‘Six-month farmers’ are a big problem in Papua New Guinea’s coffee industry Tom Kukhang, the Coffee Industry Corporation’s Chief Scientist, tells Business Advantage PNG. But there is a solution.

Coffee roasting. Credit: Pacific Islands Trade & Invest.

While it is is among the world’s top 20 coffee producers, PNG boasts the ideal environment to create an even more significant coffee industry. It has excellent soil, rainfall and the right climate. Yet, according to the Coffee Industry Corporation’s (CIC’s) Kukhang, while the potential is outstanding, the industry remains challenged by what he calls ‘six-month farmers’.

‘These farmers are only committed to the crop during the harvest period, when they can take advantage of sales.

‘If farmers work together the consistency of the crop improves.’

‘They are not committed to making a living from the crop. This is because they often receive low prices when they sell their coffee to the exporters,’ Kukhang says.

The bulk of PNG’s coffee exports are current bought by four major European coffee vendors, which produce coffee blends for mass consumption.

Strategy

The Coffee Industry Corporation has implemented a strategy of mobilizing farmers into groups in an attempt to address farmer’s concerns about low prices.

PNG coffee scientists Tom Kukhang, Dr Mark Kenny, and Dr Nelson Simbiken. Credit: Malum Nalu.

If farmers work together, the consistency of the crop improves; it is a strategy that provides the growers with larger crop volumes, putting them in a stronger position to negotiate the sale price with the exporter.

‘When they go as individuals to the roadside or market to sell their coffee, they have no power. The Coffee Industry Corporation’s approach to mobilise the farmers is a good strategy.’

Kukhang says eventually the grower co-ops will allow the farmers to deal directly with small roasters throughout the world, removing the ‘middle man’.

‘This is one way of getting the farmers to receive some good income, which will keep them interested in growing coffee and committed to the crop.’

Standards

Kukhang says the market demands quality coffee and consistency from growers. Raising the standard of Papua New Guinean coffee is accordingly fundamental to the success of the industry.

One way is to mobilize the farmers to work together using a minimum standard. This will ensure they produce quality coffee that the market can rely on, Kukhang explains.

‘The Coffee Industry Corporation must work harder to support smallholder coffee growers.’

In line with the Coffee Industry Corporation’s strategy, the World Bank is seeking to improve the livelihoods of smallholder farmers through its Productive Partnerships in Agriculture Project for Papua New Guinea.

David Freyne,  former General Manager for Research on the Coffee Industry Corp (CIC) Board and former Project Manager for the Productive Partnership in Agriculture Project PNG  (PPAP), says the program provides farmers with the support they would not otherwise receive.

Freyne says the extension officers, whose role it is to provide farmers with technical advice, are in urgent need of training. He believes the Coffee Industry Corporation must work harder to support smallholder coffee growers.

‘Because farmers have limited technical and management skills this poses significant challenges.’

‘A lot of extension officers don’t go to see the farmers and the Coffee Industry Corporation’s systems work against them rather than assisting. The result is that many just don’t do any work,’ Freyne says.

Promotion

Infrastructure in Papua New Guinea continues to deteriorate and, because farmers have limited technical and management skills, this poses significant challenges for the coffee industry.

‘We need to do a lot more promotion of Papua New Guinean coffee in Australia.’

Kukhang says the Coffee Industry Corporation must support farmers by providing them with technical advice and the resources to manage their businesses. He says promotion of smallholder farmers and their crop to overseas markets should be a priority for the Coffee Industry Corporation.

‘Australia is one of the best coffee markets in the world. We need to do a lot more promotion of Papua New Guinean coffee in Australia,’ Kukhang says.

Both Kukhang and Freyne agree the industry has a long way to go when it comes to providing the necessary training, achieving consistently good quality coffee and changing farmers’ attitudes.

“Consistency is what the market wants,” Kukhang says.