The Papua New Guinea Resources Week allowed presenters to share information, network opportunities, and PNG’s national content.
East Sepik Governor Allan Bird took the opportunity to articulate a bold vision for the future of his province, highlighting significant strides in agriculture and community empowerment.
In his presentation during the Resource Week Day 3 themed “Impact in Agriculture,” Bird underscored the challenges faced and the innovative solutions implemented to drive sustainable development in East Sepik.
Agricultural Transformation
Governor Bird emphasized the pivotal role of agriculture in East Sepik's economic scope, particularly focusing on cocoa production.
He revealed ambitious plans to equip each of the province's estimated 128,000 cocoa farmers with the skills and resources needed to increase productivity.
Through the establishment of over 600 village nurseries, Bird's administration has empowered local farmers to manage their cocoa plots independently, fostering self-sufficiency and boosting production capacity.
“We tried to bring all of that together to develop an economic base. Moving forward obviously we picked cocoa, we tried to go to every single village and I think as of today we've established more than 600 village nurseries. So essentially every village has its own cocoa nursery,” Gov. Bird said.
“Then we spent money training our people on what to do with the nursery. So how to select their clones, how to produce a new seedling, essentially trying to upgrade them from what they were doing before in terms of their skills so that they can become self-sustaining.
“That was the whole idea, to give them the skills they need. In 2017, the entire province had about 12 people. We had about 3 nurseries in the whole province. Today we have more than 600 nurseries. We have close to 50,000 local farmers. We have people who can produce their own clones.
“So essentially they can make their own decisions as to what they want to do with their land, with their resources, their labor, how to apply it. And I think we've been pretty successful at that. We were amongst the top five cocoa producers in the country. Our target is to try to get each one of our 128,000 cocoa farmers to produce one pound of cocoa. That's our challenge. That's our goal.”
"Today, we've already produced one and a half million seedlings this year alone," Bird announced, illustrating the province's rapid agricultural expansion.
By investing in training programs and infrastructure, East Sepik aims to lead PNG in cocoa production, a significant achievement for a region once struggling with agricultural viability, the governor said.
Community Empowerment and Infrastructure Development
Beyond agriculture, Gov. Bird highlighted initiatives aimed at enhancing community resilience and infrastructure.
He recounted success stories from villages like Changriwa in East Sepik Province, where every household now owns a cocoa plot, thanks to collaborative efforts between the provincial government and local communities.
Solar power initiatives have also been pivotal, providing sustainable energy solutions to remote areas previously lacking in basic services.
"We've managed to create many villages where self-sufficiency is the norm," Gov. Bird noted, pointing out the transformative impact of these initiatives on local livelihoods.
From improved housing to enhanced access to essential services, communities across East Sepik are experiencing tangible improvements in quality of life.
Bird acknowledged persistent challenges, including logistical hurdles and financial constraints. He stressed the importance of continued support from national and international partners to sustain momentum and expand initiatives across the province.
"We need bigger ships to bring stock into Wewak," Bird remarked, noting they are working towards solutions to match the growing demands of East Sepik's economy while preserving its environment.
Governor Bird expressed gratitude for the growing support from both public and governmental organisations. He credited increased public engagement and collaboration with overcoming initial resistance to reform initiatives, emphasizing the importance of transparent governance and community involvement in decision-making processes.
"In the last two years, public support has been crucial," Bird stated, further assuring his commitment to empowering local communities and revitalizing agriculture.
Prime Minister Hon. James Marape recently launched the National Agriculture Sector Plan (NASP) 2024 – 2033.
In so doing, PM Marape tasked the Agriculture Sector to utilize the Plan to con-tribute K30 billion to the economy by 2033 and also contribute to the 1 million job creation target by the same year.
In a ceremony at Sir John Guise Indoor Complex attended by members of the Agriculture sector from both the Public Service and business community, Prime Minister Marape stood at the podium and watched as children – all dressed in traditional attire marking the 21 provinces and the special region of Bougainville – walked up to him carrying a sample of an agriculture commodity with the printed NASP and the National Agriculture & Livestock Implementation Plan 2024 – 2033.
The children’s activity was a symbolic representation of the inclusivity and hope imbedded in the plan to drive agriculture across the country and economically empower rural Papua New Guineans in agribusiness and agriculture-related ventures.
Prime Minister Marape said, “Agriculture is the core policy of my party, Pangu. It is a sleeping economic giant that has my government’s undivided support to unlock this real treasure of the county.
“When I advocated for Papua New Guinea to become the Richest Black Christian, I knew we have all the fundamentals needed to make it happen.
“We have land which we still own; we can easily make the switch from subsistence to commercial agriculture; and the government is there to work with the Private Sector to find markets for our people. This plan captures my government’s vision for an agriculture-based economy.
“I am delighted that 85 percent of the population will gain more benefits from NASP investments. It has created a platform for the local, district, provincial and national governments, private investors and foreign direct investors to venture into strategic partnership with landowners and other stakeholders for development of large-scale commercial agriculture and downstream processing space.
“This ensures active participation in the economic development by everyone where no one is left behind, from where we will secure financial, nutritional and food security for PNG,” said Prime Minister Marape.
