Photo: Recent Visit by Fijian PM and Delegation to Ilimo Farm
Papua New Guinea has a warm and rainy climate, rich soil, and abundant water resources, and is blessed with naturally adaptable conditions for farming a wide variety of crops.
Despite these favourable factors, the country still relies on imports to feed its population. Among the top imported products are vehicles, fuel and heavy machinery, rice, flour, and meat, which are basic dietary staples which consumers pay inflated prices for due to a lack of domestic commercial production.
Ilimo Farm – PNG's largest vegetable greenhouse and dairy facility
In its commitment to making PNG a self-sustaining agricultural producer, Innovative Agro Industries (IAIs) Ltd has been visible in the country's agriculture sector since 2011, with projects involving farming, greenhouse, poultry, and dairy.
Since its inception IAI have introduced and have been applying Israeli technologies and expertise to PNG to help contribute to the country’s food security and agricultural productivity.
In an interview, President of Innovative Agro Industries, Ilan Weiss said: "By introducing advanced technology and best practices, productivity and quality are set to increase, resulting in better income and welfare for local residents".
In 2014, IAI established the Ilimo farm, which has been producing over 100,000 kilograms of high-quality vegetables and dairy products all year round. This compromises an entire value chain that includes seedlings production, vegetable cultivation, sorting, packaging, and even marketing.
Weiss has been leading IAI in PNG since 2011, and its goal is to address the challenges that will enable PNG to upscale its agricultural output. These include a lack of infrastructure and logistics outside of Port Moresby, financing, governance, and a commercial mindset among farmers.
“To be successful in PNG, one needs to ensure service and control of the full supply and value chain. There are no service providers or opportunities to outsource, and this is the reason that we have developed fully integrated agricultural projects.” Weiss said.
Indeed, Ilimo is one of many projects in action that are helping to transform the lives of local people. Combined, IAI’s developments have provided job opportunities to more than 1,000 Papua New Guineans from all walks of life, the empowerment spreading to hundreds of small-scale farmers and suppliers who can now rely on a steady, commercial income stream.
Such farmers include vegetable producers, in which Weiss highlighted the example of a frozen vegetable enterprise in the Highlands region that is helping to remove the reliance on imported goods.
Recent Visit by Fijian PM and Delegation to Ilimo Farm
On Saturday, 20th May 2023, Innovative Agro Industry was proud to host the Prime Minister of Fiji, Honorable Sitiveni Rabuka, his wife Madam Sulueti Rabuka, and the Fijian delegation at their state-of-the-art Ilimo dairy farm and 9-Mile vegetable farm.
The Honorable Prime Minister and delegation had an enriching experience as they explored the farms, witnessed the entire Grass-to-Glass and Field-to-Fork processes, gaining valuable insights into the farm's agricultural practices, and even had a taste of all 'PNG Made' produce from fresh milk and ice cream, fresh vegetables and fruits, as well as a variety of juices.
IAI were grateful to the Fijian PM and expressed their gratitude towards the delegation and thanked the Prime Minister for recognizing their commitment to food security, sustainability, and their aim in building strong partnerships across the Pacific.
Fijian PM Rabuka and his delegation said the Ilimo farm is one of Papua New Guinea and the Pacific Region's most advanced farms. His delegation will take home methods used at the dairy and fresh produce farms back to Fiji and have it utilised and incorporated into the agricultural space, he added.
Rabuka said: "It was so sad that we have not seen this, the possibility of opportunity in PNG over the last 50 years or so. This morning (Saturday) has been very useful, I’m sure the officials in the delegation will take a lot back with them and try and incorporate them into the agro industries at home (Fiji)."
As host to the visit, IAI’s Weiss said it was a chance “for them to showcase what we were doing in PNG, the progress and advancement we have done in the field of agriculture and food production.”
“We take a lot of pride in what we are doing, put in a lot of passion, agriculture is long-term investment,” he said, noting the Fijian delegation was impressed with what they saw.
Innovative Agro Industry is the only producer of milk, yoghurt, and ice cream in the country, and invests in vegetable production and the frozen potato chip brand Kuk, named after a heritage site in Western Highlands.
IAI Ltd Scope and Social Impacts in PNG
IAI Ltd is an affiliate of the LR Group, a leading global project development company which has been active since the 1980s.
All IAI projects integrate and implement Israeli knowledge and expertise which in turn leads to enhanced production capabilities and profitability.
The company initially set up its first fresh produce farm at Nine-Mile before expanding its footprint throughout the country. The Nine-Mile farm includes six hectares of modern greenhouses, as well as a central packaging and logistics centre.
Currently IAIs projects have generated over 1,000 new direct job opportunities employing Papua New Guineans of all walks of life, from university graduates, professionals to general staff.
The company's projects further engage hundreds of small-scale farmers that supply their Agro Industrial Centres (AICs) throughout the country, turning subsistence farmers into cash cropping farmers.
Each of the company's AICs is tailored for its location and the market demand to create a value and supply chain that will provide food security, import replacement and local capacity building. For example, in Hela Province, near the Southern Highlands, the organisation is formalising plans for a coffee industry rejuvenation development.
A memorandum of understanding was signed between IAI and partners ExxonMobil, Mineral Resources Development Company (MRDC) and local governing authorities in a public private partnership that will impact up to 5,000 people over the next five years through coffee production and marketing.
