Hundreds of PNG farmers recruited for IQF facility in Pangia
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Hundreds of PNG farmers recruited for IQF facility in Pangia
PORT MORESBY: The new Papua New Guinea (PNG) Government is focusing on transforming its agriculture sector into an economic driver to stimulate growth.
Brian “Mushroom” Waii, team leader of the PNG-China Integrted Agriculture Industrial Park projects in Western and Eastern Highlands, said PNG could become the “richest black Christian nation” in five years on agriculture alone.
He claimed “if all vacant land or unused land are worked to produce fresh greens, PNG will truly be the richest black Christian country”.
Now, doesn’t that make sense?
PNG’s 8th Prime Minister James Marape has also said that downstream food processing chain was the key game changer for transforming the country’s agriculture industry into an international standard revenue earner.
That is already happening in Pangia where the Highlands Agriculture Industrial Centre (AIC), a 50:50 Joint Venture (JV) of the Southern Highlands Provincial Government (SHPG) and Innovative Agro Industry Ltd (IAI), is set to roll out its maiden product – frozen French fries – to hit the shelves before Independence Day on Sept 16.
The AIC is backed by a total K47 million (US$14 million) funding from Israel’s Export Credit Agency and Israel’s IDB bank.
And the AIC has already recruited hundreds of potato farmers to ensure constant supply of the fresh produce with a potential to recruit thousands of farmers in the near future for its Individually Quick Freezing (IQF) facility in Pangia.
PNG Cyber Monitor reproduces below the updates on the PNG’s agriculture development as reported by The National:
Work all idle land for agri-production
Agriculture and Livestock Minister John Simon has been tasked to transform his sector into Papua New Guinea (PNG)’s economic driver.
The National’s MALUM NALU looks into the plans and actions of the Government and what sector players say.
The National’s MALUM NALU looks into the plans and actions of the Government and what sector players say.
PNG’s 8th Prime Minister James Marape has given the Department of Agriculture and Livestock key targets that need to be achieved by 2022.
To stress his seriousness that transforming agriculture and livestock production into a world class revenue-earner is the way to stimulate and drive PNG into becoming the world’s “richest black christian nation” by 2029, he has taken the unprecedented move to appoint three vice-ministers to help Agriculture and Livestock Minister John Simon.
Marape believes that developing the agriculture and livestock industry would help stimulate and drive inclusive economic activities, triggering a domino effect to help fast track PNG’s socio-economic growth.
To stress his seriousness that transforming agriculture and livestock production into a world class revenue-earner is the way to stimulate and drive PNG into becoming the world’s “richest black christian nation” by 2029, he has taken the unprecedented move to appoint three vice-ministers to help Agriculture and Livestock Minister John Simon.
Marape believes that developing the agriculture and livestock industry would help stimulate and drive inclusive economic activities, triggering a domino effect to help fast track PNG’s socio-economic growth.
Left: Agriculture and Livestock Minister John Simon
Simon … only K271 million development funds but export revenue K2.8 billion
Simon says there is huge potential for agriculture to be a dominant player in PNG’s economy.
“For instance, there is genetic potential to produce 2,000kg/ha of coffee from the current production of 600kg/ha. Likewise, cocoa can produce 2,500kg/ha compared with only 366kg/ha now,” he said.
Simon said many of the challenges were manageable that simply required leadership at political and bureaucratic levels.
“There must be concerted efforts by all sector players, including the 11 agencies that are administering 19 pieces of legislation led by the Department of Agriculture and Livestock (DAL),” he said.
“We will do our best with the available resources such as manpower and funding to address some of the challenges, and put the sector on the path to becoming a key player and contributor to the economy,” he added.
Simon said he was already working on key tasks, including:
Simon says there is huge potential for agriculture to be a dominant player in PNG’s economy.
“For instance, there is genetic potential to produce 2,000kg/ha of coffee from the current production of 600kg/ha. Likewise, cocoa can produce 2,500kg/ha compared with only 366kg/ha now,” he said.
Simon said many of the challenges were manageable that simply required leadership at political and bureaucratic levels.