The new NASP replaces the old Agriculture Development Plan 2007 – 2016, which expired seven years ago and was needing to be a lot more developed to capture the current government’s focus.
The Plan is aligned to the strategic goals of Vision 2050, PNG DSP 2010-2030 and the latest Medium Term Development Plan IV 2023-27, which prioritizes Agriculture Commercialization and Livestock Development as the cornerstone for sustainable socio-economic development of the country.
The targets to be delivered include Improved Food Supply/Security, increased income-earning opportunities for people, import replacement, improvement in the performance of the Agriculture Sector, creation of employment opportunities for all, and improvement in the quality of life.
NASP’s development came from a series of consultative workshops carried out in each of the four regions as well as meetings with heads of the commodity boards and development partners.
Papua New Guinea is witnessing a significant transformation in its agribusiness sector, driven by soaring global demand for its agricultural products and strategic initiatives to boost local production. Recent developments highlight the enormous potential for agribusiness investment in Papua New Guinea, particularly in cocoa and corn industries.
Papua New Guinea is set to record its highest-ever annual cash-crop export revenue in 2024, primarily driven by surging global cocoa prices. The country’s cocoa industry has experienced a remarkable boost, underscoring the significant role agriculture plays in Papua New Guinea’s economy. The soaring demand for cocoa has positioned it as a vital export commodity, promising further growth and opportunities for farmers and investors alike. The potential for scaling up cocoa production to meet global demands offers a lucrative avenue for agribusiness investments.
In addition to cocoa, Goodman Fielder International (GFI) has called on the Papua New Guinea government to establish a commercial corn industry. This initiative aims to reduce the country’s reliance on imported wheat for animal feed and boost local agricultural production. GFI’s Managing Director, Sun Xing Tao, emphasized the potential benefits of a domestic corn industry, which could provide substantial support to local farmers and contribute to Papua New Guinea’s economic sustainability. This call aligns with Papua New Guinea’s broader agricultural strategy to diversify and strengthen its agribusiness sector, ensuring food security and economic resilience.
The anticipated record-breaking cash-crop export revenue in 2024, bolstered by the cocoa boom, highlights the broader potential for agribusiness in Papua New Guinea. The country’s diverse agricultural landscape, favourable climate, and growing expertise in cash-crop production make it an attractive destination for agribusiness investments. With strategic support from the government and international partnerships, Papua New Guinea’s agribusiness sector is poised for significant expansion and development.
Investors looking to capitalise on Papua New Guinea’s agribusiness potential will find numerous opportunities in both the cocoa and corn industries. The growing global demand for cocoa presents a lucrative market for expanding production and export capabilities. Meanwhile, establishing a commercial corn industry can enhance food security, reduce import costs, and support local farmers. The government’s commitment to fostering a sustainable agricultural sector, coupled with initiatives like the Green Finance Centre, further strengthens the investment landscape in Papua New Guinea.
Papua New Guinea’s agribusiness sector is on the cusp of a transformative era, driven by record cash-crop revenues and strategic initiatives to bolster local production. The booming cocoa industry and the potential for a commercial corn sector present compelling opportunities for investors. With the right investments and support, Papua New Guinea can harness its agricultural potential to drive economic growth and sustainability, making it an attractive destination for agribusiness ventures.
Prime Minister Hon. James Marape and Government MPs marked the 2024 World Environment Day by planting trees along Independence Boulevard in Port Moresby recently before heading to Parliament. The event was organised by the National Capital District Commission and Governor Hon. Powes Parkop.
In his address, Prime Minister Marape urged all Papua New Guineans to plant a tree a year and logging companies to plant four trees for every tree they chop down.
“In the midst of the current political landscape, we, as a government, have gathered here to plant a tree in honour of this significant day,” stated Prime Minister Marape.
“Trees produce oxygen. Oxygen gives life.
“If God was to charge us for the oxygen we breathe, we would neither have the money to pay for this, nor would we survive.
“I want to encourage every Papua New Guinean right across the country to plant one tree a year.
“When you cut down a tree, are you planting a new tree? Where were you when the tree was planted?
“We must reflect on this on World Environment Day today and going forward.
“We must be a nation that plants trees.
“To our logging companies: Law requires that when you cut down one tree, you plant four.
“I hope we are monitoring this as the Executive Government, through the Forests Department, enforced the policy that if you cut down one tree, you plant four trees.”
Highlighting the crucial role of trees in sustaining human life by providing essential oxygen, Prime Minister Marape emphasised the importance of initiatives like the tree-planting program.
The programme aims to plant one million trees across Port Moresby, and he encouraged all citizens to join in this green endeavor.
Prime Minister Marape commended this year’s World Environment Day theme: ‘Land Restoration, Desertification, and Drought Resilience – Our Land, Our Future, We are Generation Restoration’.
Prime Minister Hon. James Marape has announced that the forestry sector has enacted two new laws to ensure the country gets maximum value from its forestry resources.
The laws, relating to the State Marketing Agency (SMA) and Purchase Option (PO), are among a number of initiatives that the PNG National Forestry Authority has undertaken during the last five years under the Marape Government.
