Rubber earns K12.5m

Business, Normal

The National, Thursday 6th June 2013


WESTERN generated K12.5 million in revenue last year from rubber exports alone, the PNG Sustainable Development (PNGSDP) said.

Agriculture programme manager Potaisa Hombunaka said during the PNGSDP open day in Port Moresby on Monday the revenue of K12.518 million last year was below the 2011 revenue.

Rubber export take in 2011 was K12.7 million.

Hombunaka said: “The slight drop in revenue was due to low world market price and the 30% appreciation of kina last year or the phenomena of Dutch Disease.” 

 “The export earning is estimated at more than K35 million from export of 6,000 tonnes”.

He said: “The PNGSDP will grow the rubber industry in Western to plant more than 10,000ha of rubber farms beyond 2022.  “Hence, PNGSDP’s current funding commitment to the rubber programme is K43 million. 

“PNGSDP has already spent K15 million to plant 2,260ha by its major development partner North Fly Rubber Ltd (NFRL) in Lake Murray involving 1,505 lake families. 

“The balance of the funds will be used for the next 10 years to:

  • Establish buying depots in Lake Murray, Balimo and Suki (this should be delivered by end of this year);
  • Plant 2,800ha of clonal rubber beginning January 2012 and conclude in 2018.

That is 1,070ha in Agrim (Kiunga, North Fly district); 1,148ha in Balimo, South Fly district and 582ha in Suki, South Fly district; and

  • Fund the capacity of NFRL, both in terms of infrastructure and human resources to roll out this project.

Meanwhile, Western has exported 1,976 tonnes ofcrude rubber last year, up 1,331 tonnes, or 48%, from previous year.