“There must be concerted efforts by all sector players, including the 11 agencies that are administering 19 pieces of legislation led by the Department of Agriculture and Livestock (DAL),” he said.
“We will do our best with the available resources such as manpower and funding to address some of the challenges, and put the sector on the path to becoming a key player and contributor to the economy,” he added.
Simon said he was already working on key tasks, including:
- NATIONAL Agriculture Sector Plan (NASP) 2019-2028;
- REVIEWING and amending certain outdated legislations such as Animals Act 1952, Rubber Regulation 1954, Quarantine Act 1953, Quarantine Legislation 1956, Slaughtering Act 1964 and Cocoa Regulation 1982;
- REVIEWING and updating commodity board legislation such as Cocoa Act and Oil Palm Industry Corporation Act;
- INSTITUTIONAL alignment to ensure scarce financial resources are efficiently managed;
- ENSURING credit institutions mandated to facilitate credit to agriculture must do so to elevate farmers from subsistence to commercial level; and
- ENSURING the same level of recognition is given to extractive and non-extractive industries.
“If tax exemptions and holidays are given to the extractive industries, the same must also be given to the non-extractive industries, including agriculture.
“In terms of financing, the sector has not done well in the past years because of lack of a sector plan. Between 2014 and 2018, the sector received only K271 million in development funds.
“Over the same period, we had K300 million aimed for agriculture parked elsewhere, and used without the sector’s involvement. It is forecasted that over the next three years, another K300 million will be parked elsewhere again.
“This practice of putting agriculture funding elsewhere must stop if we are to grow the sector and resurrect its importance in the economy. Despite the low fundings, the sector contributed an estimated K2.8 billion in export revenue in 2017.
“Agriculture and livestock have the potential to contribute more. But the Government must recognise the potential to maximise benefits.”
Simon said the NASP would be delivered within three months to set the foundation for the next 10 years, with agencies also seeking financing from various sources,” he said.
“We will continue to work with the private sector and development partners to deliver the priorities to help transform agriculture into the economic backbone of PNG’s economy,” he added.
“In terms of financing, the sector has not done well in the past years because of lack of a sector plan. Between 2014 and 2018, the sector received only K271 million in development funds.
“Over the same period, we had K300 million aimed for agriculture parked elsewhere, and used without the sector’s involvement. It is forecasted that over the next three years, another K300 million will be parked elsewhere again.
“This practice of putting agriculture funding elsewhere must stop if we are to grow the sector and resurrect its importance in the economy. Despite the low fundings, the sector contributed an estimated K2.8 billion in export revenue in 2017.
“Agriculture and livestock have the potential to contribute more. But the Government must recognise the potential to maximise benefits.”
Simon said the NASP would be delivered within three months to set the foundation for the next 10 years, with agencies also seeking financing from various sources,” he said.
“We will continue to work with the private sector and development partners to deliver the priorities to help transform agriculture into the economic backbone of PNG’s economy,” he added.
Left:Brian ‘Mushroom’ Waii
Waii … work all unused land and PNG will be richest black nation based on agriculture alone
Brian ‘Mushroom’ Waii, team leader of the PNG-China Integrated Agriculture Industrial Park projects in Western and Eastern Highlands, says Papua New Guinea(PNG) can become the “richest black christian nation” in five years on agriculture alone.
He said this in response to Marape’s focus on agriculture to drive PNG’s economy.
Waii said the two key factors in agriculture development were land and people.
“There has to be an alternate source of money. The answer is to get 80% of our people involved in the agriculture sector, be it formal or informal.
“Everyone must work their coffee and cocoa gardens, coconut plantations or vegetable farms. All available arable land must be used.
“Infrastructure connectivity is the responsibility of the Government and development must be prioritised,” he said, adding that “if all vacant or unused land are worked to produce fresh greens, PNG will truly be the richest black christian country”.
Brian ‘Mushroom’ Waii, team leader of the PNG-China Integrated Agriculture Industrial Park projects in Western and Eastern Highlands, says Papua New Guinea(PNG) can become the “richest black christian nation” in five years on agriculture alone.
