GOVT WANTS INCREASED COFFEE PRODUCTION

With the Marape-Steven government’s focus on taking back PNG through agriculture, it wants to see an increase in coffee production in the near future.
Minister for Agriculture and Livestock, Hon. John Simon told the Coffee Industry Corporation (CIC) during a recent visit to Goroka that the government wanted to see an increase in coffee production by at least by 20-30 percent this year and sustained increase in subsequent years.
Hon. John Simon was accompanied by Hon. Pogio Ghate, Vice Minister for Agriculture and Livestock (Coffee), Secretary of Department of Agriculture and Livestock, Mr Daniel Kombuk, and a representative from the Prime Minister’s Office, Malum Nalu.
Minister Simon said that the industry needed the right intervention to get things back on track that will trigger investment to increase production from its current 56,000 tonnes to 120,000 tonnes or more.
He said during these trying times, the agriculture sector could turn the economy around through exportable commodities. He said that close to K100 million each is required to increase coffee and cocoa production. This must be captured in the Covid-19 package to assist short to medium inter terms intervention strategies such as rehabilitation exercises and/or providing incentives for farmers in this critical time to increase coffee and cocoa production.
CIC Chief Executive Officer Charles Dambui said the industry needed active coffee producers to increase production among other obvious setbacks. “Our biggest challenge is to get the productive population into active coffee farming and create attractive incentive packages for them to fully participate and contribute towards increasing production.”
Dambui added that all exportable crops would generate new income into the country’s economy. He thanked Minister Simon for choosing coffee and cocoa under the stimulus package.
In terms of rehabilitation, Dambui said with the Productive Partnerships in Agriculture Projects (PPAP) modality, this is the way forward for rehabilitation of rundown plantations. Under this modality, plantations are sub divided and given back to surrounding communities or landowners to manage. Labour and security costs are better managed with the respective holders under this type of arrangement. “That is the modality we’d like to drive going forward,” Dambui said.
PPAP Program Manager Potaisa Hombunaka said what needs to be done is to understand the real needs of the farmers before any implementation work could begin. He said planning requires understanding the needs and willingness of farmers before implementation of any project can come into effect.
“We must focus on what the farmers want. One of the immediate things our farmers want are coffee pulpers. When famers have coffee pulpers they can meaningfully engage in rehabilitation exercises,” Hombunaka said.
He said many farmers away from road links need better roads to transport their produce to the markets.
Hombunaka urged the Minister that if he secures funding, he must ensure coffee pulpers are purchased and supplied to coffee farmers who need them at a subsidised price.
He said that another area that needs support is the coffee/ cocoa economic roads. Roads are important as they bring the famers’ produce to the markets.
He stressed that farmers are simple people that need very simple interventions. “Let us sleep, eat and talk with them and address their needs then they will address the government’s needs.”

K500, 000 COUNTER-FUNDING FOR COFFEE BRIDGE

Productive Public- Private Partnership is the way forward in providing effective service delivery to the rural populace in any development project.

Unggai-Bena District Administrator Jonathan Resis said this when presenting a cheque of K500, 000 counter funding on behalf of  Member Hon. Benny Allan to the Coffee Industry Corporation (CIC) on Thursday, April 9 2020.

CIC will put in additional K500, 000 to see the construction of this vital bridge in the Magitu area in the Unggai- Bena District.

CIC Chief Executive Officer Charles Dambui acknowledged the support of the Unggai- Bena Member Hon. Benny Allan, and his administration team for supporting coffee development in the district.

He urged other District Development Authorities to enter into such partnerships on kina for kina basis for the benefit to rehabilitate coffee economic roads  which will also provide for other socioeconomic  services for the people to access.

CIC-PPAP Manager Potaisa Hombunaka highlighted that farmers already know what their immediate needs are. The rural coffee farmers want their roads to be rehabilitated so they will access the market easily hence increased price. He mentioned that Obura Wanenara DDA is the first who partnered with CIC-PPAP to rehabilitate the Barabundora Junction to Nombia road. Okapa DDA had contracted a local company to rehabilitate the Ewande Junction to 2mile where CIC-PPAP is nearing rehabilitation of the 12.89 km road from 2mile to Wararutz near Porosa. Hence he fully supports the CEO’s call for other DDA to partner with CIC on kina on kina basis to rehabilitate coffee economic roads.

