Presentation from the WCCA 2011 conference in Brisbane, Australia.

1. Using value chain systems modelling to
develop more sustainable vegetable
marketing systems in a Developing
Countries: a case study in PNG
Colin Birch
On behalf of
L. Bonney, G. Palaniappan, B. Chambers, L.
Sparrow, M. Boersma, R. Doyle and C. Birch
26th September 2011
World Congress on Conservation Agriculture, Brisbane
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2. The Project context
Paper arises from project
Increasing vegetable production in
Central Province, Papua New Guinea
to supply Port Moresby Markets
(in partnership with)
National Agricultural Research Institute
Fresh Produce Development Agency
Central Province Administration
Pacific Adventist University
Greenfresh Limited
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3. Location of the Project
Limited to Central Province of PNG, has coastal
lowlands and mid altitude areas eg Tapini
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4. The Papua New Guinea Context
Developing Country, economy in transition
Agriculture approx 20% of GDP, 17 % of exports
Subsistence agriculture still predominant
Family needs met from own
production, no need for regular sales
 Supply chains operate with spot forms
of governance
 Few incentives to improve supply or quality
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5. The Papua New Guinea Context
Smallholders disempowered and in poverty
Shortfall of vegetable supply to Port Moresby
– possibly 80 000 t
Mineral and Gas resources boom exacerbating
supply shortfall
Central province has suitable land resources to
increase production near Port Moresby
Need sustainable models of production compatible with complex
socio-cultural norms and infrastructure constraints
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6. Research Rationale
Marketing supply chains operate as systems
International R&D agencies use value chain
analysis to address ‘wicked problems’
Value chain management means collaboration
for efficiency and adding value for participants
Need to find ways to engage smallholders,
women and youth in production and marketing
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7. Research Methodology
 Methodology
 An initial scoping study using Rapid Value Chain Analysis
Multidisciplinary team
Seek to understand priority constraints in production and
marketing, identify focal vegetables and participating
communities
Gather data on material and communication flows,
relationships
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8. Data Analysis
 Data Analysis
 Thematic and content analysis to identify
potential ‘chain improvements’
Iterative process – validated with chain
participants
Identify positives in the host (PNG) culture
and build on them
Next step
New collaborative model in first iteration of
trials.
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9. Results and Discussion -
Highly variable supply and quality
 Current supplies inadequate and inconsistent
 Due to socio-cultural and infrastructure
constraints
 Quality variable
 Due to production system and post-harvest
constraints
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10. Results and Discussion - Poor
Marketing Infrastructure
 Road, telecommunications and finance
systems inadequate
 Telecommunications patchy,
Internet in major centres only
 No national interconnected roads
 Roads poor and poorly maintained
 Banking system confined to major centres
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11. Lack of Economies of Scale and
Poor Coordination in Marketing
Small lots – 50kg or so carried by people
on PMVs (scale issue)
‘Hawk’ produce for a price (scale issue)
Prices highly variable – quantity, quality,
post harvest deterioration
(coordination issue)
High costs, time loss, harassment,
intimidation (coordination issue)
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12. Poor Chain Relationships
Most relationships transactional, short
term
Opportunistic and exploitive behaviour
- chain relationships compromised
Women report harassment and
exploitation
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13. A preferred Model
 More sustainable production and coordinated
marketing
 Delivering more and better
quality produce
 Implement using contracts
with wholesaler or end user
 Involve ATV and cool box, then larger
refrigerated vehicle to Port Moresby, back-
loading of inputs
 Use trading account
 Some cooperatives establish ‘trading stores’ - ?
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14. Conclusions
There is potential to improve vegetable
supply and quality
 There are challenges at all stages of the
chain
But we perceive an entrepreneurial spirit
and willingness to ‘give it a go’
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15. Acknowledgements
The financial support of ACIAR is
acknowledged.
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