"This is key to revitalising the industry in PNG. We are looking to plant up to 15 million new coffee trees in the province, and our team has been working with partners including the Coffee Industry Corporation to develop a model that will empower the people of Hela", Weiss said.
"The project will diversify the economic base and further encourage the development of additional small enterprise. Running parallel to the coffee project will be other agriculture initiatives – as coffee takes a long time to grow, we have developed a maize programme to provide feed to our chicken farm in Hela", he added
It is this continued creation of employment and earning opportunities for staff and farmers that forms the central motivation for all of IAI’s future planning and delivery of projects.
Meanwhile, Weiss highlighted the aspect of local content when commenting on the success of building IAI’s training programmes which have resulted in PNG nationals holding key positions in all of its projects.
“The goal is to have a close to 100 percent Papua New Guinean workforce at all levels of our operations,” he says.
"A company is only as good as its workers. We are commercially oriented, obviously, and we are definitely not shy in employing innovation, but what I believe sets us apart is our staff at all levels and the passion they bring to their work notwithstanding the challenges".
References:
1) innovative-agro.com, https://www.innovative-agro.com. Innovative Agriculture (Agro) Industry Limited
2) Oxford Business Group https://oxfordbusinessgroup.com › t... Ilan Weiss, Chairman, Innovative Agro Industry: Interview
3) Loop PNG| Rabuka visits Ilimo Farm https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.looppng.com/png-news/rabuka-visits-ilimo-farm-
4) LR Group https://lr-group.com › project › ilim... Ilimo Dairy Farm, PNG - LR Group - Making Vision Reality
The Marape-Rosso government will very soon announce “special incentives” to support loyal players in the manufacturing, agriculture, forestry and fisheries sectors focused on serious downstream processing in the country, Prime Minister Hon. James Marape has said.
PM Marape announced this to members of Lae Chamber of Commerce & Industry on Thursday, May 25, 2023, when he was addressing a breakfast meeting in Lae.
Pointing out Goodman Fielders latest K800 million processing facility in Morobe Province as an example, the Prime Minister encouraged Lae’s manufacturers and those with businesses in agriculture, forestry and fisheries to get into this downstream processing space.
“I want to pay special mention to Goodman Fielder who have come in and brought in a K800 million worth of investments in the country,” said PM Marape.
“For those of you already doing business, we want to put up incentives so you can produce here and export from here, and bring back the money into the country.
“Those of you in this space, our Ministry of International Trade has announced the policy initiative on giving you tax holidays on the investments you are putting into the downstream of agriculture, fisheries and forestry. So keep a look out and keep working.
“These incentives will be announced very soon. In fact, within the six months before the 2024 Budget is brought in.
“Agriculture remains the great focus for us – agriculture exports, downstream forestry exports, downstream fisheries exports. We will not make a subtle turn.”
He said Lae and Port Moresby would be the starting points, to act as “agriculture enclaves” from where the Government would like to expand to other areas that already have enabling infrastructure such as a developed port, sustaining power, good road and other supporting infrastructure.
For the Fisheries sector, the Prime Minister said the recently-signed Shipriders Agreement with the United States opened up the opportunity for the US Navy to help the country in monitoring and surveillance of Papua New Guinea waters.
“For the first time ever, we have a very real chance of properly monitoring and containing illegal fishing, and knowing exactly what we are capable of making in fisheries. We are developing the Madang Maritime Industrial to add to what we are doing in the Fisheries sector.
“We also have set aside money for the development of Special Economic Zones to achieve a sustainable economy in agriculture, forestry and fisheries. We want to move toward the downstream processing space at the earliest,” PM Marape said.
Fishing Industry Association of PNG's Tuna Purse Seine Fishery rated the largest global tuna source of MSC-certified tuna
The Fishing Industry Association of Papua New Guinea (FIA PNG) has once more gone beyond its expected boundaries to achieve another milestone for the fishing industry relating to the association’s purse seine fishing method.
Purse seines are used in the open ocean to target dense schools of single-species pelagic (midwater) fish like tuna and mackerel. Some of the main species fished with purse seine gear are southern bluefin tuna, Australian sardine, blue mackerel, and jack mackerel.
FIA has recently undergone a strict, exhaustive, and robust scope extension assessment by Scientific Certification System (SCS) Global Services for their Geographical Scope extension into the waters of the Parties to the Nauru Agreement (PNA) and the Western Central Pacific Ocean waters.
They are proud to announce that they have collectively become the "largest tuna supply source with 750,000 MT of raw material that includes Yellowfin tuna, Skipjack tuna and Bigeye tuna” under their FIA PNG Marine Stewardship Council (MSC) tuna fishery certification.
The waters of the PNA member-countries consist of Kiribati, Tokelau, Tuvalu, Solomon Islands, Nauru, Marshall Islands, Federated States of Micronesia, and Palau, and are the most productive waters that supply more than 50% of the global tuna raw material.
The President and Chairman of FIA PNG, Sylvester Pokajam stated: “Our current tuna fleet of fifty-five (55) tuna purse seiners is fishing inside the PNG Exclusive Economic Zone and Archipelagic Waters and are having good catches. However, we applied for the geographical scope extension only because we do not know how climate change will influence the tuna stocks' behaviour and migration patterns”.
