The global demand for copra is for PNG to reap
News that matters in Papua New Guinea
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| An Oceanic country located to the north of Australia, Copra Plantations in New Guinea have been cultivated since the late 19th century. Originally established by German colonialists, they were later developed by Australian interests following World War II .It is a major source of food and export earnings, and is used for research into germplasm prospection and collection, breeding, embryo culture and agronomy. The Virgin Oil Production has given a boost to it’s economy. According to the Food and Agricultural organization of the UN it produces about 930,000 tonnes of coconuts in 2009. - http://www.trendingtopmost.com/worlds-popular-list-top-10/2017-2018-2019-2020-2021/world/coconut-producing-countries-world-highest-largest/ |
The global demand for copra is for PNG to reap
PORT MORESBY: Papua New Guinea was listed as the world’s 7th largest coconut producing country.
But it is fast losing that ranking and PNG has even been listed at No. 9 by trendingtopmost.com
And the top coconut suppliers are struggling to meet the growing demands of the global economy.
Since demand is still outstripping supply, and despite competition from other vegetable oils, the coconut industry will continue to be a profitable venture.
However, the potential of the industry has been overlooked in Papua New Guinea (PNG) and also taken for granted.
Coconut trees in plantations are too matured, thus production suffers.
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So, going forward, it just makes common sense that the Government seriously look into consolidating the coconut industry for domestic consumption and exports.
PNG Cyber Monitor found this report published by The National that much informative on the potential of the coconut industry in PNG:
Consolidate PNG’s 7th ranking in the world as copra producer
COCONUT is Papua New Guinea (PNG)’s fourth most important crop with tremendous growth potential. Kokonas Indastri Koporesen (KIK) is ambitiously aiming to create 500,000 Small-Medium Entrepreneurs (SMEs) in the coconut industry by 2030. The National’s senior reporter CLIFFORD FAIPARIK looks into the copra industry’s development.
THE Kokonas Indastri Koporesen (KIK) and PNG’s copra industry unofficially unites Papua New Guineans who speak some 800 different languages.
Copra production united the nation by bringing laborers from the Highlands and inland areas of the Momase regions to work in bustling coconut plantations, especially in East New Britain, Bougainville, New Ireland and Manus in the 19th and 20th centuries. It was also the sole economic back bone for the nation, long before the mining industry started in the 1930s at Eddie Creek in Wau Bulolo Gold fields, Morobe.
It not only built the nation’s economy, but also laid the political groundwork and foundation that led to PNG’s Independence on Sept 16, 1975. One of the nation and Pangu Party’s founding father, Sir Pita Lus, learnt to apply politics to unite PNG and to fight for the rights of the locals by working as a laborer in Manus during the hype of the coconut plantation days in the 1950s.
PNG’s first and second Governor-Generals, the late Sir John Guise and Sir Tore Lokololo, also entered politics by uniting their people in the 1950s, founding the Cooperative Societies to establish coconut plantations in Milne Bay and Gulf provinces.
Also, Sir John, after losing in the 1977 national elections, still believed that the coconut industry could determine the political, economic and social future of this young nation and he became KIK’s first Copra Marketing Board (CMB) chairman.
Copra production united the nation by bringing laborers from the Highlands and inland areas of the Momase regions to work in bustling coconut plantations, especially in East New Britain, Bougainville, New Ireland and Manus in the 19th and 20th centuries. It was also the sole economic back bone for the nation, long before the mining industry started in the 1930s at Eddie Creek in Wau Bulolo Gold fields, Morobe.
It not only built the nation’s economy, but also laid the political groundwork and foundation that led to PNG’s Independence on Sept 16, 1975. One of the nation and Pangu Party’s founding father, Sir Pita Lus, learnt to apply politics to unite PNG and to fight for the rights of the locals by working as a laborer in Manus during the hype of the coconut plantation days in the 1950s.
PNG’s first and second Governor-Generals, the late Sir John Guise and Sir Tore Lokololo, also entered politics by uniting their people in the 1950s, founding the Cooperative Societies to establish coconut plantations in Milne Bay and Gulf provinces.
Also, Sir John, after losing in the 1977 national elections, still believed that the coconut industry could determine the political, economic and social future of this young nation and he became KIK’s first Copra Marketing Board (CMB) chairman.
The industry, although played a significant part in the colonial days and in the lead up to Independence, in terms of its contribution to the national economy in generating revenue and providing employment for a colony that was contemplating self-governance and eventual Independence, it has now been displaced by other cash crops and the booming mineral, petroleum and gas sectors.
And due to neglect, the then Government saw the need to revive it and harness the emergence of technology and new marketing strategy to change from raw copra products to coconut by-products.
