Presented by Adnan Falak on October 13, 2022 at Port Moresby.

1. Investing in growth areas in the
Commodity and SME sectors
Adnan Falak
13 October 2022
Port Moresby

2. Market Development Facility (MDF)
• Australian and NZ Government-funded initiative.
• Active in 7 countries. Expanding into 3 new countries.
• Promote innovative business models/approaches.
• Seek positive social return.
• De-risk new/innovative business models.

3. Investing in growth areas
• Growing demand and supply.
• Semi formal value chains.
• Thousands household producers.
• Fundamentals are in place.
• Commodities – coffee, cocoa and vanilla among
others.

4. Growth in commodities
• Growing global demand.
• Supply disruptions.
• Higher commodity prices.
• Higher margins for quality commodities.
• Increasing local competition.
• Coffee exports to niche markets have improved its
CIF price - ITC

5. Price of coffee and cocoa

6. The challenges
• Population growth (2.7%) vs Economic growth ( av 2.3%)
• Climate change.
• Supply shocks.
• Declining exports of coffee and cocoa.
• Access challenges.
• Non- commercial mindset.

7. Our strategy captures opportunities
• Facilitating a shift in the commodity market.
• Partners with capacity and incentive.
• Leveraging strengths of private sector.
• Improved market functions.
• Working on sustainable business models.

8. Portfolio highlights
• Interventions in six niche sectors.
• 30-plus partnerships.
• 17 partners.
• Strengthened 5 market functions:
• Extension & Certifications
• Processing.
• Value Chain Financing & Ag-tech.

9. • 15,000 smallholders received benefits
• 35,000 smallholders accessed products or services,
• 1.1 Million (USD) MDF Investment
• 3.5 million (USD) Value of additional market transactions.
• 30,000 additional bags exported.
• 4 MT additional vanilla exported.
Results as of 2021

10. Lessons
• Interventions should be opportunity and demand
driven.
• Partner with strongest players.
• Identify the champions.
• Private sector driven services like extension.
• Transformation of business model is a key.

11. Recommendations
• Agriculture plan should target growth areas.
• Ag strategic plan should also target food & nutritional
security.
• Resource the ag strategic plan and align with GoPNG
dev. goals
• Private sector should be the lead partner in
implementation.

12. Thank you!