These laws aim to ensure that the resource owners – the people who own the land on which the trees are being harvested for export – receive greater benefits from their resources while contributing more to the country’s revenue, particularly through downstream processing.
Prime Minister Marape highlighted these laws in a five-year anniversary report of his government presented to Parliament last week.
“In forestry, we have enacted laws that will establish the State Marketing Agency (SMA) and Purchase Option (PO) to buy logs from permitted operators. This cuts down on other unfair trade
practices, especially transfer pricing and tax evasion. Downstream processing is the end game out of all of this,” he said in the report.
Despite the forestry industry making an important contribution to PNG’s economy for many years, it has faced numerous criticisms, prompting the industry to take significant steps to improve its image for the benefit of the country.
Currently, the vast majority of timber produced in the country and exported is in the form of raw logs – a trend the Marape Government seeks to change by promoting downstream processing, thereby exporting finished products that fetch higher prices than raw materials, ultimately contributing to the country's overall economic improvement.
The Prime Minister acknowledged the economic challenges facing the people and assured them that his government is making every effort to turn the tide, including enacting laws in the forestry sector to ensure progress and positive changes in the economy, though major improvements will take time.
“What we have done is foundational. Its impact will come given time. We’re dealing with issues in totality, not haphazardly, so as to achieve one outcome,” Prime Minister Marape said.
“We’re laying down strong building blocks under difficult circumstances. We inherited an economy that was managed poorly.”
AgResearch is keen and ready to partner the National Agriculture Research Institute (NARI) of Papua New Guinea (PNG) to help develop the agriculture sector of PNG. AgResearch is one the seven Crown Research Institutes in New Zealand responsible for delivering innovative science and research outcomes specifically for the agricultural sector. In their meeting with the Minister for International Trade and Investment, Hon. Richard Maru in Hamilton, New Zealand, AgResearch said they were happy to partner NARI to provide research training and internships for Papua New Guinea agriculture scientists and graduates.
Minister Maru said: “AgResearch has been providing training internships routinely through similar arrangements with their partners and they are keen to do the same with PNG through a partnership with NARI. They are happy to work with the PNG Government and NARI to formalize this partnership.”
Minister Maru further stated: “We want to build our dairy industry to become a dairy producing nation, but we have no expertise. New Zealand has all the expertise and experience and are renowned globally in this space and that is why we want our agriculture scientists and graduates to come to AgResearch to be trained so they can learn from them and return to PNG to build our own industry.”
“This will be the start of our journey to building a serious agriculture relationship with New Zealand,” Minister Maru added.
The recent signing of the Protocol on coffee exports to China during the official visit of His Excellency Wang Yi, the Minister for Foreign Affairs for China, marks a significant milestone for Papua New Guinea's coffee industry and agriculture sector.
The momentous occasion on the 21st of April signifies an historic moment in the relationship between PNG and the People's Republic of China, as the phytosanitary protocols were signed to open the Chinese market to PNG's unroasted coffee beans.
It reflects years of negotiation efforts by PNG Prime Minister Hon. James Marape and Minister for Foreign Affairs, Hon. Justin Tkatchencko, aimed at bridging the gap between the two nations' systems.
Traditionally, PNG's coffee has been primarily traded with Western societies, with Asia serving as the shipment port.
However, with the efforts from Prime Minister Marape to promote and develop the agriculture sector, the Memorandum of Understanding (MOU) with China heralds a promising future of trade and economic partnership between the two nations.
PNG boasts a global reputation for its distinct coffee, with exports reaching over 34 countries worldwide.
Despite producing less than 1 million green bean bags annually, PNG’s presence in various markets underscores the unique position its coffee holds among enthusiasts globally.
PNG Minister for Coffee, Hon. William Bando, CPA, LM, MP, in a recent statement, assured his Ministry’s commitment in supporting the coffee industry.
“My Ministry will work to enhance the entire coffee value chain, from farm to cup, by investing in infrastructure, technology, and capacity-building initiatives that improve productivity, quality, and market access for coffee farmers,” Hon. Bando said.
From 2021 to 2023, PNG has witnessed remarkable growth in its coffee export sector, particularly in exporting to China. The cumulative value of coffee exported saw over 50,651 bags (3,039 tonnes) shipped to China, bringing in an impressive K42,104,493 -- reflecting the dedication of local farmers and exporters.
“This achievement is a testament to the hard work of our local farmers and exporters, where 58% out of the 32 registered exporters have ventured into the Chinese market, diversifying and expanding their horizons,” Minister Bando said.
The surge in exports to China, reaching 35,020 bags (2,101 tonnes) in 2023 alone, demonstrates the increasing demand for PNG coffee in China, attributed to the unique taste and high quality of PNG coffee, making it a preferred choice among the Chinese.
Minister Bando confirmed that the figures presented relates to PNG coffee entering China, not directly but through different ports such as Hong Kong, Malaysia, or Singapore, as PNG had no protocols for direct entry of coffee. It will be another chapter when coffee can be now shipped direct to China.
