Papua New Guinea’s coffee production, exports and export earnings soared and recorded new heights in 2011. The Chief Executive Officer of the Coffee Industry Corporation, Mr. Navi Anis said that the Coffee Industry’s performance in 2011 was a significant achievement for the industry and the country since coffee was traded as a commercial crop in PNG.
Figures released for year ending December 2011 showed coffee production peaking at 1.5 million bags surpassing the 1.2 million bags reached in 1998. The 2011 production figures were also significantly high by 69% compared to 883,567 bags in 2010, which were attributed by a number of factors including, government intervention programs, expanded smallholder plantings, and a favorable climatic conditions.
Exports, as usual, tracked production and increased to 1.22 million bags from 931,149 bags in 2010, representing a 32% increase. Overall, this represented an average increase in the export volume of 9% increase over the last 6 years. Higher exports reflected increased production, more coffee being moved on-to the market as a result of the Freight Surety Scheme and more importantly, grower response to high coffee prices.
Export revenue from coffee last year reached K927 million, a 78% increase from the record earnings of K521 million in 2010. This is attributed to higher export volume compared to the previous year. This positive outcome has been due to continued and consistently high world market prices of coffee and the sheer resilience of growers, and important stakeholders in the coffee business. Out of the total export earnings, a major portion of 66% was received by the growers while exporters and processors received 19 and 15% respectively. The CIC projects 2012 export earnings to further increase to abillion Kina mark based on continued high world market prices, government intervention programs like the District Coffee Rehabilitation and Freight Surety Scheme which is used to move coffee to markets from the remote and areas of the country.
With various Plans, Government Interventions, Donors partners/NGOs and stakeholder collaborations and assistance like the World Bank funded PPAP Project, CIC will continue to endeavor to effectively and efficiently deliver research, extension and development programs to the industry at large for the benefit of coffee industry in the country.
Chief Executive Officer