UK promoting PNG coffee
by PNG Business News - April 04, 2022
According to the British High Commission in PNG, Papua New Guinea's specialty coffee has consistently received top cupping scores for its unique and distinctive single-origin Arabica coffee.
The coffee was pushed by the UK's trade partnerships programme (UKTP), which was provided through the International Trade Centre, Banz Kofi, and the PNG Coffee Industry Corporation, according to the commission.
The speciality coffee was presented in the center, which was chosen by smallholders from PNG's lush volcanic soil.
UKTP has assisted coffee farmers and exporters in PNG in gaining market recognition for high-quality speciality coffee and connecting producers with buyers, benefiting whole communities along the agricultural value chain.
British High Commissioner to PNG Keith Scott said: “When the UK and PNG signed an economic partnership agreement in 2019, export promotion in targeted sectors was an important element.
“PNG coffee is the best in the world. Increasing access to the large UK speciality coffee market, and beyond, ensures new sales for participating companies and offers real benefits to local coffee-growing communities in PNG.
“UK support will also enable PNG speciality coffee to be showcased at the London Coffee Festival, the Food and Drink Expo in Birmingham (April 25 to 27) and the Speciality Coffee Association World of Coffee event in Warsaw, Poland, in June.
Reference: The National (31 March 2022). “UK promoting PNG coffee”.
PNG Business News - April 08, 2021
Chamber: Businesses are Hoping for Recovery in the Coffee Industry
According to the Goroka Chamber of Commerce and Industry (GCCI), business is sluggish in Goroka, Eastern Highlands, but there is hope that the situation will change when the coffee industry picks up. In a market update, GCCI president Chris Anders said that coffee has always had a significant influence on the local economy. “Business has been slow the last few weeks, the main coffee crop in the Eastern Highlands should start to come through in the next few weeks,” he said.“This will put some cash into the economy and business should pick up.” According to the Coffee Industry Corporation, the province is second only to the Western Highlands in terms of coffee production. The province's largest cash crop is coffee. Coffee remains PNG's second-biggest agricultural export earner, contributing K2.4 billion in export revenue between 2014 and 2018 and processing around 259,000 tonnes of coffee beans, according to figures from the Agriculture and Livestock Department. Meanwhile, Anders claimed that the majority of companies complied with the Covid-19 pandemic controls. “But the people are not social distancing and not all are wearing masks which is a concern,” he said. “The main market is still a concern as this is where a large number of people gather.” Goroka market is currently at Peace Park.
PNG Business News - April 12, 2021
Governments Struggle with Providing Facilities, Says Study
Governments in some coffee-producing countries have struggled to provide facilities that encourage the cultivation and processing of high-quality coffee. Strategies for improving coffee production and processing in Papua New Guinea: Lessons from the top five coffee-producing countries, a report by the PNG National Research Institute (NRI), highlighted the country's coffee production and processing and proposed development strategies based on lessons learned from the top five coffee-producing countries in the world. Brazil, Vietnam, Colombia, Indonesia, Ethiopia, and Papua New Guinea were among the six coffee-producing countries studied across four continents. The study's abstract can be found below. Introduction Coffee is the second most important agricultural crop in Papua New Guinea (PNG), after oil palm. Coffee processing produced jobs as well as foreign currency earnings. From 2012 to 2017, coffee accounted for 27% of total agricultural exports and 6% of the country's gross domestic product (GDP). It helped PNG's economy in a variety of ways, including transportation, construction, manufacturing, retail and wholesale, insurance, and banking. Arabica is a coffee species that is widely grown in PNG, mostly in the Highlands between 700 and 2,050 meters above sea level. Robusta is grown in coastal areas of PNG at elevations of up to 550 meters above sea level. PNG produces high-quality, fine-flavour Arabica coffee, which is highly sought after by coffee drinkers. Coffee production in PNG, on the other hand, seems to be decreasing. Between 1998 and 2018, according to a survey by AECOM (2018) on PNG coffee market research, exports fell to 934 60kg bags. In the foreign market, the price of coffee has also been falling over time. The implication is that, since the two components of coffee revenue (output and price) to producers are decreasing, the revenue would decline over time, resulting in significant consequences for the producers and the PNG economy. Results of study In Papua New Guinea, the annual area of coffee fields cultivated ranges from 41,000 hectares in 2002 to 87,000 hectares in 1999. In PNG, the area of