He stated the challenges the PNG coffee industry faces, adding: “The signing opens up market for our products, but it is a challenge to our coffee industry to produce more as direct exports will obviously mean more direct sourcing of PNG Coffee.”
“Further, we can expand our roast and ground coffee trade with the direct flights between PNG and China that is expected to be three flights weekly. We need to put more roast beans and ground coffee on these flights to China apart from the unroasted or green bean exports on ships.”
He said efforts will be directed towards enhancing the entire coffee value chain, from farm to cup, through investment in infrastructure, technology, and capacity-building initiatives. Research and innovation will play a crucial role in driving growth and competitiveness in the coffee sector, the minister added.
PNG also seeks to explore trading opportunities with China for other commodities such as cocoa, rubber, coconut, copra, tea, and oil palm, emphasizing the commitment to agricultural development.
However, the minister said the success of this agreement hinges on the continued dedication of farmers, growers, and industry stakeholders to increase production and productivity while maintaining the unique taste and preferences that distinguish Papua New Guinea coffee on the global stage.
Hon. Bando added: “My appeal to all Coffee Industry Corporation Board and staff and Agriculture Officers throughout PNG to get moving on the ground to motivate, encourage and point our producers to getting our hands dirty and this will create employment and income earning opportunities and in moving our industry forward as well as our economy. We must produce more coffee and process at affordable costs for our own consumption and to sell to the world that unique PNG brand.”
In a significant move aimed at uplifting rural economies, the Coffee Industry Corporation Limited’s (CIC’s) Strategic Business Plan for 2020-2024 aims to hike production of coffee by 10 percent and improve the quality of coffee beans by 20 percent.
The CIC SBP focuses on enhancing the livelihoods of coffee farmers, boosting their income, and raising their production, aligning with PNG’s Vision 2050, ‘Take Back the Economy’, with special focus on agriculture.
This initiative seeks to empower coffee growers, particularly in rural PNG areas like Wabag District in Enga Province, to enhance their production and ultimately improve their living standards sustainably.
Established in 2017, Wabag District Coffee Grower Cooperative Society (WDCGCS) was registered into SME business through coffee (parchment) purchase and marketing. It sought to help rural farmers and coffee growers to sell their produce at convenient, affordable prices at the community-village level.
WDCGCS supports raising coffee production to generate higher cash incomes into the rural population at the community household level.
Initiating Progress
The WDCGCS has taken proactive measures to foster coffee cultivation in the region. It includes the establishment of a semi-improved coffee nursery dedicated to raising quality coffee seedlings.
These seedlings are then distributed among coffee growers across Wabag District, with the aim of supporting planting efforts and boosting coffee production over the next 3-5 years.
During an interview with PNG Business News, WDCGCS Chairman Mr Kandes Nyia shared the cooperative’s aim to promote coffee, provide quality coffee using modern machines, and secure quality markets for Wabag District coffee growers.
“By this year, we aim to market quality coffee from Wabag District. More coffee planted means more income for our people,” he added.
“Coffee will help the people in Wabag District raise their standard of living, by providing an income and at the same time providing youth empowerment opportunities.”
He emphasized that coffee also plays a role in that its trees prevent soil erosion and improve soil fertility.
“People must be motivated to work the land providing garden tools, equipment and agricultural equipment to work,” Mr Nyia added.
He said such initiatives must get support from agencies, business sectors, and the government, which will help communities develop and participate in projects for the development of rural areas in PNG.
Proposed Projects
To further amplify their impact, WDCGCS is proposing two key project components:
Community Support and Funding
The initial stages of these projects have been made possible through support and funding from various sources, including the Wabag District Services Improvement Program (DSIP) funds, which underlines a collective commitment to realizing long-term development goals and fosters sustainable livelihoods within the community.
WDCGCS act as the coffee buying and marketing agent, and its service providers as indirect beneficiaries in the value chain. The project is currently progressing to grow another 50,000 coffee seedlings, which is the required package through its DSIP funding volume. This would supply another 200 growers into the next phase of planting, the cooperative said.
The project has established a foundation to buy more coffee seedlings and a technical framework to support coffee production and management, and to promote high-quality and quantity coffee production for high incomes in both the urban and rural household population.
Vision and Impact
Since its establishment in 2017, WDCGCS has been dedicated to promoting coffee development in Wabag District. Its objectives encompass not only raising coffee production but also promoting quality cultivation practices, engaging unemployed youth in agriculture, and providing a strong marketing avenue for local coffee beans.
Empowering Communities
Operating across 20 Local Level Government (LLG) areas within Wabag District, WDCGCS actively involves over 200 registered farmers, including 150 males and 50 females, with a special focus on engaging youth in coffee cultivation.
By strategically establishing its headquarters in Birip village, WDCGCS has positioned itself as a pivotal player in the region's coffee industry, catering to the needs of both growers and consumers alike.
Addressing Challenges
Despite the region's rich coffee-growing potential, challenges such as inadequate market infrastructure and safety concerns have persisted. The absence of a modern market facility has not only hindered economic growth but also posed risks to farmers' safety and well-being.
Through the proposed initiatives, WDCGCS aims to mitigate these challenges by establishing modern market facilities equipped with essential amenities and safety measures.
