Dept drafting new export policy

The National Business

THE government policy on the single exporter concept for commodities such as cocoa and coffee will be completed next year, an official says.
Agriculture and Livestock department acting secretary Stephen Mombi said the policy would ensure that world prices of commodities was felt by farmers.
“We are testing the waters right now,” he said.
Mombi listed four important things:

  • DECENTRALISATION process – government functions in Waigani decentralised to provinces;
  • ESTABLISHMENT of commodity boards;
  • SETTING up of the provincial and local level governments in 1995 and 1996; and,
  • THE District Development Act.

“The people decided that the commodity board be established, the coffee board, cocoa board and others,” he said.
“They used their own laws legislated by Parliament.
“They do not report to the (department) secretary when corporatisation took place in early 1980s, early 90s.”
He said downstream processing and value-adding were yet to be reached. “We are not there yet. You have Paradise Foods and Queen Emma chocolate who are into that space now,” Mombi said.
“The marketing they let it through to Paradise Foods to take control.
“So when people talk about the transferring of prices, it is not fair to the farmers.
“We have come to realise that after 46 years, we have to do something.
“It is why the Agriculture and Livestock Minister is saying: Let us establish a national company for exporting and importing owned by the Government.
“We need to have that company established. We are going through the discussions.
“The policy papers have been written to go to Cabinet next year.
“I know we will have opposition from many companies, some of the bigger players.
“They won’t be happy. But let’s test the waters and see how we go.”