coffee fields cultivated decreased by 33% from 81,000 hectares in 1998 to 54,000 hectares in 2018. When compared to the smallest area of coffee field harvest among the top five nations, PNG's largest harvested area (87,000 hectares) is 71% less than the smallest harvested area (220,000 hectares). The amount of coffee beans processed has decreased by 28% from 81,000 tonnes in 1998 to 58,000 tonnes in 2018. It's worth noting that there was no data available for 2008. Over the course of the research, PNG's annual coffee production was lower than that of the top five coffee-producing countries. Vietnam had the most coffee harvested per hectare of the top five coffee-producing countries. It jumped from 1,875 kg/ha in 1998 to 2,612 kg/ha in 2018, a 39 percent rise. Brazil harvested 816 kilograms per hectare in 1998 and 1,906 kilograms per hectare in 2018, a 134 per cent rise. Findings from a literature review on key challenges to coffee production and processing in Papua New Guinea The following are some of the obstacles to coffee production and processing in PNG: INADEQUATE access to basic infrastructure and facilities – Smallholder farmers, especially those in rural areas, struggle to find facilities for coffee milling and storage. There were no decent roads for transporting agricultural supplies and goods to and from their coffee fields. FARM management activities – Most coffee trees have reached the end of their economic sustainable life cycle, resulting in a decrease in crop yield. Producers postpone or fail to perform required coffee husbandry activities such as daily pruning and the planting of shade trees. REDUCED YIELD AND Uneven PRODUCT QUALITY – The quality of coffee produced in PNG is deteriorating. INADEQUATE extension services – Coffee farmers, especially smallholders, need education on modern coffee production methods. They, on the other hand, often find it impossible to obtain services from extension agents. TECHNOLOGY – Modern technology can help coffee farmers increase productivity and increase the appeal of their commodity. Coffee farmers in PNG, on the other hand, often lack modern technologies, which limits their ability to reach their full potential in the coffee industry. CHANGE IN CROPPING Trend – Due to a drop in coffee market prices or problems with access to coffee processing facilities, some coffee farmers turn all or part of their coffee fields to other more cost-effective crops. The turn to other crops may also be due to labour shortages for essential farm tasks including pruning coffee trees and picking coffee beans. PESTS and diseases – Other threats threatening coffee production include the coffee berry borer, coffee leaf rust, coffee green scale, and pink disease (DAL, 2020). UNFAVORABLE MARKET PRICES – The price paid to smallholder coffee farmers is often less than the rate paid to exporters. Smallholders are also discouraged from paying attention to required farm activities, which has an effect on coffee productivity. FINANCIAL ACCESS – Certain coffee farmers choose to grow their farm or buy coffee processing equipment. They, on the other hand, frequently have difficulty obtaining loans from commercial banks. ACCESS TO LAND FOR COMMERCIAL COFFEE PRODUCTION – A wide area of land is required for commercial coffee production to be productive, particularly in terms of economies of scale. Broad tracts of land with proper names, on the other hand, are often difficult to navigate. This is due to the fact that the state-owned property with proper titles is almost depleted. Communal-owned property, which accounts for nearly 97 per cent of total land in PNG, lacks proper titles; and SECURITY issues – Theft of coffee goods, particularly in rural areas, is a major concern for farmers and raises production costs and losses. Discussion The results of this study revealed that PNG has the potential to become one of the world's leading coffee producers. The country's climatic and environmental conditions are ideal for growing a variety of coffee varieties, giving it an advantage over some of the world's top coffee producers. This may explain why, according to the study, PNG had a higher average coffee yield per hectare than all of the top five coffee-producing countries except Vietnam. However, the region of cultivated coffee fields and the quantity of coffee produced by PNG have remained lower than those of the other top five coffee-producing countries studied in this report. The PPAP, which is being implemented by the government with the support of the World Bank, has the ability to increase PNG's coffee production and make the country more competitive in the coffee industry. However, the PPAP benefits only certain coffee farmers, making it impossible to achieve the desired rise in coffee demand. More robust and reliable monitoring and evaluation processes are needed for the PPAP to contribute more meaningfully to the coffee market. The project should place a greater emphasis on coffee tree replanting and plantation regeneration. To increase overall coffee production in PNG, all coffee growers should have access to the PPAP (for example, through an all inclusion program).