Looking Ahead:
As WDCGCS continues to expand its operations, its focus remains steadfast on enhancing coffee production, promoting sustainable rural development, and improving the overall quality of life for coffee growers in Wabag District.
With ongoing support from government entities and funding agencies, the cooperative is confident with realizing its vision of establishing Wabag coffee as a premium brand on the global market.
Appreciate the process
The ‘coffee seed to coffee in the cup’ mantra is a long process many often do not appreciate and consider. In PNG, the coffee process is usually done manually and often takes 3-4 years for the coffee to reach the target market.
The manual process takes longer and includes planting seedlings, to harvesting the cherries either strip picked or selectively picked, and the method of processing the cherries to prevent fruit from being spoilt is done either by dry method or wet method.
The coffee beans are then dried and milled and brought to the markets for sale. Exporting, testing, roasting the coffee, and grinding or brewing coffee are the final stages for consumption.
PNG’s coffee industry is gaining recognition for its distinctive and unique flavors from the coffee beans grown in the Highlands region of PNG. Indeed, the manual process often used in PNG reflects the time, effort, and patience in bringing out quality in the coffee beans. Thus WDCGCS’s aim is to export their own coffee around the world.
Prime Minister and Treasurer Hon. James Marape today emphasised the substantial resources his government has allocated to the agriculture sector, surpassing any past government’s efforts. Speaking at the closing ceremony of the two-day Department of Agriculture and Subsector Agencies Meeting in Port Moresby, the Prime Minister stressed the importance of delivering on the Medium-Term Development Plan 2023-2027.
“No government in the past has allocated more to agriculture than my government has over the last three years,” Prime Minister Marape said.
“No Government in the past has allocated more to SMEs than my government has over the last three to four years.
“No government has focused more on agriculture than my government over the last three or four years.”
Present at the meeting were Agriculture Minister Hon. John Boito, Oil Palm Minister Hon. Francis Maneke, Agriculture Secretary Dr. Sergie Bang, as well as heads and representatives of agriculture commodity boards.
Prime Minister Marape expressed his desire for the agriculture sector to move beyond discussions to achieving tangible results.
“All of you know my line of thoughts and my conversations in agriculture which are not for me to repeat all the time,” he said.
“We just have to get out and do work now.
“I think we have had so many sessions like this.
“All of us are not new to this conversation.
“For me, going on five years now, I do not want continuous talking.
“Let’s get out there and achieve outcomes.
“May this be the last talk fest.
“The next time, I want results posted up on the board,” Prime Minister Marape said, specifically referring to export figures.
In an empowering move for local agriculture and economic growth, Prime Minister and Treasurer Hon. James Marape has announced a significant K5 million funding to the Markham District Development Authority (DDA) in Morobe. This substantial investment is targeted at the development of the cocoa industry among other economic ventures, aligning with the surge in global cocoa prices to unprecedented levels.
The announcement was made at the Mutzing district headquarters on Friday, March 29, 2024, coinciding with the inauguration of the Markham District Administration complex and the launch of the Markham District Development Plan 2023-2027.
Addressing a large gathering at Mutzing Station, Prime Minister Marape emphasised the economic potential of local agriculture: “There is money in the villages,” he stated.
Highlighting the lucrative opportunity presented by the current cocoa market, he said, “Cocoa is now paying K1,300 per bag. God has given you land to work and make money. There is money in cocoa, corn, taro, coffee, oil palm. If you want the Government to bring in development, you too must work for your country.”
Prime Minister Marape laid out a vision for grassroots economic empowerment, suggesting that if 5,000 young men from Markham engage in agriculture, earning K10,000 each annually, it could inject K50 million into the district’s economy. He underscored the Pangu Pati Government’s commitment to boost agricultural productivity: “The Pangu Pati Government, from 2019-2024, wants you to go to your gardens, make money, and we will put money into districts that will link you to economic productivity.”
The Prime Minister encouraged active participation in agriculture: “Money is there, you are not poor, my people. Just because you are lazy, you remain poor, come back home as there is money in the land. You live along the Highlands Highway so you have no excuse to be poor.”
Prime Minister Marape, noted the cocoa success stories from the Sepik provinces, Bougainville, and East New Britain, where locals have significantly benefited from high crop prices.
Prime Minister Hon. James Marape has reaffirmed the government’s dedication to fuelling the growth of the oil palm industry in Papua New Guinea. The sector, which stands as the country’s leading agricultural export, generated over K2.8 billion in exports in 2022, marking a pivotal contribution to the national economy.
Prime Minister Marape highlighted the government’s support through the allocation of over K3.5 million to the National Oil Palm Intervention Programme (NOPIP), a strategic initiative overseen by the Oil Palm Industry Corporation (OPIC), since last year. “This funding is directed towards bolstering the production capabilities of the industry by addressing one of its critical challenges – the ageing of palm trees, which has been a significant factor in declining production rates,” he said.