"We safely guarantee our stakeholders, clients, and retailer partners that we will maintain the same rigor with the 100% observer onboard coverage, iFIMS real-time data collection and Global Fishing Watch (GFW) in accessing our Vessel Monitoring System".
"FIA will also like to ensure our clients that we will maintain best practices in Global Dialogue on Seafood Traceability Key Data Elements, data collection & share, and most importantly, the FIA PNG accountability and management control system under our Responsible Sourcing Policy", Mr Pokajam said.
The announcement of becoming the largest tuna supply source “is a result of great teamwork by our FIA PNG tuna fleet members and our FIA PNG office team to provide enough verifiable evidence to show how we are managing our fishery in a responsible and transparent manner to SCS Global services, the MSC conformity assessment body,” he said.
Mr Pokajam also expressed his gratitude to the country's flagship in the fisheries sector, and expressed that FIA greatly appreciates the support of the National Fisheries Authority (NFA) as “the guard and regulator of our fisheries and tuna fleets.”
Pokajam urged all of FIA's retailers and global tuna markets to ensure a stable and sustainable tuna supply, aligning with the United Nations Sustainable Development Goals (SDGs) of food security.
The Global Dialogue on Seafood Traceability (GDST) announced on the 18th of April 2023 that the Fishing Industry Association of Papua New Guinea's (FIA PNG) version of Fisheries Information Management System (iFIMS) software has successfully passed the GDST Capability Test. [1]
The GDST Capability Test is an online platform that allows businesses involved in the fisheries and seafood industries to verify whether software solutions can deliver on their promises of compatibility with the GDST interoperable traceability standard. Software products that pass this test are eligible to carry the “GDST Capable” logo. [2]
PNG FIA’s Sustainability & CSR Director Marcelo Hidalgo stated it is a great achievement for GDST to recognize the organization as a competent association to provide transparency in the fisheries industry in the Pacific. [1]
“We, the Fishing Industry Association of Papua and New Guinea (FIA PNG), are thrilled that our version of the iFIMS (Fisheries Information Management System) has passed the GDST Capability Test. As a vertically integrated tuna harvesting operation in the Western Central Pacific Ocean; it is important that this complex fishery be recognized as GDST-capable.”
In relation to the announcement, GDST Executive Director Greg Brown also expressed positive sentiments to the PNG group.
"The ‘GDST-Capable’ logo is awarded to software that is capable of fully implementing the GDST Standard. It’s exciting to see another key player in the Tuna sector, FIA PNG, make this important step towards enhanced transparency and assurance against illegal, unreported, and unregulated fishing," Brown said. [1]
The GDST is an international, business-to-business platform established in 2017 to create the first-ever global industry standards for seafood traceability.
More than 60 companies and associations participated in the GDST’s consensus-based drafting process, with strong participation from around the world, across the supply chain, and at all enterprise sizes. [2]
GDST focuses on partnership and participation with organizations that are dedicated to advancing the standardization and adoption of Interoperable Traceability throughout fishery and aquaculture supply chains around the world through GDST 1.1 governing information content and data formats for seafood traceability systems.
Interoperable traceability provides operational efficiency, manages and mitigates risk, provides easy and certain access to Food Safety recall and certification information, communicates product provenance, and facilitates global market access.
The Global Dialogue has laid the foundation for systems to build on setting the stage for fully transparent seafood supply chains. [2]
1) Fishing Industry Association (Brief Interview) https://www.fia-png.com
2) traceability-dialougue.com/www.thegdst.org.
British American Tobacco PNG (BAT PNG) and Fresh Produce Development Agency (FPDA) have joined hands to aid rural bulb onion farmers in Papua New Guinea (PNG). The partnership aims to provide financial assistance to the farmers and increase the quality and quantity of their produce. As a part of this initiative, BAT PNG will contribute K1 million for the construction of 50 solar dryers for bulb onions in different locations in PNG, with each dryer costing around K20,000, totaling over K1 million for two years.
This partnership marks BAT PNG's first investment in the agriculture sector. "The government’s goal of reclaiming PNG through agriculture highlights the crucial role that agriculture plays in the country’s food security and economic stability. We are pleased to partner with FPDA who are experienced and credible partners in this space," said BAT PNG General Manager, Vamid Maksimenko.
The FPDA will manage the funds and oversee the construction and placement of the solar dryers in the bulb onion farming cooperatives across PNG. The project will benefit about 3000 to 5000 onion farming households, helping them reduce post-harvest losses related to drying and storage issues.
FPDA CEO Mark Worinu emphasized the importance of improving the quality of local bulb onions and the challenges involved in the curing process. He added that the solar dryer partnership with the University of Technology has already improved the curing and post-harvest management of bulb onions. The partnership with BAT PNG will provide additional support to the program, and FPDA is ready to implement the project in the next two years.
This initiative is a significant step towards promoting sustainable agriculture and improving the livelihoods of the farmers in PNG. As the renowned author and environmentalist, Wendell Berry said, "The soil is the great connector of lives, the source and destination of all. It is the healer and restorer and resurrector, by which disease passes into health, age into youth, death into life."
