What the World Bank says about PNG’s PPAP

THE majority of Papua New Guinea (PNG)’s population lives in rural areas, largely dependent on agriculture for their livelihoods.
Coffee and cocoa are the main cash crops, with half of the country’s total workforce involved in their production, processing and sale.
Despite its importance, the quality and productivity of these crops has been declining. The PPAP aims to improve the livelihoods of smallholder cocoa and coffee producers, and promote rural development and poverty reduction.

Challenge
About 80% of Papua New Guineans live in rural areas with agriculture accounting for about a third of the country’s Gross Domestic Product (GDP).
Coffee production is the backbone of the rural economy and accounts for 30% of the total labor force. About 90% of national exports originate in the Highlands (Western Highlands, Jiwaka, Eastern Highlands and Chimbu.
However, productivity is low, largely due to a lack of replanting, limited incentives for smallholder farmers, and poor access to markets.
The cocoa industry has been experiencing similar issues in addition to the threat posed by the cocoa pod borer, a crop disease where larvae tunnel into fresh cocoa pods and decimate cocoa harvests.

Solution
The PPAP supports the creation of partnerships between farmers and Non-Governmental Organisations (NGOs), farmer group cooperatives and local businesses.
The partnerships provide smallholder farmers with knowledge in crops and pest management, while improving their access to relevant services and opportunities that bring higher prices for their produce.
The project is also helping farmers to manage the impact of cocoa pod borer on production.
The project will support improved quality in the coffee and cocoa industries and promote the adoption of certified sustainability practices (such as organic, fair trade, Rainforest Alliance, Utz or quality certification schemes).
Under the productive partnerships component, funding will support partnerships in the private sector and civil society.

Partners
Additional co-financing for the project has been provided by the International Fund for Agricultural Development, the European Union, the PNG Government and the private sector.