PNG Business News - March 29, 2021
Coffee Demand Has Declined, According to a Survey
According to estimates from a survey, coffee production in the country has been decreasing for the past ten years. “From 1998 to 2018, the coffee harvest area and quantity of coffee produced in PNG decreased by 33 per cent and 28 per cent respectively,” a National Research Institute (NRI) report stated. The downturn was triggered by the problems that coffee growers face, such as a shortage of processing facilities, insufficient extension resources, and restricted access to finance. The problems could be resolved by the strategies suggested by NRI deputy director for research Prof Euegene Ezebilo and Prof Carolyn Afolami of the Federal University of Agriculture Abeokuta, based on the fact that “PNG has ideal environmental and climatic conditions for growing high-quality coffee.” They concluded in their paper, Strategies for improving coffee production and processing in PNG: Lessons from the top five coffee-producing countries, that the government's "political will" was critical in moving the coffee industry forward. “And this can be done by promoting effective extension services and training coffee growers on modern systems and innovations in producing coffee; provide funds for research and farm management practices; and, support farmers through loans facility at low-interest rates,” NRI said in a statement. “Policymakers, planners and agricultural managers are urged to take heed of the findings to make informed decisions on boosting the yield and quality of this commodity.”
PNG Business News - June 05, 2023
PNG PM Marape Participates in PIF Leaders Breakfast Caucas
Photo: PNG PM Marape Participates in PIF Leaders Breakfast Caucas Prior to the Korean-Pacific Islands Leaders (Kor-Pic) Meeting, Papua New Guinea Prime Minister Marape joined other PIC Leaders for a breakfast caucus Chaired by Cook Islands Prime Minister and current Pacific Islands Forum Chair Mark Brown, to discuss the agenda and a common position on shared development issues. Prime Minister Marape said climate variation, being the perennial issue including sourcing appropriate development assistance from the Korean Government was high on the agenda. He said the encouragement during the caucus was for all PIC Leaders to discuss their developmental challenges and put forward their ideas on how Korean Development assistance could complement the 2050 Blue Pacific Strategy. Following this caucus, Prime Minister Marape, met with Australian Deputy Prime Minister Richard Marles. Their discussions were centered around progress of the proposed Bilateral Security Treaty (BST), the recently concluded Defense Cooperation Agreement with the US, Visa issues and the PNG NRL Bid. On the BST, Prime Minister Marape mentioned that it was work in progress and required the PNG side to consult our domestic processes and sovereign laws in relation to certain wordings and provisions. He also conveyed his apologies to Prime Minister Anthony Albanese for the delay in formalising this proposed Treaty with Australia. For the DCA with the US, Prime Minister Marape informed that it was centered around improving the PNGDF's capabilities and interoperability including protecting our frontiers and sovereignty. He said it was non-discriminatory and PNG was open to entering into similar arrangements with its bilateral partners. “In fact, the DCA would also complement domestic law enforcement,” Prime Minister Marape said. “The Ship Rider Agreement on the other hand was also vital in combating illegal fishing and transnational crimes.” For Visa issues, Deputy Prime Minister Marles informed that the current Australian Government was fully aware of the situation and following the Ministerial Forum in February this year in Canberra, had established a Joint Ministerial Team to work on bringing the Australian visa processing facility back on shore to PNG. Prime Minister Marape in his response said that all processes from both sides had to be attended to in order for smooth facilitation and for citizens and businesses to continue without much hindrance now and heading into 2050 when PNG celebrates 50 years of nationhood. On Papua New Guinea’s NRL Bid, Prime Minister Marape explained that PNG was still very keen as rugby league was a major unifying factor, bringing our 800 tribes together as one people. In closing Prime Minister Marape assured Deputy Prime Minister Marles that PNG in no way would compromise its excellent existing bilateral relations with Australia and further stressed that PNG was capable of managing its sovereign affairs on its terms, systems and processes.