Photo Credit: USCG Press CC BY 2.0
International Trade and Investment Minister Richard Maru is urging for more fish caught in Papua New Guinea's waters to be processed in the country, with a target of processing all of it. At present, only about 10 to 15 per cent of the fish caught in PNG is processed domestically, while over 80% is sent abroad for processing.
Maru voiced his concerns after the National Fisheries Authority (NFA) handed over K100,000 for the International Special Economic Zone (SEZ) summit. He stressed the importance of a domestication policy from the NFA, which he plans to present to Cabinet.
“We cannot have an SEZ without security of the catch. I am ready to back the NFA because we need jobs," Maru said. "We are going to go all the way to legislation, policy and whatever needs to be done to ensure that we unleash the fisheries industry and maximise the benefits.”
Maru believes that the Pacific Maritime Industrial Zone (PMIZ) in Madang can create over 50,000 new jobs and is an exciting opportunity. He is committed to taking the necessary steps to ensure that the fisheries industry is fully utilized to its potential.
Justin Ilakini, the Managing Director of NFA, said that they were working with the Ministry to implement the PMIZ in Madang. Ilakini stated that the NFA had been waiting for a clear policy direction, and that the SEZ was a positive concept.
"We are collaborating with the Ministry to make the PMIZ a reality, and we are excited about the SEZ concept. We are ready to move forward," Ilakini said.
Photo: Mr. Sylvester Pokajam, President & Chairman of Fishing Industry Association (PNG) Inc.
In response to a recent media publication regarding the scaling down of operations of one of the country's major fish processing operators, the Fishing Industry Association (PNG) Inc. has clarified and maintained that the country's tuna stock is still in abundance.
Cutbacks to business operations within the fisheries sector are mostly due to high imposed taxes and business expenses, the group added.
FIA stated this considering a recent media publication (not PNG Business News) which reported that one of its associated members, RD Tuna Canners, was scaling down due to its fishing fleet’s inability to supply its tuna processing plant with reports of the lack of tuna fish in PNG waters.
In an Interview with PNG Business News, the Chairman and President of Fishing Industry Association (PNG) Inc., Sylvester Pokajam, clarified and pointed out that the outset of the stated reports published on lack of tuna stock in that certain media publication is false and totally untrue.
"The status of the tuna stock (skipjack, yellowfin, bigeye and albacore) based on recent stock assessment indicates that they are all in healthy state and good shape,” he said.
"This is one of the well managed and highly sustainable fishery stock in the Western and Central Pacific convention area,” Pokajam clarified.
As shown in Table 1. Total average catch over the last five years (2018 to 2022) was 575,200 mt. (Refer to table)
Catch and Effort Summary
Pokajam specified that the issue reported in local media concerning one of FIA's associated members is inconsistent with data already provided and lacks basis.
"The problem associated with RD Fishing company is that RD fishing vessels stopped fishing as of October 2022. The main reason being that under the previous Government’s policy back in 2017, they (government) imposed a fee of US$10,500.00 (K37,0000) per fishing day for our domestic vessels (both PNG flag and locally based foreign flag vessels) that are vertically integrated with the processing plants".
"In the same way, RD fishing vessels are vertically integrated with its processing plant. The fish they catch are brought back in for processing locally in Madang. These vessels are being charged US$10,500 per day as do the other bilateral fishing vessels who do not even offload their catch to our local canneries for processing,” he said.
Table 2 shows the catch by domestic vessels over the last 5 years which represent around 20% as compared to 80% by bilateral fishing vessels as shown in Table 3. (Refer to table)
Mr Pokajam explained that the ramifications of the fisheries policy that has been in place for the last 5 years have seen RD fishing vessels having to stop fishing simply because they could not sustain their operational fishing cost.
Many domestic fishing vessels are also facing the same problem which has seen more than 30 PNG flagged vessels reflagging to other PNA (pacific island) countries who were charging much less than what PNG has been imposing as fees daily.
During the last five-year period, the Fishing Industry Association has been calling on the Government through the National Fisheries Authority to review this policy. RD fishing has been finding it difficult to source their raw material for processing because their vessels had simply stopped fishing.
Mr Pokajam explained further that no vessels can supply RD as they also must fulfil their supply contracts and obligations, and the price of fish is quite high. However, fish caught by bilateral fishing vessels that pay the same fee as the domestic vessels of US$10,500.00 per day do not offload their catch for processing in PNG.
Average total catch by bilateral vessels over the last 5 years as shown in Table 3 make up 80% of the total fish catch in PNG EEZ. (Refer to table)
"These fish do not even make it to our local canneries for processing but are taken back to their own countries for processing. These are serious issues that need to be addressed collectively to avoid any future negative impacts on our tuna fishing industry" Mr Pokajam explained.
Photo courtesy of New Guinea Highlands Coffee
The agriculture sector in the country has been experiencing an upswing in production activities, as noted by the Minister for Agriculture, Aiye Tambua. Notably, coffee, coconut, and oil palm have been the major commodities that have seen a significant increase in their production.
According to the Coffee Industry Corporation (CIC), the country has exported 840,000 bags of coffee, which is an improvement from the previous year's slightly passed 750,000 bags. Moreover, foreign exchange earnings have exceeded K800 million.