“Under the stewardship of Oil Palm Minister Hon. Francis Maneke, the programme has seen substantial progress. Minister Maneke has been proactive, traversing the nation to ensure the effective distribution of funds to millers. This financial support facilitates the supply of quality seedlings to smallholder growers, aiming to rejuvenate their fields with new, high-yielding palm trees.”
The Prime Minister expressed his gratitude towards Minister Maneke, the major milling companies, and OPIC for their unwavering support of this vital initiative.
Last year’s intervention was K576,000 to New Britain Palm Oil Ltd (NBPOL) to distribute 48, 000 seedlings (K18 per seedling) to cover 400-hectares at Hoskins; and K288,000 to Hargy Oil Palm for 24,000 seedlings to replant 200ha at Bialla.
This year, more allocations have been made, including a notable K540,000 to NBPOL for the distribution of 35,000 seedlings, aimed at revitalising 250ha in Hoskins; K216,000 to Hargy Oil Palms for 14,000 seedlings to rejuvenate 100ha in Bialla; and another round of K540,000 to NBPOL for the same purpose in Oro.
Further commitments were announced, with plans to allocate K216,000 to NBPOL for 100ha in Milne Bay, and K324,000 for 21,000 seedlings to cover 150ha in New Ireland. These efforts underscore the government’s concern over the ageing palm trees and its commitment to reviving the industry amid economic challenges and rising living costs.
Prime Minister Marape emphasised the importance of providing high-quality seedlings to support local growers, ensuring the sustainability of the oil palm crop across the nation. “The initiative not only aims to boost production but also to provide substantial support to smallholder growers throughout Papua New Guinea, marking a commendable step towards enhancing the livelihoods of those dependent on agriculture,” he said.
“This initiative to support replanting is commendable and will greatly benefit smallholders.
“This signals a bright future for the oil palm industry and its significant contribution to the nation’s economic resilience.”
Exciting times are ahead for the coffee industry in Central Province with the signing of a Memorandum of Agreement (MoA) between Coffee Industry Corporation (CIC) and the Central Provincial Government on the 6th of March, 2024 .
Under the agreement, a new coffee mill will be built in the Central Province within the next four years, which will allow for the processing of parchment coffee to green been (hulling) to take place in Central before the beans are exported to places like Dubai in the United Arab Emirates, where robusta and arabica coffee from Central both have an existing market.
Acting Provincial Administrator Edward Kila welcomed the team from CIC and spoke on the long overdue signing of the agreement.
“The good Madam Governor (Rufina Peter) has challenged us administratively to lead this MoA signing, as she is I am little disappointed that this MoA has been deferred on two occasions, clearly indicating the drive by Madam Governor who wants to commence the implementation of the MoA, given the amount of work that needs to be done to develop the coffee industry in Central Province and its potential impact on the household incomes of coffee farmers and the local economy," said Mr. Kila.
The importance of CIC working with the Central Province was expressed by Steven Tumae, its Chief Operating Officer.
“We used to have a coffee mill here at 14-Mile past the old Hugo Cannery, since then it has become nonexistent," he said.
"The reason why CIC is very interested to work with the Central Provincial Government is because the PNG Government under the MTDP (Medium Term Development Plans) 3 & 4 development plans has given CIC targets to achieve and in the Highlands, people are saturated as there is no big land to plant coffee."
"But in non-traditional coffee-growing areas like Enga, Southern Highlands Province, Hela, Central, AROB, Gulf, Northern, and Milne Bay, these are the areas CIC will fulfill the production and export targets from, so because of the Central Provincial Government's interest in coffee, we are pushing Central to be prioritized before the other provinces," stated Mr. Tumae.
Mr. Tumae also revealed that as part of CIC’s drive to push coffee for the Central Province, an extension officer will be added to the existing extension officer on ground for Central, and another such officer will be added for Gulf.
CIC’s Corporate Service Manager, Smith Baba, spoke of the CIC’s strategic plans and what they hope to achieve.
“In our CIC strategic business plan, by the year 2030 we should export 3 million green bean bags and fetch 1 billion kina in foreign currencies. To achieve this, CIC cannot stand alone, we need strategic partners, we need strategic partnerships and we are happy that with this MoA Central is coming on board," he said.
"Now to achieve this 3 million green bean bags for PNG, from calculations we need about 400 million coffee trees to achieve that, and currently we have about 17 coffee-producing provinces, Central province is within that 17, so we if divide 400 million coffee trees to the 17 coffee producing provinces, each province should have about 23,529,412 coffee trees so that we can achieve that 3 million green bean bags."
"But then, CIC needs to know how many coffee trees are existing, and the balance of coffee trees required,” Mr. Baba said.
According to Baba, CIC records show that Central province has 4 million coffee trees, with the potential production of 32,000 green bean bags annually and to export 100 containers shipped annually.
“So the current potential economic value for coffee in the Central province is K19.2 million annually injected into the local economy just from coffee alone. The province now, with our extension work going on the ground, we can reach up to K30 million if we aggressively work on the structure of the MoA going forward, so we are talking serious business here,” Baba stated.
Under the agreement, a local certification and inspection export office built in the Central Province will allow for export processors licenses. This will break the cycle of coffee being sent to Lae for hulling.
