ASIAN JOURNAL OF MANAGEMENT RESEARCH Online Open Access publishing platform for Management Research © Copyright 2010 All rights reserved Integrated Publishing association Review Article ISSN 2229 – 3795 ASIAN JOURNAL OF MANAGEMENT RESEARCH 139 Economic Contribution and Analysis of Supply Chain of Tongan Squash Pumpkin Industry Anand Chand, Suwastika Naidu University of the South Pacific, Private Mail Bag, Suva, Fiji Island. naidu_s@usp.ac.fj ABSTRACT Agriculture is the most crucial sector in the South Pacific Island Countries and similarly in Tonga it plays a pivotal role in economic growth and development. In particular, the export of squash pumpkins from Tonga to Japan is one of the few successful stories of agricultural export from the South Pacific Island Countries. During 1990s, the squash pumpkin industry uplifted the Tongan economy from negative growth to a 5.4% growth in 1999 (Asian Development Bank, 2005, as cited in KautokeHolani, 2008). This demonstrates the greater economic importance of squash pumpkin industry in Tonga. The squash pumpkin industry further contributes to the Tongan economy via its backward and forward linkages in the supply chain. Against this backdrop, this paper will examine the economic contributions of the squash pumpkin industry in Tonga. The paper will also analyse the supply chain of the Tongan squash pumpkin industry. Keywords: Supply Chain Management, Squash Pumpkin, Employment, Export Earnings, GDP, Stakeholders, Economic Benefits, Constraints, Challenges 1. Introduction The production of squash pumpkin began in 1987. Japan is the largest importer of Tongan squash pumpkin with approximately 12,000 tons imported each year (Felemi, 2001: 8). On average, trade statistics indicate that the squash industry alone accounts for 70% of all agricultural exports, contributes around 50% towards Tonga’s total export earnings, contributes 25% to the GDP and employs approximately 38% of people employed in the agriculture sector (Tonga Department of Statistics, 2010). In this context this paper will examine five major aims related to the Tongan squash pumpkin industry. First, it will examine the economic contribution of squash pumpkin industry to Tonga’s economy. Second, it will highlight the background of the squash pumpkin industry, the various stakeholders present in the industry and the institutional setup of the squash industry. Third, it will map the squash pumpkin supply chain and discuss the various node of the supply chain. Fourth, it will identify the various problems and constraints of the squash industry. Finally, it will discuss whether there is opportunity for value adding and the uncertainty of future export in the Tongan squash pumpkin industry. 2. Literature Review To date, few scholarly articles have been published that have rigorously analysed the Tongan squash pumpkin industry by using a supply chain analysis. Only a few academic articles have