The Kokonas Indastri Koporesen (KIK) has reported that there is a growing trend in the export of white copra and copra mill. Although the annual coconut production is estimated at 85,000 metric tonnes, the processed copra stands at 26,000 metric tonnes, white copra at 30,000 metric tonnes, and copra meal is compensated by an increase of 10,000 metric tonnes in white copra. Furthermore, the total export revenue has increased to K206 million in 2022 from K171 million in 2021.
The Oil Palm Industry Corporation (OPIC) has reported a steady increase in the production and export of crude palm oil since the enactment of the Oil Palm Industry Corporation Act (1992). The fresh fruit bunch produced by smallholders has increased from 769,831 metric tonnes in 2019-2021 to 819,356 metric tonnes in 2022. The income for farmers grew from K405 million in 2020 to K760 million in 2021, and almost a billion (K964 million) in 2022.
While the production of the three main commodities has increased, there are still some issues that need to be addressed to meet the target production. Mr Tambua noted that the coffee berry borer is still affecting coffee production in the country, and the government is working to address this issue. Additionally, Kokonas Indastri Koporesen has been challenged to produce seeds and seedlings as the demand for local farmers is increasing. The expansion of oil palm into new provinces has been commended, but the industry needs to assist smallholders in selling their fresh fruit bunches since there are no mills available.
Photo credit: PNG Forest Industries Association
Prime Minister Hon. James Marape has called on logging companies, landowners and the National Forest Authority (NFA) to be involved in reforestation of areas that have been logged.
He made the call on Friday, March 10, 2023, at remote Kurindal in Lasul-Baining Local Level Government (LLG), Gazelle, East New Britain, when launching the brand-new KKC Veneer Mill. This is a project fully supported by Gazelle District, East New Britain Provincial Government and landowners.
PM Marape said the Government – through NFA - would give K3 million for reforestation of the area being logged in Lasul-Baining LLG, and gave K1 million to Gazelle MP and Fisheries Minister, Hon. Jelta Wong, as the first installment.
“I want to ask the investor, landowners and the NFA to be involved in reforestation. When you chop down trees, you have a plant a new one, so that forestry can continue in a sustainable manner going forward,” he said.
“I want NFA to get K3 million from Log Export Development Levy (LEDL) funds and work with the company and landowners in forest regrowth, plantation forest, and bring in balsa to be grown here.
“You can grow 1000 balsa trees on one hectare of land, with one cubic metre of balsa earning K400, which means a family can make up to K20,000 per year from one hectare. This K20,000 is more than the pay of people working in towns and cities. There is money on the land.
“I want to see forestry being a sustainable business in the Lasul-Baining area now and into the future
PM Marape commended the East New Britain leadership at all levels for being proactive in sustainable development through logging, agriculture, fisheries and tourism and said this must continue.
Statistics in 2022 have proven that the return of the Government’s investment in subsidizing price and freight for local coffee farmers is working.
Coffee Industry Corporation (CIC) Acting Chief Executive Officer Charles Dambui said the K1 million price and subsidy funding generated K7 million last year, and the Government’s intervention of K30 million for the price and freight subsidy in the 2023 National Budget is commendable.
“In terms of coffee, we always prioritize farmers that are reached by third-level airlines which are followed by Marine transportation and then of course by road. As we speak, the freight cost of getting a kilogram of coffee from a remote area across to the buying point is equivalent to the coffee price so sometimes you will realize that it is not economical,” Dambui said.
Mr Dambui stated that the continuation of the Marape Government’s subsidy program will increase coffee production statistics and put more money into rural farmer’s pockets.
He predicts there will be a likely increase in coffee production in 2023 on the back of the National Government’s financial support in the price and freight subsidy program.
“The government gave us K1 million for the freight subsidy and the return on investment was K7 million, in actual fact we freighted the coffee out from remote areas using that K1 million and when the cost of export was calculated it generated almost K7 million, so the freight subsidy program is the way forward,” he said.
The Minister for Agriculture, Aye Tambua, recently presented cheques to CIC with other agriculture commodity boards that received their first share of funding from the K30 million price and freight subsidy program -- this means the price of parchment coffee will now be tied at K7 per kilogram.
A portion of K1.5 million was given to the Coffee Industry Corporation (CIC) to carry out the price and freight subsidy support program this year.
Under its 2023 budget, the government has allocated a total of K30 million for the agriculture price support program and K20 million for the freight subsidy. The price support is specifically designed to support all commodities across the country to boost production in those sectors.
"The government has taken the right steps by setting the price at K7 and the CICs job is to make sure that the K7 price is realized by the farmers on the ground. We are taking that onboard and we will be working with selected buying points to ensure that we drive the government policy,” Dambui said.
Meanwhile, the CIC will continue to invest time and money to contain coffee berry borer pests throughout the country.
Dambui said the National Government’s drive to increase production level for this agricultural cash crop will fail if the disease wipes out the multimillion-kina coffee industry of the country.
“Without the coffee beans, all our initiatives will come to a stop so that's why our focus now is to control and contain the spread of the coffee berry borer. It's an economic pest that has a high chance of reducing the production in PNG as well as the country's coffee export,” he said.
"The coffee berry borer is currently spreading but the government is seriously looking into it to support the coffee industry so that we can control and minimize the spread of coffee berry borer,” Dambui said.