He said this in response to Marape’s focus on agriculture to drive PNG’s economy.
Waii said the two key factors in agriculture development were land and people.
“There has to be an alternate source of money. The answer is to get 80% of our people involved in the agriculture sector, be it formal or informal.
“Everyone must work their coffee and cocoa gardens, coconut plantations or vegetable farms. All available arable land must be used.
“Infrastructure connectivity is the responsibility of the Government and development must be prioritised,” he said, adding that “if all vacant or unused land are worked to produce fresh greens, PNG will truly be the richest black christian country”.
Left: Charles Dambui
Dambui … enough labour and land, but we are not maximising our full production potential
Coffee Industry Corporation chief executive officer Charles Dambui has welcomed Marape’s focus on agriculture to transform PNG into a vibrant and wealthy economy.
“We, in the coffee industry, fully supports the Government’s policy and affirmative economic action to “Take Back PNG” via the agriculture sector.
“The agriculture industry, including coffee, comes under the economic sector. We are pleased that the Marape-led Government is making concrete moves and measures to stimulate this sector.
“We have enough labour and land, but we are not maximising our full production potential. But if we act to optimise our potential, PNG’s socio-economic woes will be eased significantly,” he added.
“The Government is making the right move. It must now display determination and implement creative incentive programmes to mobilise our people and farmers to redouble their production efforts,” he added.
Coffee Industry Corporation chief executive officer Charles Dambui has welcomed Marape’s focus on agriculture to transform PNG into a vibrant and wealthy economy.
“We, in the coffee industry, fully supports the Government’s policy and affirmative economic action to “Take Back PNG” via the agriculture sector.
“The agriculture industry, including coffee, comes under the economic sector. We are pleased that the Marape-led Government is making concrete moves and measures to stimulate this sector.
“We have enough labour and land, but we are not maximising our full production potential. But if we act to optimise our potential, PNG’s socio-economic woes will be eased significantly,” he added.
“The Government is making the right move. It must now display determination and implement creative incentive programmes to mobilise our people and farmers to redouble their production efforts,” he added.
Left: Dr Sergie Bang
Bang … research is vital to ensure growth and sustainability
National Agriculture Research Institute (NARI) director-general Dr Sergie Bang says the renewable sector is where PNG needs to focus on.
“And, this covers agriculture, forestry, fisheries and tourism,” he said in response to Marape’s call to all to lift the agriculture sector to greater heights, thereby driving PNG’s economy.
“Efforts must be concentrated on improving market-driven production to replace imports for food crops, livestock and processed timber exports,” he added.
Bang stressed that more attention needed to be paid to agriculture research which involved NARI.
“Advanced countries have had their economies really prospered by driving at least 10% of their GDP (Gross Domestic Product) in agriculture. Of that 10%, a good proportion of up to 3% go into research. Now, in PNG, it is less than 1%. This is inadequate to stimulate growth and progress in the agriculture sector,” he added.
Bang urged the new Government and Agriculture Minister to consult agriculture economists so as to ensure that agriculture development targets were on track with the necessary support in research.
“Only with a robust research network in place can the agriculture sector and our economy grow and develop.
“The World Bank and the Food and Agriculture Organisation, in their global studies, have also found that 10% of a country’s GDP should go to agriculture.
“We emphasise strongly that agriculture research, carried out by NARI on food crops and livestock, Coffee Research Institute, Cocoa and Coconut Research Institute, Oil Palm Research Institute and others, should be boosted with funding.
“When agriculture production is raised, various issues will also arise. This is where research is vital to ensure growth and sustainability,” he added.
National Agriculture Research Institute (NARI) director-general Dr Sergie Bang says the renewable sector is where PNG needs to focus on.
“And, this covers agriculture, forestry, fisheries and tourism,” he said in response to Marape’s call to all to lift the agriculture sector to greater heights, thereby driving PNG’s economy.
“Efforts must be concentrated on improving market-driven production to replace imports for food crops, livestock and processed timber exports,” he added.