“They only need good roads and the rest will fall in line,” Mr Hombunaka said.

General Manager for Industry Operations Steven Tumae said once the bridge is completed, it would serve coffee farmers and communities in Magitu, Sogopehu, Katagu, Lahame, Hofaga, Sakanuga, Bagahinupa, Sekagu,  Sozugu in the Lower Bena LLG. “We need such partnership to deliver infrastructure services to our rural people.”

According to CIC- PPAP Senior Engineer Eric Abba, it will take about 4-6 weeks to bring the bridge to Lae from United Kingdom and then from Lae up to Magitu.

He added the road to benefit some 30,0000 people from Ward 4 and 5 of Lower Bena LLG has been scoped from Sogopegu to Hofaga and is 5km in length. The 36 metre Magitu bridge is part of the 5km access road from Sogopegu to Hofaga.

The road is located about 16km from Goroka town.

Patrol grading is expected to be carried out before the bridge components reaches Magitu. While that is being done, the tender process would be facilitated between April and July. By August, the bridge would be laid down, and construction would begin around September- October 2020.

NEW ONLINE SYSTEM TO PROCESS COFFEE EXPORTS

The Coffee Industry Corporation (CIC) is moving towards processing and documentation of coffee exports from Lae and other authorised ports using a new online system.
This follows the introduction of an online Coffee Export Management and Facilitation System (CEMFS) financed by Productive Partnerships in Agriculture Project (coffee component).
The Chief Executive Officer of CIC Charles Dambui said the online system will fast track processing of coffee exports including many common shipping documents efficiently without the fuss and delay associated with manual and paper documentation.
He added: “This new service will improve coffee export operations and enable us to be on par with international partners”.

“As time goes by CIC will integrate other features to make the online export Management system to be dynamic and robust. Our aim is to reduce turnaround time and also continue to improve and promote performances of all coffee export business,” he said.
Mr Dambui on behalf of PNG coffee industry acknowledged World Bank and IFAD or International Fund for Agricultural Development via PPAP (coffee) to provide many financial assistance to improve CIC’s capacity including installation of this online system.
Sam Menanga, Manager of Industry Regulations and Compliance (IRC) division of CIC said this is a big improvement but challenged all coffee exporting firms, freight forwarders and others “to work as partners to improve it”.
The online service was developed by SATEC an internet technology (IT) firm owned by Papua New Guineans. The company has 12 years’ IT experience and is based in Brisbane.
This initiative was financed by PPAP coffee at the cost of K200,000. The PPAP is a coffee rehabilitation project financed by World Bank and IFAD under a loan arrangement with PNG Government.
Project Manager for PPAP coffee Potaisa Hombunaka said IT is the way forward in today’s digital world to bring efficiency and remain competitive in coffee business.
The coffee manager added a normal stringent procurement process was involved to engage a qualified national firm to develop and set up the online export system.
“I believe in promoting Papua New Guineans. We have more than enough capabilities in the country and we can always seek their expertise from time to time.”
Simon Areke of SATEC explained they consulted with all including CIC’s Lae export office, exporters, Customs, NAQIA and freight forwarders to put together this system to be appreciated by all.
He said the system is user friendly because they only automated the forms CIC has been using with exporting firms, freight forwarders, NAQIA (National Agriculture and Quarantine Inspection Authority) and others to process and certify export of coffee.
“The system is very simple and you will appreciate it when you use it,” said Mr Areke.
He said CIC as the coffee industry regulator will be the administrator of the online service but assured coffee exporters that security of their offshore coffee contracts and other company information is guaranteed.
“We have installed block chain with excellent security systems where export contract details cannot be excess by others,” he said.
Following are other benefits of the online Coffee Export Management and Facilitation System:
• Exporters can monitor status of their application online.
• It is user friendly and simple to use where exporters can quickly edit information on automated forms using mobile phones and tablets from any location without the hassles of rushing back to their offices to make corrections or fill in new forms.
• There is a threshold of 24 hours for responses to application with a reminder to avoid delay in processing and documentation of forms.
• Number of forms to fill in has been reduced.
• The payment for overseas exports are done through bank cheques but the service can utilize an online payment system with the latest BSP exchange rates. It saves time and resources to arrange for banks cheques.