Discussions are also taking place for coffee to go into the Japanese market, which signals exciting times for Central Province and the Southern region.
The Governor for Central Province and the Minister for Coffee will sign as witnesses to the MoA at a later date, when CIC organizes 5 to 7 coffee-growing provinces coming together to sign MOAs with CIC Management and the Coffee Minister.
The Goodman Fielder International (GFI) is calling on the Government to establish a commercial corn industry in Papua New Guinea (PNG). GFI Managing Director, Mr. Sun Xing Tao made this call during the visit of the Minister for International Trade and Investment, Hon. Richard Maru and NARI team to GFI’s new feed mill at 11mile in Lae on Tuesday.
“With our new USD200 million worth world-class feed mills we can produce chicken and pig feed as good as anywhere in the world depending on what the farmers want. Right now, we are safe importing wheat as our basic ingredient for feed, however, our big challenge is that we wait for over a month for our order to arrive and it is very expensive because of the declining value of the Kina. We are willing to substitute to a corn-based diet and buy all the corn that local farmers can produce so we can reduce imports of wheat for feed. The Government must support us by establishing a commercial corn industry so we can fully utilize our feed mill whose current under-utilized capacity is around 6, 000 metric tons per month (72, 000 metric tons per year) which is more than enough to replace all importation of poultry feed,” said Mr. Sun.
Minister Maru encouraged GFI to negotiate an MoU with NARI to go into large-scale commercial corn faming to supply feed to GFI feed mill.
“PNG imported over 49, 000 metric tons of feed last year. We have to stop importing by going into large-scale commercial corn farming so we can stop spending over K70 million annually to import feed alone- this money should be going into our people’s pockets. The market and the capacity are already here but we are not producing. Once we start using local feed, we will ban all the imports of feed so we can support the local industry,” said Minister Maru.
In a significant move to bolster its agricultural sector, the Eastern Highlands Provincial Government unveiled its K432 million 2024 budget, emphasising a strategic pivot towards agriculture with the objective of diminishing reliance on imported staples such as rice. This initiative was highlighted during the budget presentation to Prime Minister and Treasurer, Hon. James Marape, on Tuesday, March 5, 2024, by Eastern Highlands Governor, Hon. Simon Sia, alongside Unggai-Bena MP, Hon. Kinoka Feo, Provincial Administrator Allen Los, Deputy Administrator Michael Mogia, and key provincial administration officials.
Prime Minister Marape commended Governor Sia and his team for aligning the provincial budget’s focus with the national government’s agricultural priorities. He underscored agriculture’s pivotal role in achieving food sustainability, curbing capital outflow through importation, and enhancing foreign exchange through local production.
“The food production sector presents the most immediate opportunity for import replacement, particularly given the Eastern Highlands’ traditional agricultural strengths. I commend your leadership for elevating the national focus on economic growth through agriculture,” Prime Minister Marape stated.
The 2024 Eastern Highlands budget totals K432,083,300, with K49,355,400 generated internally. Despite a 10% reduction in the National Government’s contribution, Governor Sia remains optimistic about the province’s self-reliance and its strategy to navigate financial constraints.
Significant allocations within the budget include K160 million and K130.6 million for the establishment and operation of key economic projects such as coffee downstream processing, chicken hatchery and feed mills, along with rice, mushroom, and livestock initiatives. These projects, though costly to initiate, promise substantial returns, with gross income from coffee processing and poultry projects projected to reach K1.4 billion after one year.
The province has already seen success with the introduction of Juncao rice and mushroom projects, facilitated by the Chinese technical agency Juncao. These products are now available locally, with plans underway to expand production through additional land acquisitions.
Governor Sia expressed gratitude towards Prime Minister Marape for recognising Eastern Highlands as an agricultural hub by assigning the Agriculture Ministry to Obura-Wonera MP, Hon. John Boito. He emphasised the province’s significant contribution to the country’s coffee exports and its potential for further growth.
Governor Sia also highlighted the Connect PNG programme’s role in improving infrastructure and facilitating agricultural development through the construction of nine coffee roads spanning 850km in the province, underscoring the critical need for accessible transportation for farmers and the efficient movement of produce.
The Eastern Highlands Provincial Government’s 2024 budget marks a strategic shift towards agricultural development, aiming to enhance self-sufficiency, reduce import dependency, and foster economic growth through strategic investments and projects in the sector.
The Minister for International Trade and Investment, Hon. Richard Maru in his statement to the World Trade Organization (WTO) on the Fisheries Subsidies Agreement which had been discussed for many years said the Pacific Region had every reason to be concerned about the future of the fisheries industry because 50 per cent of the world’s tuna supplied by the Pacific Island States, with PNG accounting for 10 percent of the world’s supply.