Bang stressed that more attention needed to be paid to agriculture research which involved NARI.
“Advanced countries have had their economies really prospered by driving at least 10% of their GDP (Gross Domestic Product) in agriculture. Of that 10%, a good proportion of up to 3% go into research. Now, in PNG, it is less than 1%. This is inadequate to stimulate growth and progress in the agriculture sector,” he added.
Bang urged the new Government and Agriculture Minister to consult agriculture economists so as to ensure that agriculture development targets were on track with the necessary support in research.
“Only with a robust research network in place can the agriculture sector and our economy grow and develop.
“The World Bank and the Food and Agriculture Organisation, in their global studies, have also found that 10% of a country’s GDP should go to agriculture.
“We emphasise strongly that agriculture research, carried out by NARI on food crops and livestock, Coffee Research Institute, Cocoa and Coconut Research Institute, Oil Palm Research Institute and others, should be boosted with funding.
“When agriculture production is raised, various issues will also arise. This is where research is vital to ensure growth and sustainability,” he added.
Mark Worinu
Worinu … Government needed innovative policies that stimulate more people to participate in the agriculture sector
Fresh Produce Development Agency general-manager Mark Worinu says it is really timely for Marape and his Government to call for the agriculture sector players to rise and drive PNG’s economy.
“All Papua New Guineans must embrace the call as a national hope for PNG,” he said, adding that “we are looking forward to doubling our efforts to help drive this sector whenever and wherever we can”.
“Agriculture is the mainstay of PNG’s society and economy. Driving the agriculture sect or to a higher production level is a step in the right direction,” he added.
Worinu said: “In the past, growing the agriculture sector was all talk only, or merely paying lip service). Pledges of support for the sector remained just that.
“We now hope the Marape-led new Government’s new vision for PNG is backed by actions and deeds. Let not the new vision, new (economic) agenda and new hope remain just that.
“Policies must be implemented competently and efficiently to realise the new growth visions for all. Everyone has a role to help raise the agriculture sector to a higher level of production and success for PNG’s economy.
“Directly or indirectly, we all can contribute to nation building. If not, our people and country will remain as it is for years to come.”
Warinu said the Government needed innovative policies that stimulate more people to participate in the agriculture sector.
“Now, we see only a few people participating in developing the economy. The vast majority can be accommodated in the agriculture sector.
“That must be one of the Government’s targets to achieve its dreams for the people and country,” he added.
Fresh Produce Development Agency general-manager Mark Worinu says it is really timely for Marape and his Government to call for the agriculture sector players to rise and drive PNG’s economy.
“All Papua New Guineans must embrace the call as a national hope for PNG,” he said, adding that “we are looking forward to doubling our efforts to help drive this sector whenever and wherever we can”.
“Agriculture is the mainstay of PNG’s society and economy. Driving the agriculture sect or to a higher production level is a step in the right direction,” he added.
Worinu said: “In the past, growing the agriculture sector was all talk only, or merely paying lip service). Pledges of support for the sector remained just that.
“We now hope the Marape-led new Government’s new vision for PNG is backed by actions and deeds. Let not the new vision, new (economic) agenda and new hope remain just that.
“Policies must be implemented competently and efficiently to realise the new growth visions for all. Everyone has a role to help raise the agriculture sector to a higher level of production and success for PNG’s economy.
“Directly or indirectly, we all can contribute to nation building. If not, our people and country will remain as it is for years to come.”
Warinu said the Government needed innovative policies that stimulate more people to participate in the agriculture sector.
“Now, we see only a few people participating in developing the economy. The vast majority can be accommodated in the agriculture sector.
“That must be one of the Government’s targets to achieve its dreams for the people and country,” he added.
Left: Terry Koim
Koim … reviving PNG’s once-thriving livestock industry
The livestock industry has collapsed to such a low that the people have cynically referred to the DAL as “Department of Agriculture and Deadstock”, says Livestock Development Corporation (LDC) project manager Terry Koim.