SATEC will host this service initially from Brisbane and in the long run CIC will host it.
Mr Menanga said exporters can start using both the manual and online system until October 2020 when new coffee season begins where all exporters will use the online version.
Coffee processing and exporting firms from all Arabica coffee provinces in the Highlands attended the online introductory session held at the Goroka Phoenix Hotel/Steakhouse. Some firms that attended were Colbran CoffeeLands Ltd, New Guinea Highlands Coffee Export, Coffee Connections, WR Carpenters, Rilke Coffee, Kongo Coffee, Kosem Coffee Ltd and Wapenamanda Coffee Factory.
Exporters were impressed and very positive of this milestone achievement for the industry with remarks or phrases like “highly commented” and “long overdue”.
David Rumbarumba of Kongo Coffee Ltd, a participant said “it makes our job easier for export processes but it is up for all of us to make it work”.
Mark Munnul of Kosem Coffee Ltd in Jiwaka Province asked if CIC can forge an understanding with national carrier Air Niugini to support the online system to include freighting of coffee for micro lots or specialty markets.
Otherwise Mr Munnul was impressed with this new service saying there are many forms to fill like shipping documents and this online system will help speed up the process.
Jemmima Colbran and Esther Vialeahy of Colbran CoffeeLands in the beautiful Aiyura Valley of Eastern Highlands congratulated CIC and PPAP coffee for introducing this long overdue service.
“Overall well done. With the new system, it will make it more efficient for us,” they said.

Approved for release:

Mr Potaisa Hombunaka
PROJECT MANAGER

PLANNING MINISTER SETS PRIORITIES FOR WORLD BANK FUNDING

PORT MORESBY, MONDAY 24th JUNE 2019 — The Minister for National Planning, Hon Richard Maru, has met with the World Bank and given them clear directions on our priorities for concessional funding in line with our Medium Term Development Plan (MTDP) III priorities last Friday.

This follows a visit to Minister Maru by the World Bank Country Director of the Pacific Islands and PNG, Michel Kerf, where they discussed the Country Partnership Framework.

The Minister gave the World Bank six critical areas for long term focus to concentrate funding support in; Major Road Infrastructure, Youth Employment and Skills Training, Budget Support, Agriculture Development, Health and District Town Water Supply.

1) For the Major Road Infrastructure, the Government of PNG would like the World Bank to:
i. Concentrate on the design and building of Phase 1 of the Momase International Highway between Watarais in Markham to Madang;

ii. Commence the feasibility study and work on funding for the Gulf to Southern Highlands Highway upgrade and sealing program. After our Government completes the unsealed road using funding from the Infrastructure Tax Credit Scheme this year.

2) For Youth Employment and Skills Training, GoPNG wants WB to concentrate on upgrading and expending our current technical colleges and to assist us fund more technical colleges and polytechnic institutions.

3) World Bank to assist our Government with a long term concessional funding for direct Budget Support.

4) On Agriculture Development, concentrate on Phase II of the Productive Partnerships in Agriculture Project (PPAP). Minister Maru said the PNG Government is very happy with the positive impact of Phase I of the last 5 years and wants the Project to continue. In Phase II of the PAPP Projects, the Minister wants the focus to be on building high quality “commodity roads.” The Government wants a program to complete major commodity roads to provide access for coffee, cocoa and vanilla farmers and fresh food farmers to take their produce to market in the highlands and coastal provinces. An example will be the Kainantu to Obura Wanenara road and the Banz to Jimmy road.

5) In Health, concentrate on health infrastructure requirements and ensure that Provincial Health Authorities are well capacitated and can deliver frontline service delivery.

6) To focus on long term concessional funding for District Town Water Supply Projects. We have 89 District Headquarters in the country and want each District Towns to have a safe and functional water and sanitation system under a country-wide program.

The Minister thanked the World Bank for its continued support to Papua New Guinea and how it is working closely with the Government of PNG in ensuring that we deliver a strong portfolio to PNG in the key areas outlined.

Ends… ///

Work Begins On Maprik Coffee Factory Site

The effort to relocate the coffee processing mill from Wewak to Maprik in East Sepik Province has started.

Early this month agri-firm Weni and Mandol Investment Ltd started erecting the foundation of a warehouse for the green bean processing factory at Banialla, Ami junction, in the Abiges-Mamblep LLG.