“For the Pacific, we are concerned about overcapacity and overfishing because of the harmful effects that it will have in depleting all our fisheries resources, hence we cannot allow anyone to destroy the industry. The Fisheries Subsidies Agreement must safeguard the interest of the Pacific Region not only because we own and supply 50 per cent of the world’s tuna but because most of our island countries’ only renewable and sustainable resource is their fisheries resources. We cannot continue to allow a fisheries regime where few distant water fishing nations continue to exploit our resources in an unsustainable manner by proving subsidies that result in overcapacity and overfishing. Destroying our fisheries means destroying the lives of our people, destroying our current and future generations, destroying our economies, and destroying our livelihood. We will ratify the Agreement only when we are happy with the text because it is our responsibility as the custodians of the healthy fishing stocks on earth to make sure that it is responsibly harvested so that the world will continue to have fish supplies now and into the future,” said Minister Maru to set the context of his statement yesterday at the WTO 13th Ministerial Conference (MC13) in Abu Dhabi, United Arab Emirates.
Minister Maru fully supported the statements made by Fiji and Samoa who spoke on behalf of the Pacific ACP Member States and also thanked Australia, India, Bangladesh and the African nations for strongly supporting the position of the Pacific Island States and for their appeal to the WTO to hear the plight of the Pacific Island nations.
“For us the bottom line is this: Papua New Guinea and all our Pacific Island States continue to demand that the Additional Provisions must include a standstill and a rollback for the top subsidizers which mirrors the commitment we have all made in Sustainable Development Goal (SDG) 14.6. In W10 this would be a new A.1.1(d). Without a standstill and rollback for the Tier 1 members, the negotiations will be a failure,” said Minister Maru.
Minister Maru further stated: “We appreciate the negotiations, however, there are several pertinent issues that I wish to raise regarding disciplines to Overcapacity and Overfishing in Article A, Special and Differential Treatment in Article B and Transparency and Notification in Article C. If we are to deliver on SDG 14.6, we need a pragmatic, concise and credible agreement that will eliminate certain forms of subsidies that contribute to Overcapacity and Overfishing. The most harmful subsidies are the ones that keep distant water fleets at sea. Yet we see the watering-down of the text to reflect a select few distant water fishing interests. Firstly, Article A.1 does nothing to reduce the level subsidies. It requires measures that aim for sustainability, but it does not require actual sustainability. A proposed text for a standstill and rollback has been submitted to the Secretariat. These would require minor amendments to C.4 and C.5 to add the base year of 2023. A.2 is currently the only article that addresses the economic harm of subsidies. It needs to survive. Without it, the Pacific is being punished for having the sole remaining sustainable tuna fishery. Distant water interests are being subsidised to exploit our waters. Footnote 16 is also essential to clarify the meaning of A.2. Secondly, Article B – there is still an imbalance between effective disciplines on subsidies contributing to overcapacity and overfishing on one hand, and appropriate and effective special and differential treatment on the other hand because it does not take into account our special and unique circumstances - it does not meet our interests on small scale fisheries with no clear definition to demonstrate its characteristic and features to be fishing more or less that its contribution to OCOF is unjustifiable; it falls short on the mandate to accord appropriate and effective SDT principle. This Agreement must not prevent Small Island Developing state members from using subsidies to develop its fishing fleet. This includes exemption on disclosure of pricing of fishing access through allocation of licences, fishing rights or quotas which are important fisheries management tools. In doing so, we strongly view larger subsidizers should be excluded from B.5. In relation to Article C, we continue to propose the deletion of paragraph (iii). I conclude by reaffirming Papua New Guinea’s commitment to reaching an outcome in the fisheries subsidies negotiations so we can have an agreement.”
The Minister for International Trade and Investment, Hon. Richard Maru and the New Zealand Minister for Agriculture, Hunting and Fishing, Forestry, and Trade, Hon. Todd McClay have agreed for a small Papua New Guinea (PNG) delegation to visit New Zealand in the last week of April to hold high-level trade talks. The two Ministers agreed on this in their meeting recently at the margins of the World Trade Organization (WTO) 13th Ministerial Conference (MC13) in Abu Dhabi, United Arab Emirates (UAE).
Minister Maru said the visit to New Zealand in April will be to learn from the experience of New Zealand’s capital market industry and seek New Zealand Government’s support to transform the Securities Commission of PNG and the capital market industry of PNG. Apart from the capital market industry, the PNG delegation will also visit the chicken and dairy farms in New Zealand and invite the New Zealand investors in these industries to invest in PNG.
“We want to look at New Zealand’s chicken industry and invite the New Zealand investors in this industry to come and invest in PNG because we still continue to import an estimate of over K100 million worth of chicken annually and this results in loss of jobs and revenue for our MSMEs, SMEs, and our industry. We want to stop that. We also do not want to be exposed to the risk of imported chicken diseases like the Avian Influenza and others. We want to produce enough day-old chicks to supply the entire need of our nation, our farmers, and our industry so we are able to produce enough chicken locally to meet the growing demand for chicken. We also want to meet and invite some potential New Zealand investors to invest in our Special Economic Zones,” said Minister Maru.
Minister Maru added: “We also want to meet the Indigenous Maori Commission to discuss and learn about how indigenous Maori businesses are doing business in major industries. This is a lead-up on part of our preparations to host our first PNG Indigenous Business Summit in August this year at Kokopo, East New Britain Province. We really want to learn from the success of Maori indigenous businesses and also consider inviting some of them to be the speakers at our PNG Indigenous Business Summit.”
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