The change was to meet the challenges of the global market and CMB was replaced in 2001 by the current KIK. With KIK in place, it revived the coconut industry and currently the coconut industry is the fourth most significant agriculture cash crop in terms of economic importance to PNG. From the KIK official website, a total of 464,328 households (35% of the total households in PNG or an estimated 2.6 million people) are engaged in coconut activities in PNG to either generate income and/or as food to supplement their livelihoods.
From this sum, 134,655 (29%) were engaged in cash generating activities whilst 329,673 (71%) were engaged for their own consumption and use. On average, the industry contributes some K126.5 million per year to the PNG economy through the export revenue it generates. The KIK estimates that more than 70% are transmitted directly to copra producers.
And the industry has changed in recent years and there is now a growing shift from the traditional dried and smoked copra to high value coconut products, injecting a new lease of life and a new range of product potential as well as emerging markets.
This commercialisation of more high value coconut products is in line the Government’s initiatives aimed at streamlining research and development to augment this focus.
Many small and medium enterprises are taking these opportunities to explore and specialise in virgin coconut oil production and use this as a base for soap production, deodorant and even launch into coconut biofuels.
And due to neglect, the then Government saw the need to revive it and harness the emergence of technology and new marketing strategy to change from raw copra products to coconut by-products.
The change was to meet the challenges of the global market and CMB was replaced in 2001 by the current KIK. With KIK in place, it revived the coconut industry and currently the coconut industry is the fourth most significant agriculture cash crop in terms of economic importance to PNG. From the KIK official website, a total of 464,328 households (35% of the total households in PNG or an estimated 2.6 million people) are engaged in coconut activities in PNG to either generate income and/or as food to supplement their livelihoods.
From this sum, 134,655 (29%) were engaged in cash generating activities whilst 329,673 (71%) were engaged for their own consumption and use. On average, the industry contributes some K126.5 million per year to the PNG economy through the export revenue it generates. The KIK estimates that more than 70% are transmitted directly to copra producers.
And the industry has changed in recent years and there is now a growing shift from the traditional dried and smoked copra to high value coconut products, injecting a new lease of life and a new range of product potential as well as emerging markets.
This commercialisation of more high value coconut products is in line the Government’s initiatives aimed at streamlining research and development to augment this focus.
Many small and medium enterprises are taking these opportunities to explore and specialise in virgin coconut oil production and use this as a base for soap production, deodorant and even launch into coconut biofuels.
Aku … KIK creating better opportunities with incentives for stakeholders to participate in new ventures and industry developments
The coconut industry can be a major economic contributor generating up to K500 million annually, says KIK acting managing director Alan Aku.
Aku said coconut generated K127 million in revenue from exports annually and an estimated K381 million from local trade.
“But we continue to forget that coconut trade in the domestic market is a big industry. We estimate that 381 million nuts are consumed in this country annually.
“The price of a coconut is between 50t and K5 so if you put the kina against what we consume in this country which is 381 million nuts, you will get an estimated K381 million in revenue generated in the domestic market.
“If you add the annual export revenue of K126.5 million and K381 million, you are looking at a K500 million industry in this country.
“It affects 35 per cent of the total households in the country estimated at 6.2 million people who are involved in using and consuming coconuts,” he added.
Aku said the coconut industry significant revenue earner for PNG that could not be continuously overlooked. So, the first ever coconut festival this month will look to promoting the industry. We need to promote the potential and benefits of the coconut so that people who look after this commodity to make ends meet can have better income opportunities,” he added.
And KIK is now creating better opportunities with incentives for stakeholders to participate in new ventures and industry developments.
The coconut industry can be a major economic contributor generating up to K500 million annually, says KIK acting managing director Alan Aku.
Aku said coconut generated K127 million in revenue from exports annually and an estimated K381 million from local trade.
“But we continue to forget that coconut trade in the domestic market is a big industry. We estimate that 381 million nuts are consumed in this country annually.
“The price of a coconut is between 50t and K5 so if you put the kina against what we consume in this country which is 381 million nuts, you will get an estimated K381 million in revenue generated in the domestic market.
“If you add the annual export revenue of K126.5 million and K381 million, you are looking at a K500 million industry in this country.
“It affects 35 per cent of the total households in the country estimated at 6.2 million people who are involved in using and consuming coconuts,” he added.
Aku said the coconut industry significant revenue earner for PNG that could not be continuously overlooked. So, the first ever coconut festival this month will look to promoting the industry. We need to promote the potential and benefits of the coconut so that people who look after this commodity to make ends meet can have better income opportunities,” he added.
And KIK is now creating better opportunities with incentives for stakeholders to participate in new ventures and industry developments.
Maip … KIK providing training for quality, proper packaging, branding, labelling and graphics to attract consumers
KIK agro-business manager Douglas Maip, KIK SMEs Programme was now helping businesses achieve international standards in terms of packaging.