This is an initiative of Anton Areka, managing director of Weni and Mandol Investment Ltd, a lead partner of Coffee Industry Corporation’s productive partnerships in agriculture project (CIC-PPAP).

“I want the warehouse to be completed soon to transport coffee processing machines to Maprik before end of this year,” said Mr Areka.

A ribbon cutting and ground breaking ceremony took place at the factory site in June 2018, witnessed by provincial administrator Dr Clement Malau and Industry Coordination Committee members of PPAP after their meeting in Wewak.

The main beneficiaries will be rural growers of Maprik, Wosera-Gawi, Ambunti-Drekikir, Yangoru-Saussia, Angoram in East Sepik plus Nuku and Lumi in West Sepik.

The decision to relocate to Maprik was to provide market access to growers in the hinterland also known as Sepik central. Growers from these remote districts will take part in integrated farming with cocoa, vanilla and other agriculture activities to avoid dependence on a single cash crop.

According to CIC, the annual return or income from coffee in Sepik Central alone was estimated at half a million kina.

The factory will increase coffee production and income to support internal revenue generation and economic growth for the province.

The manager of CIC-PPAP Mr Potaisa Hombunaka therefore urges the provincial government and its administration to support setting up of the factory in Maprik.

“I ask the administrators of East Sepik Province and Maprik district to support Weni and Mandol Investment in this effort.

“This green bean processing factory is the key to revive coffee production in the province,” said Mr Hombunaka.

Weni and Mandol Investment is reviving rundown coffee gardens in Sepik Central with 839 growers covering 419 hectares in partnership with CIC-PPAP.

The coffee rehabilitation effort is financed by World Bank and IFAD or International Fund for Agricultural Development under a loan arrangement with PNG government.

On Friday 22 March, the lead partner paid a total of K150,000 in cash to 36 cluster groups (including three Arabicas) who participated under its first group marketing initiative through Kundu Coffee firm based in Lae.

“This is the first and we’re happy. We went through some agents and pay them fees but with the new factory we should be okay,” said a content chairman of Wasambu Coffee Cooperative Pastor James Ali.

The lead partner Mr Areka explained to the farmers that the payment was from one of two containers exported overseas.

Second payout will follow once payment is received.

The Coffee Industry Corporation will consider and issue export license to Weni and Mandol Investment Ltd once the Maprik factory is operational.

The CIC-PPAP field technical officer Steven Tevo said many coffee cooperative groups who took part in the group marketing were previously operating under CIC.

“Their coffee production was around one container until PPAP coffee took them onboard under the coffee rehabilitation program.

The production doubled due to the massive awareness and rehabilitation under the program.
“We must give credit to Joshua Gafie Malaiwe.

“Plus other CIC officers who have been doing the hard yards until PPAP coffee work began two and half years ago. Some of this groups were looked after by him and the high breed Omuru 1 clone coffee were planted during his term,” said Mr Tevo.

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Work begins on Maprik coffee factory site

The Queen Bee Of Business In Karimui

Anyone involved in business or other economic activities in the remote and fertile Karimui area of Chimbu Province knows her.

She is their ‘queen bee’ and she is always there for coffee farmers, vegetable farmers and other business people who would like to transport their goods in and out of Karimui by air.

She is none other than the ward member Helen Genai, who has made it her duty to be the middle person between the small airlines that operate between Karimui and Goroka or Kundiawa.

The Karimui area is one of the very fertile lands in the country but its inaccessibility by road as seen farmers many cash crops go to waste, because they are not brought to the markets.

But over the last 20 years, ward member Helen Genai or the Karimui ‘Queen Bee’ has played a very important role among the lives of the farmers, especially coffee and peanut farmers and small business people.

Ms Genai mobilises all the farmers and businesses that have goods to transport by air and makes arrangements with either MAF of the Adventist Aviation planes to transport their goods to and from Karimui.

Through her role, the woman councilor for 15 years has benefited many farmers, small businesses and even bringing basic government services into the area.

During an exclusive interview with the Queen Bee recently in Goroka, she told the Post-Courier of a coffee green bean processing machine which she has bought for the coffee farmers in Karimui.

“The Coffee Industries Corporation has assisted in purchasing the coffee green bean processing machine for the coffee farmers in Karimui,”Ms Genai said.

