K2.03 billion agri-park boost for farmers

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FOOD security is generally defined as peoples’ availability and access to food. As long as families are not living in hunger or starvation, they are considered food secure.
The World Food Summit of 1996 defined food security as – “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”.
Food security is relatively high in Papua New Guinea (PNG) because the majority of its rural folk have land to farm.
After all, some 85% of PNG’s 8.4 million populace have depended on the agriculture sector for subsistence for decades.
High-yielding staple crops have been given priority over the years, thus providing stable returns or incomes.
PNG’s Department of Agriculture and Livestock (DAL) listed the major commodities as coffee, cocoa, coconut, oil palm, tea, rubber, spice, livestock, fresh foods (sweet potato, taro, banana) and grains (rice, corn, sorghum).
However, rural farmers remain poor because they are unable to deliver their fresh produce efficiently to markets, no thanks to the country’s poor value chain supply infrastructure.
The lack of proper road links and transport, and refrigeration facilities result in huge losses with plenty of fresh produce going bad by the time it reaches the markets.
The International Federation of Organic Agriculture Movements (IFOAM – Organics International) believes organic agriculture can help achieve food security by:
INCREASING and stabilising yields over the long-term, particularly on marginal lands;
BATTLING poverty through reducing debt and increasing returns on labour invested; and
Providing diversified, healthy and nutritious food for farming families and communities.
IFOAM was founded in 1972 as an international umbrella organization for the organic world, representing 800 affiliates in 117 countries.
And, producing organic food is not a problem. The problem is the deficient value chain supply infrastructure in the country.

Allan … time to export PNG’s agriculture-produce
Agriculture and Livestock Minister Benny Allan says the biggest challenge to farmers and the Fresh Produce Development Agency (FPDA) over the years has been the value chain and market access.
He is hoping that the US$600 million (K2.03 billion) Papua New Guinea-China Integrated Agriculture Park Project, to be located at Korofeigu in Eastern Highlands and Highlands’ Agriculture Training Institute (HATI) in Western Highlands, will alleviate this protracted issue.
It is to be funded under China’s Belt Road Initiative (BRI).
Allan said at the announcement of Daniel Kombuk as Acting-Secretary of his department on April 2: “We need to transform the lives of our people.
“Village people need to have money going into their pockets. The small people, the farmers, are struggling.
“Over many years, the challenge for the agriculture sector and FPDA, has been and is today the value chain and market access.
“You look at a small farmer from East New Britain, a small farmer from Madang or Western Highlands, (desperately struggling and) trying to get his produce to here (Port Moresby).
“The transportation is very difficult. From Goroka, you spend almost K80 to transport a kaukau (sweet potato) bag to here.
“How much will you sell in Port Moresby? If the supply is not enough, if there are not enough farmers there with kaukau, good, he sells for K150.
“If not, he sells for K120 or K100. They also take the risks. All farmers nationwide take risks. What happens when they arrive here? All their produce have gone bad.”
Allan’s vision is that the Chinese agriculture park project will be a “one-stop shop” for farmers.
“You don’t have to look for markets. They (farmers) don’t have to travel. They come straight to this park, sell their produce, any vegetables.
“China is looking for organic food. We grow organic food in the country, as well as our cocoa, copra, coffee, and even livestock.
“They (China) want to buy everything from Papua New Guinea which is organic. They want to buy all our commodities: cocoa, copra, coffee, tomatoes, carrots. This park will provide that market.
“That’s why it is very important for us to deliver this project.
“We are appealing to all stakeholders to work together so that we deliver this project for the good of 85 per cent of our people in rural areas, and whose livelihood depends on agriculture.
“This project is very important and I believe that it will transform the lives of our people, and create wealth for our people.
“They don’t have to come around asking for members (MPs) to pay for school fees (for their children),” he added.
Allan said: “When the Chinese park project takes off, developer China Railway International will set up in other parts of the country, to help farmers get their produce to markets.
“We will export to China, which will bring in foreign exchange. At the moment, it’s mainly one-way trade from China. We are always importing, importing, importing.
“China is not buying anything from us except minerals, mainly nickel from Ramu.
“It’s time we start exporting (agriculture produce) so that we boost our foreign reserves to address the forex problems that we are currently experiencing.”