“It is only the right thing to do for the new Government to give due attention and priority to revive PNG’s livestock industry. After all, the majority of Papua New Guineans depend on agriculture and livestock to sustain their livelihood. Marape’s unprecedented move to appoint a vice-minister for the livestock industry shows his Government’s seriousness in wanting to revive PNG’s once-thriving livestock industry,” he added.
The livestock industry has collapsed to such a low that the people have cynically referred to the DAL as “Department of Agriculture and Deadstock”, says Livestock Development Corporation (LDC) project manager Terry Koim.
“It is only the right thing to do for the new Government to give due attention and priority to revive PNG’s livestock industry. After all, the majority of Papua New Guineans depend on agriculture and livestock to sustain their livelihood. Marape’s unprecedented move to appoint a vice-minister for the livestock industry shows his Government’s seriousness in wanting to revive PNG’s once-thriving livestock industry,” he added.
Koim said: “Over the last four years, we have neglected livestock, with no funding for LDC. So we have not been able to revive all our operations nationwide.“We are looking at taking back all of our land that is under our control so that we can make livestock a big industry for all of us, as it used to be in the past.
“This is why we are so happy with the prime minister’s attention to this sector. Livestock is an important component of the DAL, and we are even happier to have a vice-minister of our own.
“The vice-minister can work with us to steer livestock activities for the benefit of people and country. The LDC owned large tracts of land on what used to be once-thriving cattle ranches nationwide.
“The DAL did an audit on land owned by LDC and DAL nationwide and I am still awaiting the audit report.
“Right now we have 4,500ha in Central’s Launakalana, land planned for Eastern Highlands’ Korofeigu Agriculture Park and several more plots nationwide.
“We need all those land if we want to breed cattle, pigs, goats and other livestock. All the LDC land nationwide had been neglected by the previous governments,” he added.
Koim also appealed to people squatting illegally on LDC land nationwide to vacate “before we move in to revive our livestock operations”.
Downstream food processing game changer in Pangia
Weiss … potential to recruit thousands of farmers
IN remote Pangia, Southern Highlands, a real and solid game changer in PNG’s agriculture sector is taking place with hundreds of Highlands farmers taking up potato growing.
The farmers, spanning from Eastern Highlands, Western Highlands, Enga and Southern Highlands, are participating in an outgrowers’ programme to supply potatoes to the new Highlands Agriculture Industrial Centre (AIC) in Pangia.
The AIC is a fully mechanised frozen fruits and vegetables facility, equipped with an automated Individually Quick Freezing (IQF) processing line, the first of its kind in PNG and the entire Pacific region.
The AIC is a 50:50 Joint Investment (JV) of the Southern Highlands Provincial Government (SHPG) and Innovative Agro Industry Ltd (IAI), backed by a total K47 million (US$14 million) funding from Israel’s Export Credit Agency (ASHRA) and Israel’s IDB bank.
The maiden product line of the AIC is set to be frozen French fries, a large import bill for PNG.
The AIC is poised to compete with the imports, giving PNG consumers additional choice of quality home grown fries at competitive prices.
The processing plant will complete its test running in the coming few weeks and its products are expected to hit the shelves before Independence Day on Sept 16.
The fries are just the beginning, and AIC will process other fresh produce from locally grown pineapples, strawberries, taro, ginger and others.
“We’re actually creating a value chain that starts from the fields of small farms and ending on the shelves of the big markets in PNG and beyond,” IAI chairman and executive director Ilan Weiss said.
“When you freeze a vegetable, process it, you’re actually retaining its nutritional value and giving it a longer shelf life. It is actually preserving the food.
“Let’s say we want to do frozen fries, which is a big import bill into PNG. We can actually engage hundreds and thousands of farmers, and that’s actually what we’re doing now, to cultivate potatoes that are suitable for fries.
“We can actually still process the fresh greens if the Highlands Highway is closed due to natural occurrences like a landslide, or things like tribal fights or whatever.
“We can preserve the food, wait two, three or four weeks, and then send it frozen to Lae to be transported to markets.
“For the farmer, that’s a complete value chain because the only thing he needs to do and we want him to do is to farm diligently to keep fresh produce supply consistent.
