Cocoa freight subsidy increases economic activity in Garaina

By GLORIA BAUAI
ECONOMIC activity in the Garaina Valley has picked up since the introduction of a cocoa freight subsidy, a local cooperative chairman says.
Garaina Cooperative Society Ltd’s Subi Tokubo said cocoa farms had increased and, in turn, stimulated other economic activities in both the formal and informal sector.
“In the past, goods in a local canteen could remain on the shelf for over month, perishable goods in the markets would waste away because there was simply no money to buy them,” he said.
“Only villagers along the Waria River who had the means of transporting cocoa into the urban market had money to spend.”
Tokubo said transport and accommodation were the main costs for business, which saw farmers returning home with less than K500.
Tokubo said the 100 per cent freight subsidy which was introduced by the PNG Cocoa Board in 2017 as a support cocoa farmers in the valley had greatly reduced cost and increased returns.
The valley has since seen the formation of about six cooperatives to date who buy from an increasing number of local cocoa farmers.
“We, as a cooperative, buy wet beans from farmers, ferment and send the dried beans into Lae via aeroplane under this freight programme,” Tokubo said.
“The regional office in Lae receives our beans and sells to the exporter on our behalf and money is deposited directly into our account.”
Cocoa Board regional manager Anton Ningi said the board partnered with North Coast Aviation in 2017 to offer this programme, with the first funding of K35,000 and then K100,000 in 2021.