The green bean machine was airlifted to Karimui last month and it will be officially launched before the coffee farmers of Karamui process their coffee into green beans transported to the markets.

Cr Genai also works with the agriculture department, the Catholic Church and Coffee Industry Corporation for the benefit of the Karimui people.

“The Agriculture department has tried out cocoa farming, vanilla and rice in Karimui which are all growing very well,” Ms Genai said.

She thanks CIC for subsidising the freight cost for coffee farmers in Karimui over the years and also extended the gratitude to the Agriculture department and the local MPs for also subsidising the air freight cost for the farmers and small businesses operating in Karimui.

She said Karimui coffee came third in the last coffee cupping in the country and this included Marawaka coffee.

Ms Genai urged the government to get the organic coffee from the rural areas into the outside markets.

Ms Genai urged the Chimbu provincial government to prioritise Karimui as its resource centre to generate income for the province through agriculture, because the Karimui people are now moving in and out from Goroka.

Karimui is a local level government in the Salt Nomane Karimui district of Chimbu Province and is only accessible by air.

However, if you decide to walk, then you will have to cross the mighty Waghi River on an inflated vehicle tube or raft, then walk to Gumine district in Simbu or Ungai district in the Eastern Highlands Province to get into Goroka and Kundiawa, or to go to Karimui.

Most of the services in Karimui are flown in, while cash crops like coffee, peanut, cocoa and other vegetable are flown out from Karimui using either MAF  or the Adventist Aviation planes.

Individual farmers could not afford to transport his or her cash crops by plane to the outside market because its unprofitable.

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The Queen Bee of business in Karimui

New Plan To Foster Cash Crops, Says Allan

The Ministry and Department of Agriculture and Livestock and agricultural commodity boards and agencies are working to develop, expand, promote and support a wide range of crops and livestock.
These crops include coffee, cocoa, copra, oil palm, rubber, spice crops and fresh produce.
The Minister for Agriculture and Livestock Benny Allan (pictured) said the National Agriculture Sector Plan is aimed at strengthening the current efforts by the lead agency and agricultural sectoral boards and agencies in developing the sector with emphasis on producing quality products, especially in coffee, cocoa and coconuts.
“PNG’s coffee and cocoa are recognised internationally and its top quality must be maintained as well as to promote the products to consumers worldwide,’’ Mr Allan said.
PNG coffee has attracted consumers worldwide whilst cocoa is gaining popularity in the European markets.
“The sector plan should continue to address issues and challenges affecting production especially improvement of quality, and there is need to conduct more awareness and marketing.”
He said the NASP should address one common problem faced by fresh fruit and vegetable farmers in the region which was the transportation of fresh produce, cool room storage facilities, and marketing facilities.
He hoped the department, Fresh Produce Development Agency and private sector can work together to make some improvements in this subsector.
Mr Allan said rice is a staple diet for most people and every effort must be made to promote smallholder and commercial rice production in the rural areas.
“The focus of the plan will be to encourage more local production to reduce rice imports which is about K600 million,’’ he said.
“We have good climate, soil, weather and hard working people, we must grow our own rice to replace imports.”
He said the government is partnering with companies like Trukai Industries Ltd to invest in rice projects in Markham Valley and Baiyer in Western Highlands so more of these arrangements must continue.
Mr Allan said more effort is needed to revive the livestock industry and the plan will address the decline and look at strategies to improve the raising of cattle and grazing systems, poultry, pigs, apiculture, aquaculture, small animals and others.
He said land must be made available to enable smallholder farmers to raise cattle and supply to others to boost cattle breeding and distribution throughout the country.

Source:

New plan to foster cash crops, says Allan

Israeli firm keen to deliver multi-million coffee project

The Innovative Agro Industry Limited and several partners will be involved in a multi-million Kina coffee project soon to be rolled out in Hela Province.

A team from IAI was recently in Goroka, Eastern Highlands Province on Tuesday October 23 to meet with officials from the Coffee Industry Corporation (CIC) to discuss the imminent project.

The company backed by Israel’s LR Group was led by Chief Executive Officer Mr Lior Crystal and a high powered team of scientists, extensionists, agronomists and an economist.
They were welcomed by Chief Executive Officer of CIC Charles Dambui and met with the senior management team.