PNG Business News - June 05, 2023
ADB Helps Launch Vocational Education Project in PNG
The Asian Development Bank (ADB) and the governments of Australia and Papua New Guinea (PNG) today launched a cofinanced project to improve the country’s technical and vocational education and training (TVET) program. PNG's Deputy Prime Minister John Rosso delivered a keynote address at the launch event at Port Moresby Technical College. PNG’s Minister of Higher Education, Research, Science and Technology, and Sports Don Polye, ADB Country Director for Papua New Guinea David Hill, and Australian High Commission Minister Counsellor Paul Lehmann all spoke at the event. The Improved Technical and Vocational Education and Training for Employment Project financed by ADB and the governments of Australia and PNG will strengthen the country’s TVET program and help prepare students to be more competitive and responsive to employment and industry demands. “We hope this project will become a model for all vocational education and skills training in TVET colleges in the country,” said Mr. Rosso. “The beneficiaries of this project—young, skilled workers, including women and men—represent PNG’s future, and through this project, the future of vocational education in PNG looks bright.” This project aims to boost the numbers of skilled workers in the construction and agriculture sectors where demand is high. “We will work with our partners to help advance reforms in the vocational education and skills training space in PNG,” said Mr.Hill. “These sought-after skills in priority sectors will help grow PNG’s economy.” The TVET sector of PNG’s education system comprises public, religious, or private institutions, including technical and business colleges offering postsecondary courses and vocational training. “The Australian government is pleased to be supporting the Government of Papua New Guinea to achieve its reform goals in technical and vocational education and training to increase the number and quality of skilled workers,” said Australian High Commission Minister Counsellor Paul Lehmann. “My vision for the TVET for Employment Project is that it will perform as an innovation and technology business incubator across PNG,” said Mr. Polye. “The project is the embodiment of a new approach—building a culture of quality education and innovation in a renewed and revitalized TVET sector.” The Improved Technical and Vocational Education and Training for Employment Project is funded through a $50 million concessional loan from ADB and a $10.6 million grant from Australia. The Government of PNG is also contributing $5.7 million. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
PNG Business News - June 05, 2023
PNG Forges an Innovation-fueled Partnership with South Korea in Digital Transformation
Papua New Guinea was amongst seven other Pacific Island countries to sign a partnership statement of intent with the Republic of Korea to further cooperation and partnership in digital transformation. Information and Communications Technology Minister Timothy Masiu, who also was appointed co- chair of the just concluded Korea -Pacific Islands Digital Ministerial Conference in Seoul, South Korea, signed the statement together with the meeting chairman Korean Minister for Science and ICT Dr Lee Jong-Ho. The others who signed the partnership intent are Tonga, Nauru, Samoa, Palau, Cook Islands and Kiribati. Australia and the World Bank also attended the meeting as supporting partners. The Statement of Intent states; The partnership recognize digitalization has transformed not only daily lives but also shapes innovation in all sectors including politics, economy, society, culture and environment. Recognize and note that digital technology offers great potential to address various social economic challenges that come with rapid transformation of society. Agree on continued partnership in digital transformation inclusive of sustainable development will be the key to future prosperity of the people of Korea and the pacific. Agree on sharing digital vision of policies will pave way for strong partnership to digital co-prosperity. Mr Masiu expressed deep satisfaction that Korea , the global leading innovation country, has agreed to partner with Pacific countries including Papua New Guinea in digital transformation that will greatly enhance communication in a vast area like the Pacific and more so, strengthen supporting technology to better access to health, education and business. He told the conference that Papua New Guinea has begun the digital transformation with Parliament passing the Digital Government Act 2022 and relevant policies, and welcomed the partnership with the Republic of Korea, which he says, will go a long way in progressing the digital transformation agenda for PNG and the region. Mr Masiu had bilateral meeting with his South Korean counterpart, further seeking a stronger country to country relations in digital transformation and support to the National Broadcasting Corporation proposing a partnership between the NBC and the Korean Broadcasting Services. The Minister has formally invited the Korean Minister for Science and ICT to visit Papua New Guinea for the Pacific ICT meeting in August 2023 or to accompany the South Korean President who has been invited by Prime Minister James Marape to visit PNG. Mr Marape was in Seoul also this week for the Korea- Pacific Islands Forum Leaders meeting. Minister Dr Lee Jong-Ho acknowledges the leadership of Papua New Guinea in digital transformation and reaffirmed its support to PNG and the other Pacific Island countries.