium producers and SPPP SPMPPF are present, carrying placards "no to TPC!"

They challenge the political interference in their business and hope that the budget line 500 MF attributed to the creation and funding of the Tahiti Pearl Consortium in the draft 2013 budget presented today by the Country of Assembly will be deleted. "We prefer that the money be given to the hospital or RSPF" proclaimed Moerau Haoatai representing here five GIE. "My colleagues are busy preparing for an auction to be held Saturday in Papeete, we have 420,000 pearls to be auctioned!" She says again.

 

[Cyril Roger Brossard]

December 10, 2012
Apr?s la rue, les couloirs de l’Assembl?e, c’est maintenant vers le tribunal que se tournent les professionnels de la perle.

Dans un communiqu? envoy? aux m?dias, le Syndicat des n?gociants en perles de culture de Tahiti et le GIE Tahiti Pearl Auction d?noncent la passation de la convention de prestation pass?e entre la Maison de la Perle et Gaetano Cavalieri.

Dans leur requ?te en r?f?r? pr?contractuel, dat?e du 4 d?cembre dernier, tous deux demandent au Tribunal administratif de faire annuler la dite convention au motif que l’attribution du march? ? Gaetano Cavalieri n’a pas fait l’objet d’un appel d’offre.



After the street, the corridors of the Assembly, it is now to the court that turn the pearl professionals.

In a statement sent to media, the Union of traders pearls of Tahiti and Tahiti Pearl Auction denounced the awarding of the service agreement entered into between the House and the Pearl and Gaetano Cavalieri.

In their request for pre-contract referral, dated December 4, both ask the Administrative Court to annul the said agreement on the grounds that the award to Gaetano Cavalieri has not been a call for offer.

 

[Cyril Roger Brossard]

Grounds for an annulment...

The administrative Court (TA) has canceled this Wednesday (12/12/12) morning the controversial service agreement entered into between the House and the Pearl and Gaetano Cavalieri with the goal to create the Tahiti Pearl Consortium.

In its order, the President of TA gives reason to the arguments of the Union of traders pearls of Tahiti and Tahiti Pearl Auction.

The latter asked, in their application, the cancellation of the procedure on the grounds that the award to Gaetano Cavalieri has not been a subject to a call for tender.

Explanations of Mr. Vincent Dubois, counsel for the applicants:


...let's be reminded tonight in the French Polynesia Assembly, when adopting the 2013 budget, that $ 500 million were allocated to "House of Pearl" to create the Tahiti Pearl Consortium. The discussions on this new structure had given rise to heated exchanges between the government and the opposition...

recorded under n# 1200676:
annulment of the processes of creation of TPC
"maison de la perle" will pay 800000F CFP to the syndicate.

 

[Caitlin]

I can hardly wait for the next chapter in this dramatic saga.