Article compiled By Albertis Photography.
Coffee is one of the most important cash crops in Papua New Guinea (PNG), with export revenues consistently topping US$100 million per annum.
Total production for 2016 was nearly 1.2 million 60-kg bags (70,260 tonnes). Globally, PNG ranked 18th in the world for coffee production for 2016/2017 (USDA and FAS 2017).
Most of the coffee produced in PNG is the Arabica species, the main Arabica coffee – growing provinces being, in descending order of importance, Eastern Highlands, Jiwaka, Western Highlands, Morobe, Simbu, East Sepik, Southern Highlands, Enga, Madang, Oro, Sandaun (formerly West Sepik), Milne Bay, Central and Gulf (CIC 2016:3).
Importantly, coffee is the mainstay of the local economy, especially in the main Arabica-growing provinces of the highlands. In the period 1990–1995 Arabica provided 33 per cent of all income from agricultural activities — more cash income to rural villagers than any other commodity.
This situation is likely to hold true today, although fresh food production has increased greatly since that data were recorded. The coffee sector in PNG mainly comprises smallholders (approximately 400,000) and it is estimated that 3 million people in the country are dependent on coffee income.
There are two types of coffees cultivated in PNG.
Arabica coffee, the most important, is usually grown between 700 m and 2050 m altitude, but occasionally as low as 100 m and as high as 2400 m. Robusta coffee, considerably less important, is usually grown between sea level and 550 m. Both types of coffee are grown in environments where average rainfall is 1700–5000 mm per year.
The production of Arabica coffee is highly seasonal. The main season varies a little between years and between locations, but is generally in the period May to September and particularly in June, July and August. A study of Robusta coffee found no definite harvesting season in the Gazelle Peninsula area, East New Britain Province. However, in the Milne Bay area further from the equator, the main harvest occurs between May and August with the peak in June–July.
Coffee was first introduced to PNG in 1873 and was growing in the Rabaul Botanical Garden by 1890.
Between about 1900 and 1940, several plantations were established in Central Province and around Wau in Morobe Province and by villagers in the Sangara area of Oro Province.
SANTOS will send a negative message on PNG if it is not willing to be listed on the PNG Stock Exchange (PNGX) after the proposed merger with Oil Search PNG Ltd is finalised, an economist says.
National Research Institute’s Peter Barker told The National that given Oil Search’s scale in the market, it would have a major impact.
“It’s a strange time in some of the main markets, with some companies choosing to rationalise their listings, with a prospect,” Barker said.
DATACO PNG Ltd chief executive officer Paul Komboi says retail internet prices will be reduced by about 50 per cent by the end of next year.
He told an investment conference yesterday that wholesale prices had already been reduced by about 40 per cent.
But it was not reduced at the retail end because of market competition.
“I hope in 2022, we will see at least a 50 per cent reduction in the retail price, and I can guarantee you that,” Komboi said.
“I think the market will move very fast and it will be very aggressive.
The Papua New Guinea Government has been advised to relieve the National Fisheries Authority (NFA) from policies that deny the authority from exercising its commercial capabilities, allowing it to move into the world of business.
This was a strategy included in their 10-year Strategic plan 2021 – 2030 and their five-year Corporate Plan 2021-2025, launched last month in Port Moresby.
KINA Securities Ltd has recorded an unaudited net profit of K39.8 million for the six months ending June 30, 2021.
It represents a growth of 36 per cent compared to the prior corresponding period.
The company board also declared an interim dividend of AU$3 or K8.25 per share.
This compares with an interim dividend per share of AU$4 per share or K10 per share for the prior corresponding period.
Managing director and chief executive officer, Greg Pawson said: “The results demonstrate that our strategy of transformation is successful and driving the business in a strong direction.
The Bank of Papua New Guinea has finally allocated K30 million towards the creation of the Macro, Small to Medium Enterprise (MSME) credit guarantee facility.
BPNG Governor Loi Bakani said they were only waiting for a K20 million contribution from the government to fund the facility.
“Given the importance of the MSME sector, the central bank and government are now working on establishing this credit guarantee corporation,” said Bakani.
He said this will be a facility for MSMEs to access when getting loans from financial institutions.
MSME Council President Des Yaninen explained that the credit guarantee corporation would guarantee security for MSMES wishing to get loans.
“Basically, MSMEs need to have some form of security when applying for a loan, because they don’t have security, they don’t qualify for a loan and don’t access funding,” said Yaninen.
KINA Bank has urged the Independent Consumer Competition Commission (ICCC) to approve its application to acquire 89.91 per cent shares from Westpac PNG.
In a meeting with the ICCC last week following a draft determination by the watchdog to decline the banks application, chairman Isikeli Taureka said the bank has addressed the contention by the ICCC that the acquisition would lead to tacit collusion and reduce competition.
“While the concepts of a duopoly and tacit collusion will be addressed in detail in our final economic and legal submissions, the significant disparity in market positions between Bank South Pacific and Kina indicate that such a result is impossible,” Taureka said.
PNG PRIME Minister James Marape says benefits from resource projects should be shared equally among all provinces.
He made the statement in Parliament on Friday when responding to Western Governor Toboi Awi Yoto who asked whether the Government could transfer 67 per cent equity in Ok Tedi mine, currently held by the Government, to Western.
“Western hosted Ok Tedi mine,” Yoto said. “For the past 38 years, it has been supporting PNG’s economy.
“However, there isn’t any large project or legacy that has been left behind by the project itself for the province.
“Thankfully, the previous government under Peter O’Neill, decided to give the province some shares and in your time as the prime minister, you honoured that commitment and released 33 per cent of the mine’s equity of which the Fly River government has 12 per cent.
THE Bank of Papua New Guinea (BPNG) has distanced itself from the regulatory actions taken against the Bank South Pacific (BSP) Financial Group Ltd.
BPNG maintains that the action was done independently based on the Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Act (2015).
Governor Loi Bakani said the Central Bank had not endorsed or approved the statement released by the Financial Analysis and Supervision Unit (Fasu) on Monday and the logo was not authorised.
“The Bank of PNG disassociates itself from the statement made by Fasu,” he said.
“The use of the bank logo was not authorised and the statement was not endorsed or approved by BPNG.
Kina Bank has established a special multi-million Kina pool of funds in a leading market move to support Small Businesses in Papua New Guinea .
The announcement was made today by Kina Bank Chief Executive Officer Greg Pawson.
Papua New Guinea Business News
We cover all Papua New Guinea and International business news on this page. Please subscribe to our latest business on the subscribe form available on this page.
Search Papua New Guinea Database >>