The change and packaging started five years ago with the programme. We started with four SMEs in 2014 when packaging and labelling were not like what it is today.
“They used to extract coconut oil and filled in Coca-Cola and cooking oil bottles and used markers for labelling,” Maip said.
“From 2014, we have grown from four to 16 SMEs and have upgraded the quality, packaging and labelling so that the products meet both local and international standards.
“This is also a way to help support the Government’s aim of creating 500,000 PNG SMEs by 2030.”
Maip said KIK was currently supporting the 16 small business owners under its SME Programme with training and coconut milk extraction machines.
“The training is for quality and proper packaging, branding, labelling and graphics that are key to market power to attract consumers. We also support them by bringing in coconut extraction machines from other countries,” he added.
Maip said this was how the coconut industry had grown from copra to high-value downstream coconut products.
“We know that copra is a labour intensive industry but now it has shifted from copra to value added products and interesting things are happening in this sector,” he said.
Tambua … coconut industry is ready to scale new heights through downstream processing of high-value organic coconut products
KIK chairman Kili Tambua is more enthusiastic in the advancement of the industry and he predicted that the coconut industry was ready to scale new heights through downstream processing of high-value organic coconut products.
KIK agro-business manager Douglas Maip, KIK SMEs Programme was now helping businesses achieve international standards in terms of packaging.
The change and packaging started five years ago with the programme. We started with four SMEs in 2014 when packaging and labelling were not like what it is today.
“They used to extract coconut oil and filled in Coca-Cola and cooking oil bottles and used markers for labelling,” Maip said.
“From 2014, we have grown from four to 16 SMEs and have upgraded the quality, packaging and labelling so that the products meet both local and international standards.
“This is also a way to help support the Government’s aim of creating 500,000 PNG SMEs by 2030.”
Maip said KIK was currently supporting the 16 small business owners under its SME Programme with training and coconut milk extraction machines.
“The training is for quality and proper packaging, branding, labelling and graphics that are key to market power to attract consumers. We also support them by bringing in coconut extraction machines from other countries,” he added.
Maip said this was how the coconut industry had grown from copra to high-value downstream coconut products.
“We know that copra is a labour intensive industry but now it has shifted from copra to value added products and interesting things are happening in this sector,” he said.
Tambua … coconut industry is ready to scale new heights through downstream processing of high-value organic coconut products
KIK chairman Kili Tambua is more enthusiastic in the advancement of the industry and he predicted that the coconut industry was ready to scale new heights through downstream processing of high-value organic coconut products.
“ We want to increase our average K126 million contribution to the PNG economy and boost our global market presence. We stand ready to partner with the Government, SMEs, new investors, embrace new emerging technologies and expand participation in the coconut industry beyond the 2.6 million people.”
He said the full potential of coconut would be realised as SMEs were now venturing into producing new products, apart from copra.
He said the demand for PNG coconuts in the international market was high and it was what the local coconut industry was hoping to harness.
“The commercialisation of more high value coconut products are running parallel with the Government initiatives aimed at streamlining research and development,” Tambua said.
“Many SMEs are seizing opportunities to explore and specialise in virgin coconut oil production and use this as a base for soap production, deodorants and even launching into coconut biofuels.
“The prospects of the coconut industry is extremely promising for Papua New Guineans in the coming years with increased coconut export revenues anticipated through collaborations.
“We want to increase our average K126 million contribution to the PNG economy and boost our global market presence. We stand ready to partner with the Government, SMEs, new investors, embrace new emerging technologies and expand participation in the coconut industry beyond the 2.6 million people,” he added.
He said the demand for PNG coconuts in the international market was high and it was what the local coconut industry was hoping to harness.
“The commercialisation of more high value coconut products are running parallel with the Government initiatives aimed at streamlining research and development,” Tambua said.
“Many SMEs are seizing opportunities to explore and specialise in virgin coconut oil production and use this as a base for soap production, deodorants and even launching into coconut biofuels.
“The prospects of the coconut industry is extremely promising for Papua New Guineans in the coming years with increased coconut export revenues anticipated through collaborations.
“We want to increase our average K126 million contribution to the PNG economy and boost our global market presence. We stand ready to partner with the Government, SMEs, new investors, embrace new emerging technologies and expand participation in the coconut industry beyond the 2.6 million people,” he added.
Basil … it is time to revive PNG’s coconut industry.
National Planning and Monitoring Minister Sam Basil says it is time to revive PNG’s coconut industry.
Basil urged the 16 leading micro, SMEs that had enjoyed Government support to take the lead with KIK to help PNG become “a world leader in organic coconut products”.
He also urged SMEs to expand beyond the country’s range of high value coconut products, including virgin coconut oil, soaps, cosmetics, deodorants and food products which had been increasing, and into the unexplored potential of products like charcoal, beverages and lumber for furniture.
