Lots, I do not think that supply and/or manufacturing is going to be an issue. My understanding is that Fiji Kava have MOUs with KAP and Tutu who are equipped to supply our current needs. In 2022FY they increased their commercial farming network to include another 12 farming contracts across Fiji. Plants are available for harvest at all times and as they are now more spread out there is less chance of one single event creating a supply bottleneck.
I believe the issue is getting stock through customs and rapid global expansion. In December more supply was sent to Australia and the US was left wanting. I think the US is now enjoying supply and Australia is wanting. We also may have just sent lots of tonnage to the US to supply the Kava bar contracts. This bottleneck and any bottleneck around customs and inspections should be rectified in the coming months with more supply on more ships out of Fiji and less inspections by customs officials due to quality assurance and random inspection agreements.
CCO Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