Photo credit: Paga Hill Estate
The Yangoru-Saussia District in the East Sepik Province is undergoing a phase of significant and progressive transformation as local farmers will benefit from a direct cash injection that will see a new revolution in cocoa production.
Currently, the Cocoa Board has reported that the district produced 9,000 metric tons of cocoa in 2022, the highest in the country. East Sepik produces 15,000 metric tons of cocoa in total, counting its the other six districts.
Given these overwhelming statistics, farmers have become victims of middlemen who facilitate the exports of dry cocoa beans. Just recently, a landmark board decision by the Yangoru Saussia District Development Authority (DDA) was made in a meeting in which they agreed to part ways with all the middlemen.
Yangoru Saussia DDA Chairman and local MP and Minister for International Trade and Investment Richard Maru said foreign middlemen who have been buying and exporting cocoa in the district are the ones who benefit the most financially from the hard labour of local farmers.
“So now we are working to create and implement solutions to cut off any interference from foreigners in the buying process from these foreign parties for local farmers to enjoy the benefits of their labour,” he said.
MP Maru added that the landmark decision regarding cocoa and vanilla was made also during the DDA meeting, based entirely on the survey carried out and fully funded in all 96 council wards of the district.
"Our District is the first in the province and possibly the country to undertake a first-ever detailed agriculture survey with particular focus on cocoa and vanilla production,” Mr. Maru said.
“Yangoru Saussia is currently producing 60 percent of East Sepik cocoa, as per the cocoa board’s statistics. East Yangoru alone produces over 50 percent of the district's cocoa and 30 percent of the province’s cocoa,” he added.
“Under the current business arrangement, foreign middleman export companies are still the winners from the toil and sweat of our farmers. Our decisions regarding cocoa have been to cut off the foreign middleman and to transfer the saved margin to our farmers through value-added increase prices," Maru reiterated.
According to the resolutions passed, YSDDA will invest K500,000 into Ninire Agro Investment Ltd (NAIL), a business arm and a subsidiary company of the district.
The company will then be in partnership with Innovative Agro Industries (IAI) and possibly with Kumul Consolidated Holdings (KCH) and will start buying cocoa from local farmers.
The people of Yangoru Saussia will also be eligible to buy shares in the company in which the board has already nominated the founding directors and will be managed by Innovative Agro Industries.
“YSDDA will also invest K500,000 to replace all wood fire cocoa fermenters so that solar dry quality cocoa beans can be introduced which will be able to fetch premium prices,” Mr. Maru said.
“To start, we will control and focus more on quality, which is to remove wood-fired fermenters and maintain the 100 percent organic stallholder farmers' production status. The next stage will be to process our own high-quality Sepik fresh chocolates and other by-products from our own cocoa,” the minister stated.
“In 2020, the national government had given each district K2 million in Covid-19 funding with guidelines that 50 percent of this funding will be spent on agricultural activities, 25 percent on Water Sanitation and Hygiene (WASH), and the other 25 percent on SMEs,” he added.
“The YSSDDA board had resolved that the agricultural component of K1 million will all be invested in cocoa to increase production, improve quality, cut off foreign middlemen, and improve prices and full ownership by our people.”
“We are expecting our increase in cocoa production to 18,000 metric tons per year, which will increase earnings from the current K55 million to over K100 million per year going directly to local farmers," Mr. Maru said.
According to data collected from one of PNGs biggest food manufacturing companies, Paradise Foods has been using only 2000 metric tons of cocoa per year to produce the Queen Emma Chocolate brand.
This gives way for a potential shift to downstream processing for the Yangoru Saussia District with their proposed production target of 18,000 metric tons of the best quality soar dried cocoa annually.
Meanwhile, the agricultural survey that was carried out in the district also revealed statistics on its vanilla production.
The findings showed that vanilla has about 6,918 farmers who produce 83 metric tons of sun-dried and cured vanilla beans, which produce a revenue of K25 million per year.
“For cocoa and vanilla alone, Yangoru Saussia generates over K80 million per year. We aim to double that production and increase earnings to over K100 million for cocoa and K50 million for vanilla per year. As mentioned, this is the first ever cocoa and vanilla research and survey undertaken by a provincial district,” the minister said.
The reports and recommendations highlighted in the survey will be used for planning in partnership with UNFAO (United Nations Food and Agriculture Organization), private sector investors, and other stakeholders to improve the cocoa industry in Yangoru Saussia and East Sepik Province,” Maru said.
The YSDDA has also agreed to make key interventions – a district cocoa and vanilla policy, farmer mobilization, memoranda with key stakeholders, central processing and marketing center with capacity building of farmers and extension officers, and an agriculture resource and service hub to support and coordinate the systems to be implemented.
“Apart from investment in helping to build more nurseries in the district to produce cocoa seedlings, we will be embarking on a new program to improve the production of yields per hectare for individual farmers working through the cocoa co-operative society network in our district. We want to focus on increasing the yield per hectare," the minister.
“East Sepik Province once had K5 million internal revenue, but it had increased to K15 million and is still climbing. How are we climbing when we have no mine? We are climbing on the back of cocoa and other agricultural produce,” Maru said.
The people of Yangoru Saussia district now must increase cocoa production by replacing old senile trees and planting new cocoa plots to see the investment in its business arm Ninire Agro's progress, he said.
