Barker: Focus on constraints

On the backdrop of the Government’s vision to make agriculture the driving force behind PNG’s economy, The National’s business reporter Clarissa Moi writes about a think thank’s view of the sector.

Reviewing the agriculture sector in the country requires focusing on major constraints in the sector such as transport accessibility, competition, law and order and skills development, especially amongst the young, Institute of National Affairs executive director Paul Barker said.
Speaking during a PNG Australia Alumni Association meeting in Port Moresby recently, Barker said recognising the constraints and opportunities required both professional capacity to utilise, update and undertake land use assessments, and being aware of market conditions and opportunities.
He said it required engaging with farmers to assist them to be able to see their situation and help them unleash their skills and energy.
“Government has for years been too far removed, trying to direct farmers from Waigani, with big and often inappropriate projects, or major production targets, without recognition of the challenges faced on the ground, and striking deals sometimes over customary land with outside parties without any local consent,” he said.
“Basic issues for farmers are the same as for other businesses, except they have more challenges, such as climate and weather, pests and diseases and other variables.
“But fundamentally, it’s down to whether the investment of time and effort (plus land and other capital) is worthwhile or not, whether it’s as a large farm or a smallholding, or micro-enterprise.
“That is farmers, like others, have a choice of crop or livestock for their land, leaving it fallow, intensifying and diversifying, depending upon whether there is considered adequate returns on time and effort: this will be dependent upon prices (international/local – exchange rates, quality, value added, yield, knowledge and available skills) and costs of production and risk based upon transport and processing costs, risks of theft and costs of security, risks of storm or drought, or pests and disease, and in some cases power and other utilities.
“Other issues relate to the image of agriculture as an activity that people want to participate in and skills available – especially amongst the young – and the role of schools or technical vocational education training (Tvet) and parents in helping foster interest, support skill development on school farms and professionals, including researchers, in universities and institutes. It also relates to the options available.
“For the time being, there is a major population growth, a very small formal sector (including in agriculture) and few job opportunities, especially over the past several years.
“Agriculture can provide opportunities for those with land, that’s of good quality and accessible to markets, but families and pressure have grown and opportunities from that land have been constrained in many parts of the country, so it will require new technology and intensification, to provide food and cash crops to provide for growing needs.

“Access to land and resources – land suitability, much unsuitable or has very low fertility, and would require major and costly inputs to be productive; so suitable activities for this land must be identified and not be unrealistic; other more fertile places have seen fertility decline, so again new or adjusted crop combinations and farming systems are required, requiring access to knowledge and local research by farmers and researchers genuinely working for the farmers’ identified needs.
“Population growth and density (including blocks – originally with family people on a six hectare family block, but now with up to 60 or more).
“Inter-generational issues (young people need to be given access to land by their older generations, and encouraged to farm and innovate rather than the elderly hanging on rather jealously to their aging cash crops with declining yields).
“In the formal sector for example the oil palm block market, there needs to be more efficient transfer of oil palm blocks, to enable them all to be utilised and opportunities spread.
“PNG farmers have 10,000 or so years of agricultural production experience, researching and adapting to the local soils and conditions, skills development is needed in production, but often the major constraint is poor access and other issues related to post harvest treatment, storage, processing and marketing rather than production.
“Just see all the beautiful food crops selling on the roadside in the Highlands, Morobe or even locally in Goilala, and the lack of fresh produce in National Capital District.
“Access to finance and other information and support services remains a constraint, with opportunities for E-commerce and the use of mobile wallets for safer transactions, as widely utilised in say East Africa, but barely used in PNG.
“Innovation and technology change: practical research, trials, accessible planting material, handbooks, farmer engagement and training.
“This was better in the 1970s and 1980s, with much more active farmer training facilities and extension services, books (including practical farmer volumes, such as liklik buk) back then, but largely ignored since then and practical public/private sector partnerships needed, including with development partners, whether through agro-nucleus enterprise models as with oil palm, but also applicable for small activities, needing less land, such as spices, essential oils, horticulture, inter-cropping, including opportunities to make an income earlier and consistently, rather than just awaiting for a single cash crop.
“Production and marketing support through agro-nucleus enterprises and partnerships – creating economies of scale, skills transfer among others.”
Barker, therefore, concluded that revival of the agriculture sector in the country required:

• Major focus on addressing the constraints (from transport access and competition, to law and order and skills development, especially amongst the young, and provision of technical knowledge, from land use, risks and pest control; with Government stop trying the dictate or run agri-business which it has demonstrated it cannot; but also supporting innovation, in partnership with the private sector;
• Ensuring sector institutions are professional and accountable with boards correctly appointed, and use of public funds, for relevant research, nurseries and other facilities; so that requires training and securing skilled agriculture professionals again for institutions, education service, agriculture needs to go higher technologically, to compete, to produce and to inspire young people to be involved;
• Favourable opportunities for private sector engagements including resource companies, where supporting out-growers, (superannuation funds in agriculture and infrastructure, but requiring lower costs/risks);
• Productive in agriculture project model projects by bringing together some finance and production and marketing skills through private partnerships, but including access to credit in future, not just grants, to ensure sustainability and replicability and innovation support with co-financing;
• Climate change and risk mitigation;
• A further key role in keeping the macro-economic conditions suitable, including keeping an exchange rate that is attractive; PNG cannot determine global market prices, but it can help ensure that the kina is retained at a rate that ensures that it is worthwhile for farmers to produce export crops denominated in US dollars, or to compete against imported produce (this may require use of the planned sovereign wealth fund, if and when major resource projects are developed and proceeds finally are remitted back to PNG);
• Transport including basic access is a major requirement for producers including all-weather access roads and links to main centres and port, but also restoring coastal shipping services, using practical models, as we used with RRA for rural airstrips, to keep costs down, but restore affordable coastal shipping;
• Genuine sector intelligence (land use, economics, etc). Including to avoid the white elephant projects masterminded remotely in offices, or with the “paper farmers”;
• Focus on needs, population planning, avoid resettlement, remembering that the local population is also growing and need their own land;
• Communication and financial inclusion – new technology;
• Having relevant planting material to plant breeding, for pest control, farm management systems, farmer trials and training with civil society organisation (CSO) and community partnerships;
• Education, schools, gardening, skills Tvet, downstream processing and value adding;
• Focus on PNG farmers and needs; and,
• Generally avoid the grand projects – which turn to white elephants, big tax concessions, which are unsustainable or dodges, land fiddling that undermines local communities, small farmers can be more productive if given opportunities and incentives and market outlets.