CICL Unveils Major Reforms to Boost PNG’s Coffee Industry

Port Moresby, 6 March 2025 – The Coffee Industry Corporation Ltd (CICL) has outlined an ambitious plan to revitalise Papua New Guinea’s coffee industry, focusing on increased production, price stability, farmer support, and infrastructure investment.

 

Speaking at a high-level agriculture meeting on Tuesday, March 4, 2025, officiated by Prime Minister Hon. James Marape, CICL Chief Executive Officer Charles Dambui detailed the corporation’s 2024 performance and 2025 targets, aligning with the Medium-Term Development Plan IV (MTDP IV) and PNG’s Vision 2050.

 

Mr Dambui emphasised the importance of coffee as a national crop, grown in 19 provinces, and reaffirmed CICL’s commitment to improving production, expanding exports, and strengthening farmer support initiatives.

Mr. Charles Dambui

 

Coffee Industry Performance and Trends

 

·       PNG’s coffee production peaked in 2016 but dropped to record lows in 2020.

·       Since 2021, production and exports have steadily increased.

·       2024 saw a significant boost, surpassing one million bags of coffee exported.

·       Price increases and improved farmer access to markets were key influencing factors.

·       Freight Subsidy Scheme (FSS) contributed 4% of total exports by bringing coffee from remote areas to market.

 

Key 2025 Targets Under MTDP IV

 

The CICL’s 2025 investment programme focuses on six priority areas:

 

1.       Large Plantations Rehabilitation Programme

·       K25 million allocated in the MTDP IV budget.

·       Target: 31 plantations to be rehabilitated.

·       2024 progress: 81 submissions received, MOAs signed with 13 plantations, and work commenced on seven.

 

2.       Coffee Commodity Roads Programme

·       K10 million allocated for 2025.

·       Target: 20km of roads to be built or upgraded.

·       2024 achievements: Completed construction of key access roads and footbridges, including:

o   Minimbi to Maril Footbridge (42m)

o   Kukpa-Bilu Footbridge (117m)

o   Omuru Station Road (5.2km)

o   Panga Road (1.2km)

o   Aiyura Station Road (817m)

 

3.       Downstream Processing & Exports Support Programme

·       K40 million allocated under MTDP IV, with K5 million for 2025.

·       Target: Two new international-standard coffee processing plants to be operational.

·       2024 achievements:

o   Three indigenous processors supported in Eastern Highlands, Morobe, and Simbu.

 

4.       Price Stabilisation Programme

·       K10 million allocated for 2025.

·       Target: Launch the "Green Gold Card" system for direct farmer payments.

·       2024 progress: IT company engaged to develop the database and payment system.

 

5.         National Coffee Development Programme

·       K30 million allocated for 2025.

·       2024 progress:

o   2.59 million coffee seedlings planted.

o   113 hectares rehabilitated and 321 hectares newly planted.

o   87 coffee grower groups supported, with exports to Dubai, South Korea, and Melbourne.

 

6.       Coffee Freight Subsidy Programme

·       Target: 100,000 tonnes of coffee to be airfreighted in 2025.

·       2024 performance:

o   382 tonnes airfreighted and 106.3 tonnes shipped by sea (total: 488.2 tonnes).

o   GoPNG funding K394,653.00 used for logistics with NASL, MAF, AAS & LSS.

 

Introducing the "Green Gold Card" System

 

A major highlight of CICL’s reform agenda is the Green Gold Card system, which aims to streamline payments and ensure direct benefits for farmers.

 

Key features of the system:

 

·       Direct payments to registered farmers, reducing exploitation by middlemen.

·       QR-coded records for greater transparency and accountability.

·       Prevention of fraud through unique farmer registration and expiry dates.

·       Encouraging fair trade certification and higher coffee quality standards.

·       Linking farmers to bank accounts to promote financial inclusion.

 

“The Green Gold Card system will ensure that funds reach genuine coffee farmers directly, making the industry more transparent and efficient,” Mr Dambui stated.

 

Legislative and Policy Reforms

 

To ensure long-term sustainability, CICL has been working on key legislative and policy reforms:

 

·       National Coffee Policy – Approved by NEC Decision #326/2024 on 18 December 2024, and scheduled for launch at the end of this month.

·       Coffee Industry Act 2024 – Drafting instructions completed and awaiting clearance from Treasury and the Office of State Solicitor before submission to NEC.

 

“These reforms will provide the legal foundation for a more structured and efficient coffee industry,” Mr Dambui said.

 

Prime Minister Marape Backs CICL’s Vision

 

Prime Minister Hon. James Marape commended CICL’s efforts, reaffirming his government’s commitment to strengthening the coffee sector as part of PNG’s broader agriculture-led economic strategy.

 

“The work being done by CICL aligns with our national vision of making PNG a leading coffee producer in the Pacific. My government will continue supporting these initiatives to drive economic growth, job creation, and rural development,” PM Marape said.

 

He urged all stakeholders – including provincial governments, private sector partners, and international buyers – to collaborate with CICL in achieving its 2025 targets.

 

“Our focus remains on empowering smallholder farmers, ensuring fair pricing, and improving market access for PNG’s premium coffee,” he added.

 

A Promising Future for PNG Coffee

 

With strong government backing, strategic investments, and a focus on farmer empowerment, PNG’s coffee industry is on track for significant growth.

 

CICL’s 2025 roadmap aims to:

 

·       Expand coffee plantations and processing facilities.

·       Improve market access through road infrastructure.

·       Ensure better prices for farmers through direct payments.

·       Strengthen exports and partnerships with international buyers.

 

“The coffee sector has immense potential to contribute to PNG’s economy. With the right support and commitment, we can make PNG a global leader in premium coffee exports,” Mr Dambui concluded.

 

ENDS