“The rest is taken care of for the farmer, and he has more or less an assured market in advance for working their land,” he added.
For the fries’ product line, AIC will initially require at least 4,000 metric tonnes of potatoes annually.
To achieve this record goal, it is joined by the Fresh Produce Development Agency (FPDA) and National Agriculture Quarantine Inspection Authority (NAQIA) to provide advanced potato varieties to hundreds of farmers in four provinces: Southern Highands, Enga, Eastern Highlands and Western Highlands.
The farmers are also provided with high quality plants, fertilisers, extension services and logistics – support that would ensure their success and subsistence confidence.
The NAQIA, FPDA and AIC have in April and May completed the first round of recruiting hundreds of farmers.
They were given 45 tonnes of potato seeds in Pangia (Southern Highlands), Sirunki (Enga), Tambul-Nebilyer (Western Highlands) and Goroka (Eastern Highlands), as well as potato mix fertilisers and the necessary extension.
IN remote Pangia, Southern Highlands, a real and solid game changer in PNG’s agriculture sector is taking place with hundreds of Highlands farmers taking up potato growing.
The farmers, spanning from Eastern Highlands, Western Highlands, Enga and Southern Highlands, are participating in an outgrowers’ programme to supply potatoes to the new Highlands Agriculture Industrial Centre (AIC) in Pangia.
The AIC is a fully mechanised frozen fruits and vegetables facility, equipped with an automated Individually Quick Freezing (IQF) processing line, the first of its kind in PNG and the entire Pacific region.
The AIC is a 50:50 Joint Investment (JV) of the Southern Highlands Provincial Government (SHPG) and Innovative Agro Industry Ltd (IAI), backed by a total K47 million (US$14 million) funding from Israel’s Export Credit Agency (ASHRA) and Israel’s IDB bank.
The maiden product line of the AIC is set to be frozen French fries, a large import bill for PNG.
The AIC is poised to compete with the imports, giving PNG consumers additional choice of quality home grown fries at competitive prices.
The processing plant will complete its test running in the coming few weeks and its products are expected to hit the shelves before Independence Day on Sept 16.
The fries are just the beginning, and AIC will process other fresh produce from locally grown pineapples, strawberries, taro, ginger and others.
“We’re actually creating a value chain that starts from the fields of small farms and ending on the shelves of the big markets in PNG and beyond,” IAI chairman and executive director Ilan Weiss said.
“When you freeze a vegetable, process it, you’re actually retaining its nutritional value and giving it a longer shelf life. It is actually preserving the food.
“Let’s say we want to do frozen fries, which is a big import bill into PNG. We can actually engage hundreds and thousands of farmers, and that’s actually what we’re doing now, to cultivate potatoes that are suitable for fries.
“We can actually still process the fresh greens if the Highlands Highway is closed due to natural occurrences like a landslide, or things like tribal fights or whatever.
“We can preserve the food, wait two, three or four weeks, and then send it frozen to Lae to be transported to markets.
“For the farmer, that’s a complete value chain because the only thing he needs to do and we want him to do is to farm diligently to keep fresh produce supply consistent.
“The rest is taken care of for the farmer, and he has more or less an assured market in advance for working their land,” he added.
For the fries’ product line, AIC will initially require at least 4,000 metric tonnes of potatoes annually.
To achieve this record goal, it is joined by the Fresh Produce Development Agency (FPDA) and National Agriculture Quarantine Inspection Authority (NAQIA) to provide advanced potato varieties to hundreds of farmers in four provinces: Southern Highands, Enga, Eastern Highlands and Western Highlands.
The farmers are also provided with high quality plants, fertilisers, extension services and logistics – support that would ensure their success and subsistence confidence.
The NAQIA, FPDA and AIC have in April and May completed the first round of recruiting hundreds of farmers.
They were given 45 tonnes of potato seeds in Pangia (Southern Highlands), Sirunki (Enga), Tambul-Nebilyer (Western Highlands) and Goroka (Eastern Highlands), as well as potato mix fertilisers and the necessary extension.
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