The group was able to visit a CIC’s Productive Partnership in Agriculture Project (CIC-PPAP) Lead Partner Hataville Coffee Ltd at Asaro Valley implementing some coffee rehabilitation work in the area.

They also travelled to Ipagu Plantation to see first-hand a wet and dry coffee processing factory.

Mr Crystal said the company had already signed a Memorandum of Understanding (MoU) with Exxon Mobil, Mineral Resources Development Company (MRDC) and the district and provincial governments of Hela to formalise plans for this massive coffee development project.

He said it will be a large scale project looking at planting 15 million coffee trees. He added that it was a timely visit to Goroka to meet with the CIC management to exchange and share ideas on the current status of the industry and how this project aims to address some of the issues.

This project is expected to create employment for 5,000 people in Hela. Also, the project anticipates to address coffee development and marketing issues starting in Hela and to roll out to other coffee growing provinces.

“We came into PNG in late 2011 realising mainly the potential in agriculture and we have started projects in Port Moresby (9 mile farm), poultry and vegetable projects in Hela and another vegetable project in Sirungki, Enga Province,” Mr Crystal said.

He said to date IAI has invested close to K80 million in PNG focusing on agricultural projects with focus on addressing logistical issues, one of the main constraints faced by farmers in rural PNG.

CIC Chief Executive Officer Charles Dambui said CIC is open to contribute technical advice primarily on market accessibility which is very important in the investment.

Mr Dambui outlined some of the challenges which include climate change, poor rural infrastructures, law and order problems, lack of credit facilities, socioeconomic and cultural implications among others.

Project Manager of CIC-PPAP Potaisa Hombunaka said the involvement of Israeli experts in the coffee industry will contribute meaningfully to the growth of an important sector in the medium to long term.

He added that it is envisaged that after 5 -6 years, they will produce and export minimum of 200,000 green bean bags annually. At an average price of K300 per bag this would bring in K60 million per year in foreign exchange

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Israeli firm keen to deliver multi-million coffee project

Obura-Wonenara Dominates Coffee Competition

Obura-Wonenara Coffee Cooperative (Habina Resource Centre-PPAP) is the overall winner for the 2018 PNG Coffee Cupping Competition.
This was announced at the 2018 PNG coffee cupping competition closing ceremony on Friday September 14, 2018 at the Holiday Inn Hotel in Port Moresby.
The ceremony was witnessed by government dignitaries, sponsors, farmers and industry stakeholders.
The weeklong coffee event commenced on September 10 and ended on the 14th last week.
Sixty seven coffee samples were assessed by five national judges and seven overseas Q-graders over a period of 4 days.
The judges carefully examined the coffee samples, taking into account various aspects of taste and quality based on the Specialty Coffee Association of America (SCAE) cupping protocol to give a score out of 100 points.
For this year’s top 10 awards, Habina Resource Centre-PPAP scored the highest with 85.45 points followed by Kamora of Obura Wonenara, Eastern Highlands (85.41 points), Untoa Kosa of Obura Wonenara, Eastern Highlands (85.32 points), Pandai of Enga (85.27 points), Tibunofi of Kainantu, Eastern Highlands (85.23), Obura Wonenara Coffee Cooperative Society (Bara Buna Resource Centre-PPAP) with 85.16 points, Besser block holder of Obura Wonenara, Eastern Highlands (85.01 points), Rikarika of Henganofi, Eastern Highlands with 84.93, Roots # 1 (Monpi) of Okapa, Eastern Highlands with 84.91, and Timil (Kosem PPAP Minz) of Jiwaka with 84.73 points.
Other 10 coffee groups who scored within the range of 84 and 83 points were also recognized in this year’s awards.
The three category awards given were the Golden Cup Award, Consistent Cup Award, and Aroma Cup Award.
Groups that scored within the 85 range received the Golden Cup Award, followed by groups within the 84 range given the Consistent Cup Award and Aroma Cup Award was awarded to groups that scored within the 83 range.
CIC chief executive officer Charles Dambui said the Golden Cup awardees will each receive K20,000, while the Consistent Cup Awardees will each receive K15, 000 and Aroma Cup Awardees will each receive K5,000 each, all tied to quality improvement projects.

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Obura-Wonenara dominate coffee comp