Friday, March 23, 2012

Coffee export revenue for 2011 hits a historical K927 million

EXPORT revenue for coffee last year reached K927 million - a 78% increase from the earnings of K521 million in 2010 - as production and exports soared to record levels.
Figures released for year ending December 2011 showed coffee production peaking at 1.5 million bags, surpassing the 1.2 million bags reached in 1998.
The 2011 production figures were also significantly high by 69% compared to 883,567 bags in 2010. 
This was attributed to a number of factors including government intervention programmes, expanded smallholder plantings and favorable climatic conditions. 
Exports as usual tracked production and increased to 1.22 million bags from 931,149 bags in 2010, representing a 32% increase.
Overall, this represented an average increase in the export volume of 9% increase over the last six years.
Higher exports reflected increased production, more coffee being moved onto the market as a result of the freight surety scheme and more importantly, grower response to high coffee prices.  
A beaming Coffee Industry Corporation CEO Navi Anis predicted yesterday (Thursday) that coffee revenue would surpass the K1 billion mark in 2012.
“The CIC projects 2012 export earnings to further increase to K1 billion mark based on continued high world market prices, government intervention programs like the District Coffee Rehabilitation and Freight Surety Scheme - which is used to move coffee to markets from the remote and areas of the country,” he said.
 SIL Aviation Cessna 206 loading coffee bags at remote Owena in the Obura-Wonenara area of Eastern Highlands province.-Picture by PAUL GILMA of CIC

“This positive outcome has been due to continued and consistently high world market prices of coffee and the sheer resilience of growers, and important stakeholders in the coffee business.
“Out of the total export earnings, a major portion of 66% was received by the growers while exporters and processors received 19 and 15% respectively.”
“With various plans, government interventions, donor partners/NGOs and stakeholder collaborations and assistance like the World Bank funded Productive Partnerships in Agriculture Projects (PPAP) project, CIC will continue to endeavor to effectively and efficiently deliver research, extension and development programmes to the industry at large for the benefit of coffee industry in the country.”


  1. Mulo Gulluman12:41 PM

    If the government can improve road infrastructure so access is available to coffee growing areas then export earnings can easily grow to K2 billion and upwards annually. If 60% of this goes back to the growers then this is a win win situation...

    Agricultural commodities are a lot better for PNG as earnings go straight back to the rural communities where the crops are grown.This creates real wealth and alleviates poverty!!

    1. John Wali6:52 PM

      I agree with this comment. With Agricultural crops, the money is in the pockets of the farmers. Unlike LNG money, it goes to the Government and there is a cause for concern on how that money will be used given our track records for managing the nation’s wealth.

      I strongly feel the Government just need to close theirs eyes and put all the proceeds of the LNG into building up the depleted infrastructures (roads, wharves, airstrips etc) and allow the subsistent farmers to create wealth for themselves. Especially in the midlands of PNG, good road links are the only way to get these crops to the markets. Airlifting is a short term unsustainable venture.

      That way, 80% of the problems in the villages is solved. The other 20% is to pump money into the depleted health, education and law and order sectors. This is ALL the prayers that every PNG'ans is praying. They are not asking the government to give them cash handouts. This mentality is created by the politicians to suit themselves.

      I remember a W.H.P Premier called Philip Kapal, who ruled W.H.P with iron hand and did not allow his provincial ministers to get their hands onto any money. He has created the WHP provincial engineering unit who went to all the electorates and fixed up every roads, bridges, health centres, school buildings etc. The result? 15 years of excellent infrastructural services and an undefeated leadership at provincial level until he resigned.

      There is something to be learnt from this!!