Kombuk … use K82 million to develop cold storage and warehouse infrastructure facilities for farmers
Acting Agriculture and Livestock Secretary Daniel Kombuk says the FPDA is to take the lead in developing cold storage and warehouse infrastructure facilities to enable farmers to market their produce.
He wants the FPDA to use the K82 million International Fund for Agriculture Development (IFAD) project that was signed last August to improve and enhance the market chain for rural farmers.
Kombuk said the FPDA had also been directed to work with private enterprises to help farmers deliver and market their produce.
“The market value chain is very important and must be seriously looked into,” he said.
“We are calling on FPDA to establish cooler facilities in Mt Hagen, Jiwaka, Chimbu Goroka, Lae and Port Moresby.
“This is very important as farmers will then have access to cooler facilities to maintain quality (and freshness). Of course, we have transport facilities, but if cooler facilities are there, that will help the farmers a lot.
“Our farmers continue to have difficulties in the value chain. I want to know the technicalities involved in setting up cooler facilities in the marketing chain so that we can assist our farmers.
“When this happens, farmers will be very happy, as they will then be able to send their produce to the facilities.”
Kombuk said some private enterprises like NKW, RH Supermarkets, City Pharmacy Ltd, Innovative Agro Industry, mines and others had started buying and transporting fresh produce at their own costs.
“FPDA can work with all those companies to help farmers to develop the industry, FPDA and the Department of Agriculture and Livestock (DAL) should seize every opportunity that comes to help farmers and the private enterprises.
“There are a few businessmen and companies who had taken their own initiatives to work with and help farmers.
“FPDA should buy cooler facilities and help those (private enterprises) who have already taken their initiatives.
Kombuk said farmers should not have to leave their farms to transport their produce to markets, as is the case in PNG, where they travel from the Highlands to Lae and other centres.
“We should now develop a policy along the lines of what has been developed by the Taiwanese government. Their produce should be taken to government warehouses, weighed, and the farmers receive their cheques.
“Farmers are our strength, farmers will inspire this country, and farmers will bring this country forward.
“Let’s not wear out our farmers who harvest their produce, travel to Lae, and because of road conditions and no proper storage facilities, the quality is lost.
“I really want to see FPDA and DAL work with everyone in the value chain, in private enterprises who have taken their own initiative to set up warehouses and cooler facilities.
“We must assist farmers to offload produce from their farms.”
Kombuk says the importance of fresh produce was exemplified during the 2015 drought, when shops ran out of supplies, as former Agriculture and Livestock Minister Tommy Tomscoll imposed a ban on imports.
“That caused chaos in the country. We also unnecessarily put a ban on imports of horticulture produce.
“We have to look at the demand and supply in this country first before imposing such bans, as our farmers are not producing enough.
“There is no consistency in production.”
Kombuk said the lessons of 2015 had been well learnt, and Highlands’ farmers are producing more highly-demanded vegetables like bulb onions, tomatoes and others for big supermarket chains in Port Moresby.
“The challenge is still to develop cold storage and warehouse infrastructure facilities, as well as better roads,” he added.

Worinu … K82 million IFAD project lifeline for FPDA
Fresh Produce Development Agency general-manager Mark Worinu says cold storage and warehouse infrastructure, as well as deteriorating roads, continue to be stumbling issues on Papua New Guinea’s lucrative horticulture industry.
A lifeline for FPDA is on the way with a K82 million IFAD project fund that is aimed at improving and enhancing the market chain for rural farmers.
“You will obviously see at the wharves, bus stops and key strategic locations, farmers marketing their produce. They are really struggling to maintain the quality of their produce.
“It’s all along the value chain from say, Mt Hagen to Lae and all the way to Port Moresby. The issue of poor supply chain infrastructure needs to be fixed.
“The main facilities are obviously the cold storage, warehouses and also packaging, sorting, grading and transport systems,” he added.
PNG’s horticulture industry, although predominantly domestic, is the biggest in agriculture in terms of cash earnings, especially for farmers.
Road conditions, particularly those of the Highlands Highway, have worsened over the years to the detriment of farmers.
“Produce from the Highlands to the coastal areas loses its quality before it ends up in markets like Port Moresby. We are struggling to secure good spots in strategic locations to build cold storage facilities.
“Like, in Lae now, we have talked to DAL and are trying to secure land to set up cold storage and warehouse facilities. In Goroka, we are looking to create a space for farmers to market their produce and to maintain quality or freshness. “Grading, packaging, all of these are pertinent issues. Transport system is in a very bad condition, particularly the roads, especially during the rainy season,” he added.
“Those issues have stressed farmers and the supply of fresh produce in PNG is severely compromised. Keeping perishable produce fresh in supply to markets is thus an uphill battle,” Worinu said.
He lamented that the government needed to support the agency’s programmes and projects to invest in strategic locations for the setting up of warehouse and cold storage facilities for farmers.
“This is will enable us to efficiently store all the produce from different farms for delivery to markets, thereby generating more income and revenue.
“We have been struggling to improve the food chain system in the country. This is why the IFAD project is a very important for the horticulture industry.
“In short, we support the farmers by improving the supply chain infrastructure and the horticulture industry, thus transforming the sector into a significant income and revenue earner for the people and country,” he added.
Worinu said there were provisions in the IFAD project to support farmers who were more organised in their production and supply to have their produced stored in proper facilities.
“It won’t be a generic approach but more tailored to support organised farm business groups, and people who are quite experienced and who have been in farming for quite some time.
“Our agency is in the midst of setting up the project management for the IFAD project which was launched a couple of months ago. We must also adhere strictly to the requirements of the United Nations and the PNG government.
“It’s taking a fair bit of time, but eventually we will get there. We have already done most of the work. Implementation will be as soon as possible.
“We have identified some very experienced people to be in the project management unit. We’ve done the interviews, we’ve selected the people.
“We are now in the process of making offers and getting them assembled to run the project,” he added.