PHAMA Plus aims to improve economic growth and rural livelihoods in Papua New Guinea. Key achievements include containing African swine fever, establishing HACCP systems for partners, and developing the coffee, cocoa, and coconut industries. Challenges in the operating environment include infrastructure issues, a lack of coordination, and high transport costs both domestically and for exports. Opportunities exist to improve supply chain communications, microlot exports, and the export of products like honey, taro, capsicum, fish, and spices.

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

3. What is PHAMA Plus?

4. The purpose of PHAMA Plus is to contribute to improved economic growth and
improved rural livelihoods for Pacific peoples.

5. Key Achievements of PHAMA Plus
in PNG

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

10. The operating environment in
PNG

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

13. Challenges/opportunities in cash
crop value-chains in PNG

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

17. Export Opportunities

18. Export Opportunities
• Honey – HACCP, import compliance and economic feasibility (private sector decision)
• Frozen Taro – export pathway development, import compliance, economic feasibility (private
sector decision) and HACCP
• Capsicum spp (from pest free production area – R&D, DAFF and private sector involvement,
NAQIA technical input and ISPM application) – export pathway development
• Fish/Prawns – PCR testing for disease freedom, PCR diagnostic capacity, HACCP, import
compliance
• Ginger (for processing) – export pathway development (grower co-op, linkage with potential
buyer/importer, economic feasibility)
• Spices – production capacity, buyer/importer linkage and economic feasibility

19. Thank You!