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TRANSCRIPT
PNG COFFEE INDUSTRY
Doing Business with Europe 23rd February 2012
MR. NAVI ANISChief Executive Officer
Coffee Industry Corporation LtdGOROKA, EASTERN HIGHLANDS PROVINCE
INTENT OF PAPER
1 THE COFFEE INDUSTRY CORPORATION LTD2 CURRENT STATE OF THE COFFE INDUSTRY3 CHALLENGES
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COFFEE INDUSTRY CORPORATION LTD
Established under the CIC (Statutory Powers & Functions) Act 1991.
CIC Ltd – a company registered under the Companies Act, empowered with State Regulatory powers & functions.
Merger of - Coffee Industry BoardCoffee Development AgencyCoffee Research Institute
Represented by Government (3) and the Indusry (9):* Smallholders (6)* Blockholder (1), Plantation Processor (1), Exporters (1)
Coffee Industry Corporation Ltd
• Functions– Industry Regulation– Research & Extension– Marketing & Promotion
• Mission– Maximise financial returns to all coffee growers;
&– Contribute towards the Government’s economic
and social policy goals.4
Status of Coffee in PNG• Relative importance of coffee in agriculture
– Major source of income for around 50% of the coffee growing population– Earns K460 million/year of which 60-70% goes to coffee households
050000
100000150000200000250000300000350000400000
Coffee Coconut Cocoa Oil Palm Rubber
Households Involved in Agricultural Export Activities
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PNG Coffee IndustryProduction
EHP32%
Others9%
Simbu8%
WHP45%
Morobe6%
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Production by Province Production by Sector
The World Coffee IndustryProducing Countries
PNG is one of 60 coffee producing countries; it accounts for 1.1% of world exports. Major producers are Brazil, Vietnam, Colombia and Indonesia
40.5
16.2
11.5
8.1
4.2
3.9
3.7
3.4
2.9
2.6 2.5
2 1.8
1.5 1.1 1.1
0.9 0.8 0.7 0.6
0 5 10 15 20 25 30 35 40 45
BRAZIL VIETNAM
COLOMBIA
INDONESIA
INDIA ETHIOPIA
GUATEMALA
MEXICO PERU
HONDURAS
UGANDA
COSTARICA
IVORYCOST
ELSALVADOR
PNG NICARAGUA
THAILAND
KENYA VENEZUELA
CAMEROON
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PNG Coffee IndustryProduction & Export Volumes and Values
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0
200
400
600
800
1000
1200
1400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Vol
ume
('000
bag
s)
0
100
200
300
400
500
600
Val
ue (k
ina
in m
illio
ns)
Production (bags) Export Volume (bags) Export Value (kina)
PNG Coffee Industry• Major Issues/Challenges
– Stagnation in production.– Decline of the estate sector.– Inconsistent smallholder coffee quality with resultant
discount (up to 14%) in the World Market (NY “C”).– Potential threat of Coffee Berry Borer.– Rural infrastructure and transport.– Land tenure issues– Coffee Theft (Cherry)– Lack of Investment (growth & production)
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• Production
– Mobilisation of smallholder coffee growers as production units(cooperatives)
– Demand driven research and extension (PRAP)– Rehabilitation of all aging senile coffee trees:– Establishment of nurseries– Expansion into new growth areas
• Marketing– Increase organic coffee exports from 5% to 30%
by 2018 • Mobilisation of smallholder coffee growers
(cooperatives) –• Promote marketing systems which revolve around
quality and price premiums• Product development for niche market
– Product Profiling & Consistency– Certification– Branding
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Chart 9: Exports by Grade in 2010
A/AA 4.9%
X 9.3%
PSC26.4%
Y1 44.7%
Y3 4.8%
Robusta0.9%
Others9.0%
Trade – Exports to Europe
• NO TRADE BARRIERS with TRADING Coffee to Europe.
• Sanitary and Phytosanitary Standards – NAQIA• Exports Documents – PNG Customs• Roast & Ground – Nutritional Content
Labelling - Local Chemistry Laboratories or overseas.
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PNG Coffee Industry
PSC, 16%
X, 10%A, 9%
Y1, 60%
T, 3%Rob, 1%
Organic, 1%
Australia22%
USA20%
Japan8%
Others 10%
Germany40%
Exports
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Exports by Grade Exports by Destination
Coffee Industry• Coffee remains the single most important commodity at the
small holder level in PNG.
• Smallholder coffee growers remain the backbone of the industry given the decline in the estate sector.
• Industry Stagnant for the last 10-15 years . To overcome this investment (rehabilitation & new planting) is required.
• PPAP Project timely & represents the single biggest intervention since the Coffee Leaf Rust Eradication Program (late 1980s).
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Coffee Industry Corporation Ltd
Yumi Lukautim Kopi Na Kopi Bai Lukautim Yumi
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