Arctic Circle eyes March start of exports to Guam

Arctic Circle Air, the cargo airline that aims to revive the CNMI’s agriculture industry, announced that it would start transporting local produce from the CNMI to Guam in March.

Company officials made the announcement during Wednesday’s meeting at the Northern Marianas Trades Institute in Lower Base, which was attended by some 60 farmers who have expressed interest in the venture.

The meeting served as an opportunity for company officials to provide more information and answer questions from local farmers regarding Arctic Circle Air, its setup and arrangements, expectations, and contract provisions.

Paul Zak, vice president for sales, disclosed that Arctic Circle Air will have two flights a day—one in the morning and another in the afternoon—for three to four times a week. The company will charge $0.50/lb for incoming and outgoing cargo, which he said is half the price of Cape Air. Discounted rates may be available depending on the cargo load and quantity.

The company, Zak added, will be working with Triple B Forwarders in the meantime when coordinating delivery once cargo lands in Guam. “Down the road, we’ve already looked at a facility down in Harmon Industrial area. We just want to see how things go, how big should we go,” explained Zak.

He emphasized that Arctic Circle Air will “wear two hats” or have two functions: as a shipping service by bringing products to and from Guam; and as a “marketing” agent for local farmers by buying their produce and selling it to off-island markets.

Arctic Circle Air, which will be doing business as Marianas Harvest, will package the produce from local farmers so that farmers will just have to provide the goods that will be packed, labeled and sold in Guam.

Guam imports over $2 million worth of fruits and vegetables from the U.S. mainland and Korea.

Tony Pellegrino, Arctic Circle Air president, said that the CNMI can supply at least a portion of Guam’s agriculture needs and this will happen with the support and commitment of local farmers in this cargo airline. A number of hotels and stores are already intent in buying produce from the CNMI, Zak noted.

Zak said they have already identified produce that are “highly desirable” in Guam, including tomato, pepper, root taro, sweet potatoes, cucumbers, cabbage, and eggplant.

These produce were listed in a form that was distributed to farmers at the meeting. Farmers were asked to fill out the form to identify the size of their farm plots and the type of produce they could possibly sell to Marianas Harvest.

Zak explained that the form will help them work with local farmers in identifying which agricultural products would be more efficient for them to produce and sell in larger quantities, based on Guam’s market demand.

Once these produce are delivered to Marianas Harvest, Zak said they will weigh, inspect, test the products for pesticides, among others. “You get paid when you deliver the goods,” he said.

Zak enumerated key points that will be identified in the contract to be executed between Arctic Circle Air and local farmers, such as what produce will be provided and its specifications, quantities required, delivery date requirements, and responsibilities of each party.

Agricultural consultant Isidoro T. Cabrera pointed out that local farmers can also look at supplying “value added” products to the Guam market. Value added refers to those products that are processed from local produce such as sweet potato chips or coconut oil.

Cabrera said he will personally visit each of the local farmers who’ve expressed interest in the project. The visits, he said, will help them identify which farmer will produce what product to maximize the potential of farm plots.

Many farmers agreed that the project will be a tremendous help for them who, for a long time, have been unable to sell their goods outside the local market.

Jesus M. Castro, who farms government land in Kagman, said this project is “a farmer’s dream” that would help them market their produce.

“Since the garment industry left our islands, sales of produce has been slow and we greatly need to expand our market,” he told Saipan Tribune. “This is the greatest opportunity to happen to farmers in the last three decades.”

Some farmers said the project will be beneficial not only to local farmers but also to those who ship other cargo to and from Guam while others touted the project as one that would engage future generations into farming once again.