Papua New Guinea has ceased issuing import permits for Australian and Asian raw poultry in a trade move some viewed as political maneuvering.
A blanket ban was imposed on the importation of frozen chickens into the country to protect the billion-kina local poultry industry.
PNG's Agriculture Minister Aiye Tambua announced that the ban will take effect at the end of January. He said that protecting the poultry industry from imported diseases is the main reason for the decision.
While authorities have made no official announcement, multiple industry sources said PNG customers had been told permits would not be issued for Asian and Australian chicken from January 6. It will not affect orders placed before the ban date, the government said.
A letter from PNG’s National Agriculture Quarantine and Inspection Authority (NAQIA) obtained by the media mainly stated that importers should “refrain from importation” of chicken products.
“The general public including importers and exporters are thereby informed that effective of 6 January 2023, NAQIA will cease issuance of import permit [sic] to import fresh, frozen and chilled chicken products,” the letter stated.
On the downside, PNG imports nearly K200 million worth of frozen chickens annually. To meet the demand for this favorite protein, the Agriculture Minister has admitted that the importation ban will make consumers pay more at the counter, but he’s confident the two major producers of frozen chickens in the country will fill the demand gap.
He also stated that protecting the billion-kina local poultry industry is important.
Minister Tambua says Niugini Tablebirds and Zenag had given guarantees to increase production, which will create more than 2,000 job opportunities for Papua New Guineans.
He further said that the ban will influence thousands of Papua New Guineans to venture into this poultry business to meet the demand, creating more income in the small to medium business space.
In relation, a lot of confusion has raised from the imposed ban as some importers have pointed out that the unofficial trade ban came after a push by The Poultry Industry Association (PIA) of PNG before Christmas, which claimed that uncooked chicken from Australia and Asia contained “exotic poultry diseases” and was “illegal”.
The said claims were made in a full-page advert in one of the country’s major daily newspapers, The National.
The letter by NAQIA to importers also repeated the accusations, saying: “The Poultry Industry Association (PIA) has raised concerns to the government through the Minister of Agriculture on biosecurity risks.”
Meanwhile, in a historic address to PNG’s parliament recently, Australian Prime Minister Mr. Anthony Albanese said he wanted the two nations to work closely to unlock prosperity.
He also mentioned the Australian Government’s intent to improve and to assist with PNG’s biosecurity measures.
“Our government also stands ready to assist PNG to improve your biosecurity regime to enable your farmers and producers to access international markets,” Albanese said.
Australia is PNG’s biggest trade partner with bilateral trade of over $6 billion in 2020, according to Australia’s Department of Foreign Affairs and Trade. The value of chicken exports to PNG was about $23 million in 2021.
Photo: Minister for Agriculture Aiya Tambua. Credit: Aiya Tambua LinkedIn Page
Minister for Agriculture Aiya Tambua has announced the new price support for copra or coconut farmers in the country.
Mr Tambua said brown coconut will now be bought at a price of K2, which is an increase of K1.1, while white coconut will be bought at K2.50, he said when visiting Madang province recently.
The Agriculture Minister's visit to Madang began with a visit to the Stewart Coconut Research in the North Coast area of the province. He was briefed on the ongoing work of the coconut research centre and how the Government could assist with its reports and recommendations through the Department of Agriculture.
Following his visit to the research centre Minister Tambua visited various coconut plantations in the area to have a close observation of the commodity. He was then shown to a local coconut nursery where he highlighted the announcement of the Copra Price Support Package.
"In the past years, Copra was bought for 90 toea for brown coconuts, but now the government has stepped in and brought the price up to K2, which is a big relief for all your local coconut farmers. White coconut, which was bought at a price of K1.50 before, will now be bought at a price of K2.”
“The current Government wants to ensure that people in the rural areas and villages must be able to earn money from their land," Minister Tambua announced.
On a national scale, Madang used to be one of the leading coconut-producing provinces. However, over the years mechanisms to support farmers and expand the industry declined. The province has now been challenged to plant more coconut trees and be competitive in the industry.
The Madang Governor, Ramsey Pariwa, said more support will be given to ensure that Madang's coconut industry is revived and developed.
"We will start making sure that Agriculture becomes a huge priority here in Madang in this new year and the following years to come," Governor Pariwa said.
The coconut industry contributes to the PNG national economy through the provision of employment and income for rural households and the generation of revenue from exporting copra, crude coconut oil (CNO), copra meal and virgin coconut oil (VCO) to overseas markets.
According to the National Population Census, about 564,328 households are engaged in coconut activities in PNG to either generate income and/or as food to sustain their livelihoods. This represents 35% of the total households in PNG or an estimated 2.6 million people of the total population.
The Agriculture Minister also presented the Coconut Industries Corporation K1 million to begin the implementation of the Copra Price Support Programme.
He also encouraged the Coconut Industries Board and Management to implement the Coconut Industry Strategic Plan 2016-2025 to the best of their abilities.
He stated that he will work as a team with the corporation to access appropriate National Government and donor funding for the successful implementation of the new pathway for the coconut industry in the coming years.
Photo: Secretary Dr. Nelson Simbiken
The Department of Agriculture and Livestock (DAL) is set to launch its 2023-2027 corporate plan this month, according to acting Secretary Dr. Nelson Simbiken. This plan will aim to drive the sector forward and for the first time, DAL is also upgrading its information and communication technology (ICT) systems.