With a promising outlook, KIK is now reviving its run down coconut plantations, according to the KIK website. And over the years KIK have been rolling out Coconut Replanting Programmes in coconut-growing provinces nationwide.
National Planning and Monitoring Minister Sam Basil says it is time to revive PNG’s coconut industry.
Basil urged the 16 leading micro, SMEs that had enjoyed Government support to take the lead with KIK to help PNG become “a world leader in organic coconut products”.
He also urged SMEs to expand beyond the country’s range of high value coconut products, including virgin coconut oil, soaps, cosmetics, deodorants and food products which had been increasing, and into the unexplored potential of products like charcoal, beverages and lumber for furniture.
With a promising outlook, KIK is now reviving its run down coconut plantations, according to the KIK website. And over the years KIK have been rolling out Coconut Replanting Programmes in coconut-growing provinces nationwide.
Research has shown that most of the coconut trees in the country were old and “senile” and the replanting has been receiving support from the Government.The programme is KIK’s initiative and funded by the Government in its yearly budget allocations. The programme, launched in 2016 in Gulf and Central provinces, is now slowly being implemented in the other two coconut growing regions – New Guinea Island (NGI) and Momase.
The objective of the programme is to enable coconut growers to produce quality coconut seedlings for:
- REPLACING “senile” coconut trees in abandoned plantations;
- INTERCROPPING coconuts with other alternative cash crops;
- COCONUT planting to combat climate change impacting on landscape of coastlines;
- PLANTING coconuts in newer areas for food security;
- SUBSIDISE coconut farmers with free coconut seedlings to increase production;
- LAND mobilisation and rehabilitation of coconut plantations; and
- ADOPTING new technology in coconut cultivation and crop diversification.
Coconut nurseries have mushroomed in the majority of coconut growing regions under the KIK programme. The nurseries are established for the coconut farmers with an understanding that all sprouted quality seedlings raised from these coconut nurseries are freely supplied to all coconut farmers.
The coconut nurseries are fully managed by the communities with the KIK coconut development officers providing technical advice and skills.
KIK has also designed coconut downstream processing techniques and systems to enhance production of High-value Coconut Products (HVCP), such as Virgin Coconut Oil (VCO), soap making, therapeutic and cosmetic products, charcoals and desiccated coconut etc.
KIK is hopeful the industry’s full potential would be realised and rebound to be a pillar of PNG’s economy.
The coconut nurseries are fully managed by the communities with the KIK coconut development officers providing technical advice and skills.
KIK has also designed coconut downstream processing techniques and systems to enhance production of High-value Coconut Products (HVCP), such as Virgin Coconut Oil (VCO), soap making, therapeutic and cosmetic products, charcoals and desiccated coconut etc.
KIK is hopeful the industry’s full potential would be realised and rebound to be a pillar of PNG’s economy.
The future of coconuts
TODAY, the top coconut suppliers are struggling to meet the increasing demands of the global economy. Coconut has been a cash crop for decades and, even with stiff competition from other vegetable oils, it promises to continue to be a profitable venture in the future.
Nonetheless, the top global coconut producers must learn from the current situation, and take steps to ensure that their farms are sustainable enough to stand the tests of time and meet future demands.
“Fair Trade” practices in the industry try to ensure that the benefits of the booming sector will trickle all of the way down to small farmers, but they unfortunately keep the production rates rising at a slower rate. Lack of investment in sustaining the coconut-growing land’s productivity, largely due to the high costs associated, mean that some farms are producing 75 per cent less fruit than they did 30 years ago.
The problem of insufficient supply to meet the increased demand is not helped by the fact that many of the trees producing coconuts today are over 50 years old, 20 years past their prime production years.
According to the Asian and Pacific Coconut Community, many plantations across Asia are experiencing zero growth, and some are even ceasing production as their farmers switch their focus to oil palm production.
– worldatlas
Nonetheless, the top global coconut producers must learn from the current situation, and take steps to ensure that their farms are sustainable enough to stand the tests of time and meet future demands.
“Fair Trade” practices in the industry try to ensure that the benefits of the booming sector will trickle all of the way down to small farmers, but they unfortunately keep the production rates rising at a slower rate. Lack of investment in sustaining the coconut-growing land’s productivity, largely due to the high costs associated, mean that some farms are producing 75 per cent less fruit than they did 30 years ago.
The problem of insufficient supply to meet the increased demand is not helped by the fact that many of the trees producing coconuts today are over 50 years old, 20 years past their prime production years.
According to the Asian and Pacific Coconut Community, many plantations across Asia are experiencing zero growth, and some are even ceasing production as their farmers switch their focus to oil palm production.
– worldatlas
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