2024: The FAR, Federal Acquisition Regulations - Part 29
Cash Crop Marketing and Production
1. Sidney Suma: PNG Country Manager
13 October 2022
Cash Crop Marketing and Production
2. Summary of Presentation
• What is PHAMA Plus?
• Key achievements of PHAMA Plus in Papua New Guinea (PNG)
• The operating environment in PNG
• Challenges/opportunities in cash crop value-chains in PNG (domestic and overseas)
• Export opportunities
6. Biosecurity
• AUD5.2m spent via PHAMA Plus on ASF response - NAQIA spent AUD6+m
• Disease contained - substantial loss averted
• Strong focus on gender and inclusion in risk and behaviour change communications- “ino
sanguma”
• ASF website developed www.stopasfpng.com
• HACCP systems established for 15 partners, (4 are current, 5 are in progress and 6 have not
renewed)
Key Achievements in PNG
7. Key Achievements (cont.)…
Coffee
• PNG Women In Coffee Association has a Strategic Plan and is now affiliated to International
Women’s Coffee Alliance
• CIC approved ports of Port Moresby and Rabaul as additional export points
• PNG Coffee Market Study produced in 2018
• PNG Coffee Symposium organised in 2019
• Introduced revised regulatory policy guidelines (RPG)
• Coffee Cuppers and roasters training and support for the growth of domestic coffee culture
8. Key Achievements (cont.)…
Cocoa
• Cocoa microlot licensing in place since 2018
• Linking producers with Paradise Foods Limited (Queen Emma Chocolate) and overseas
market access established for cocoa products
• Cocoa festivals, trade visits and combination drier experiments, flavour profiling and
chocolate competitions, buyer linkages completed
Coconut
• Coconut sector- development of HCVP cluster including HACCP certification for VCO
processors
• Buyer Linkages, buyer visits
9. Key Achievements (cont.)…
Market Access
• PNG Market Studies – looked at technical and economic feasibility of developing exports of cocoa,
coconut, coffee, fisheries, forestry, fresh produce
• Fresh produce: 336 fresh produce products were considered and only fresh (dry) coconuts, asparagus
(for winter windows), sweet potato (processed and frozen) and chilli (subject to FF management) were
considered marginally feasible
• Handicraft and creative industries (linked to cruise tourism and personal consumption trade) – Vanuatu
tour for MB and ENB
• PNG Made Products – promotion and export of PNG Made linked to the Australia PNG Business
Council
• Market Access for commercial spice exports
• Focus on specialty and boutique markets for cocoa, coconut and coffee exports
11. • Various challenges exist in “ease of doing business”, e.g. availability of foreign currency,
corruption
• PNG has abundant renewable and non-renewable resources- opportunities for climate
change/environment focus
• Fast-growing population- 2.3% per year- growing urbanization- gender-based violence is
widespread
• Many plans exist across all sectors but implementation and coordination remains a challenge
• Infrastructure (road, air, sea transport) for rural access is improving- but not in the most
remote areas
Operating environment in PNG
12. Operating environment in PNG (cont.)…
• Lack of understanding of the MSME environment- terminology, finance, interest rates
• Knowledge of disease, diet, nutrition is very limited, especially in rural areas
• No obvious whole of government approach across all sectors (economic, health, etc)- new
government ministries will take time to settle
• The role of provincial administrations vs DDA (districts) vs national agencies- confused
functional and budgetary responsibilities
• PNG’s new Biosecurity Policy in place- allows clear focus for donor support
14. Challenges/Opportunities…
Domestic
• Cost of getting goods to market from rural areas- improve use of “aggregators”- build
economy of scale- not everyone can do the same thing. Improved understanding of MSME
roles will help
• Price subsidy needs to be strategic and not a disruptor, e.g. use for rural/remote transport
• Regulators should be facilitators with matching capacity, e.g. appropriate organization
structures
• Consistency of supply and quality remain issues to achieve consistent sales of specialty
products, e.g. coffee, cocoa
15. Challenges/Opportunities…
Domestic (cont.)
• Microlot exports still a challenge but the regulations are in place to facilitate microlot exports
• Ensure sector plans are aligned with GoPNG national development objectives and
strategies- improved coordination and whole of government approaches will assist value
chain stakeholders
• Opportunities exist to improve communications and share lessons learned along supply
chains- communications for development
16. Challenges/Opportunities…
Overseas
• Cost of transport- how can transport service providers help to facilitate reduced costs?
• Learning from successful experiences. Opportunities exist to improve communications and
share lessons learned from overseas sales and relationships- communications for
development
• NAQIA efficiencies- improve to facilitate exports
• Build relationships in overseas value chains
• Tell the “PNG story” more effectively and strategically, e.g. PNG Tourism Authority working
with CIC, private sector
• Exposure of PNG products overseas needs to be strategic and provide value for money