Dr. Simbiken stated, "For so many years, DAL did not have an ICT infrastructure. The only one we had was the Food and Agriculture Organization (FAO) supporting us, and they only came in as consultants. As a result, DAL was not connected through ICT to the regional offices." However, things are changing. "Since I came on board in May 2022, we have set up an ICT system in the department. We contracted Telikom to do a complete audit of the department's ICT system and now DAL has a modern ICT system that will connect to the provinces," he said.
The department is also digitizing its finances and will eventually move to a cloud-based system. Dr. Simbiken highlighted that this is a significant achievement for DAL as it has never been done before.
The corporate plan also aims to 'right-size' the sector and cut excess expenditure. DAL will establish an internal committee to review every expenditure in the agriculture sector to ensure that funding is being used to deliver services to the people and improve compliance and governance. Dr. Simbiken emphasized that this is the first time DAL is taking such initiative and it is key to making DAL accountable for all its funding.
In conclusion, Dr. Simbiken stated that agriculture will be the driver for economic independence for the government's vision.
Photo: Ilimo Dairy Farm. Credit: LR Group
There is a need to build two more dairy farms in the country since Papua New Guinea is still importing around K300 million worth of milk products into the country. Minister for International Trade Relations and Investment, Richard Maru said this when emphasizing on the need to bring in more investors into the country last week during the appointment of his acting Secretary.
Minister Maru said that the only Dairy Farm in the country is the Ilimo Dairy Farm outside Port Moresby which has saved the country K100 million in imports in a year and the farm has also created up to 500 job opportunities for Papua New Guineans, However PNG is still importing K300 million worth of milk products and the Minister has said that his Ministry and Department will make sure that two new dairy farms will be built in Morobe and East Sepik.
"We have been importing dairy products until we brought in the technology from Israel to set up the dairy farm in Ilimo and we have saved K100 million in dairy exports annually and also created 500 jobs but we are still importing K300 million worth of milk products, so we need to build two more Dairy Farms",
"This Department will make sure that by next year we will build two more Dairy Farms, one in East Sepik and the other in Morobe so in the next two years we will finally cease all these imports". Minister Maru said.
He added that the new Ministry of International Trade Relations and Investment is an important and Vital ministry that needs to be funded.
"We should know the importance and role of the Ministry and the need for this Ministry to be funded for our recurrent and capital",
Minister Maru further stated that he will look for partners around the world to come into the country and invest.
Meanwhile The Department of International Trade Relations and Investment had also announced the appointment of its acting Secretary Jacinta Waraku Manau who will head the new Department of International Trade Relations and Investment while James Joshua who was also appointed will lead as the Chairman of the Securities Commission.
Photo credit: RNZ
Prime Minister Hon. James Marape has launched his government’s policy on coffee which includes a target of 2,500 trees per family that aims to return interest to one of Papua New Guinea’s leading commodities that once was the highest agriculture revenue earner in the country.
The Prime Minister announced this in Banz, Jiwaka Province last Friday where he travelled to officiate at the launch of the Coffee policy and opening of the coffee festival where thousands of people gathered to witness and participate in the event.
He also announced that the Marape-Rosso Government would make sure that the price of coffee remains constant between K7 and K13 per kilogram for growers throughout the year starting next year in 2023.
“Do not listen to critics on Facebook and in newspapers. There are political and corporate critics who are against what we are doing and saying because there is now a tectonic shift against their corporate interests from the status quo,” said PM Marape.
“We are taking care of your children’s education with free education. We are connecting the country with good roads so now you can have access to good markets. We are putting in programs so you can become engaged where you are.
“You must return to your land and work. Grow coffee.”
PM Marape explained part of the new policy to elevate coffee quality and individual family interest in the cash crop was to encourage as many families as possible within the 17 coffee-producing provinces grow 2,500 trees.
The logic is that if families can get into smaller, more manageable coffee orchards as SMEs, they can concentrate on giving the trees and their beans the best care to ensure quality at the market.
“If one family can grow 2,500 trees, it can make between K21,000 and K25,000 per year to sustain itself,” said PM Marape.
The Prime Minister said beginning next year onwards, the price of coffee would not be allowed to drop below K7 as the Government has several agriculture support programs such as Price Support and Freight Subsidy to buffer against price drop.
“For price, A-Grade Coffee will make you between K9 and K13; B-Grade Coffee K8 and K12; and C-Grade Coffee K7 and K11. I assure you all, we will not go below K7,” he said.
PM Marape also called on the provincial governments of Jiwaka, Western Highlands and Chimbu to begin working collaboratively on coffee with a view to opening a Special Economic Zone to develop this cash commodity further.
He committed K5 million to each of the two provincial governments (Jiwaka and WHP) and K2 million to each of the coffee-producing districts of Jiwaka (North Waghi, South Waghi, Kerowagi, Dei, Mul Bayer, and Jimi) to begin exploratory and preparatory work to coordinate and link all coffee growers in the province and to begin implementing the 2,500 coffee trees per family policy beginning in 2023 where this sector is supported in the budget.
Prime Minister Marape also used the time to call on the youth of Jiwaka to give up drug and alcohol abuse and return to toil their land, grow coffee and make money to better their lives.
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