Farming eyed as economic driver

By Lemach Lavari
The agriculture sector and Apec will be short-term drivers of the economy, according to a report by the Australia and New Zealand (ANZ) Banking Group (ANZ).
The report said coffee production was expected to increase above the yield of 2016 following last year’s unfavourable climate-affected output.
According to PNG Coffee Industry Corporation Industry Ltd, the 2016 production was 1.13 million bags.
The food, chemical and beauty industry’s growing demand for lauric acid, which is sourced from copra oil, would provide a boost to copra and copra oil production.
The report said despite having abundant fertile land and good climate conditions for a number of traded commodities, the discouraging issue of land ownership had often affected the sector.
The model of subsistent farming severely limited PNG’s ability to commercialise its produce.
As a result, PNG continued to import a wide variety of food.
Further support for the sector, through infrastructure, may harness PNG’s agricultural potential.
Similarly, there is scope for higher output in the fisheries and forestry sub-industries.
All in all, agriculture, forestry and fisheries industries can play an important role in offsetting any fall in mining investment.
The report said hosting of Apec meetings and construction of related infrastructure, plus reconstruction and rehabilitation works on roads and schools following the earthquake, would boost growth this year.
Apec would also benefit the information and communications sector, accommodation and food services, administrative and support services.
There would be an associated lift in spending on security, and the transport and storage sector through air transport and port services.
Port Moresby’s Fairfax Harbour is undergoing significant work to berth cruise ships during the November Apec meeting.
In sum, the report forecasts PNG’s gross domestic product (GDP) will grow by 1.9 per cent this year and 2.1 per cent in 2019.
This is well below the 8 per cent PNG achieved during the PNG LNG construction phase.