Bombshell! Department of Agriculture and Livestock 'incapable' of running agriculture in PNG

Vice Minister for Agriculture and Livestock Jimmy Simitab  admitted at the National Development Forum in Port Moresby last Thursday  that the Department of Agriculture and Livestock is no longer capable of running agriculture in Papua New Guinea.

Mr Simitab dropped the bombshell in his presentation to the forum, which focuses on ‘Opening up opportunities for agriculture and rural development’.

He made a frank admission that DAL was incapable of running the much talked about National Agriculture Development Plan (NADP) and all overriding functions should be taken over by the National Agriculture Council.

The minister recommended the establishment of the NAC as the apex body in agriculture be given high consideration by the forum and the Consultative Implementation Monitoring Council.

Mr Simitab said one of the most-important recommendations of the Public Sector Review and Monitoring Unit (PMRSU) in 2005 was an overhaul of the DAL; however, this had not been implemented over the last five years.

“The findings of this review remain unimplemented, hitherto, the sad state of affairs in DAL over the last five years,” he said.

Mr Simitab said it was perceived that the NAC, once legislated, would recognise existing commodity and statutory bodies, with overriding powers to maintain and sustain the NADP.

“In fact, the National government, in approving and adopting the NADP in March 2007, had directed that a further institutional and legislative reform be undertaken to improve the management of the sector with NADP,” he said.

“Given the state of reforms that have occurred in agriculture to this point, it is obvious that DAL is neither a capable nor an appropriate ‘lead agency’ without an entity such as NAC as its apex body.

“The suggestion that NAC be chaired by the Minister for Agriculture and Livestock, with membership of no more than 10 people appointed by the Head of State on advice, has great merits, on a number of fronts.

“First, it will act independently of all agencies of the sector, and has links to DAL only for policy and technical guidance.

“Secondly, it will establish its own sub-sectoral liaison mechanisms to capture development resource requirements of each sub-sector as well as from each district, for budget purposes and for monitoring and evaluation.

“Thirdly, the entity shall provide a one-stop-shop for investors, and coordination of donor support for agriculture.

“Finally, it shall provide an effective mechanism for the policy coordination of the sector, and the management of annual fiscal support for agriculture through NADP.”

Mr Simitab said the concept of an ‘agricultural council’ being an apex body for the sector was not a foreign concept as it had already been practiced in several emerging Asian economies, including Taiwan and South Korea.

 

 

 

 

 

Happy birthday to me!

It's my birthday today and my four children Keith (2), Moasing (4, the only girl), Gedi (7) and Jr Malum (8) threw a party for me at home last night (pictured).
Great fun for all of us, with lots to eat and drink,  albeit bittersweet, as their Mum, my dear wife Hula, wasn't around to celebrate with us.
We all love and miss her so much.
We have all, however, come to accept that she will no longer be with us,and we have to live for the future and not dwell in the past.
Thank you to all those wonderful people from around Papua New Guine and the world who have sent their birthday wishes to me.

Malum

Time for change is now (please click to enlarge)

InterOil announces June quarter profit

InterOil Corporation has announced a $US9.4-million operating profit for the quarter ending 30^th. June 2009.

Chief Financial Officer Collin Visaggio says the result is “most encouraging” given the state of the world economy.

“Commodity prices eased during the period and this has had a negative effect on businesses such as ours.

“So to post a profit against this background is particularly satisfying”, he said.

“On this basis we are confident of a strong and vibrant future for all segments of our business.”

The company’s debt-to-capital ratio underwent a dramatic improvement during the quarter.

“It now stands at a very healthy 13%, compared to 43% in the same quarter of 2008”, Mr Visaggio said.

“This gives us a great base to work from and will help ensure our strength, particularly in these difficult economic times.”

InterOil’s midstream refining business segment posted a $US9.6-million profit for the period on a refinery throughput of 21,574 barrels per day (average).

The midstream liquefaction segment had a $US1.8-million loss which was InterOil’s share of expenses incurred in the PNG LNG joint venture project.

“These expenses are a necessary investment in the future of not only our company but also of the entire nation”, Mr Visaggio said.

Downstream (distribution) returned a $US1.7-million profit on a total sales volume of refined product of 140-million litres.

The downstream profit was about half that for the June quarter 2008 and reflected the worldwide decline in commodity prices.

 

For further information please contact

Susuve Laumaea

Senior Manager Media Relations InterOil Corporation

Ph: (675) 311 2796

Mobile: (675) 7201 3870

Email: slaumaea@digicelpacific.blackberry.com  

 

Fuel prices fall for August

Retail fuel prices have fallen throughout Papua New Guinea for the first time in six months.

Gasoline and kerosene is more than five percent cheaper than it was last month and diesel is down four percent.

InterOil President Bill Jasper said the lower domestic prices reflect an easing in demand internationally.

“Again we see how local fuel prices are determined by the global market,” he said.

“This month there are two main factors at work.

“Firstly there has been an easing of demand in the United States despite it being the holiday driving season which normally sees a sales spike.

“Further, oil production and delivery from the rich Nigerian oil fields in Africa has stabilised during recent weeks”.

International crude oil prices have fluctuated during the month from around $US63 a barrel in the first half of the month to around $US72 of recent days.

“The fluctuations are between ten and fifteen percent over relatively short periods.

“This indicates the international marketplace is in a state of flux as the world begins showing signs that we may be emerging from the global financial crisis”, Mr. Jasper said.

“The price of crude oil and refined fuels has been on a wild rollercoaster ride for the past year.

 “Just 12 months ago crude was selling for almost $US150 a barrel, it then collapsed in line with a slump in international demand.”

The reduction in domestic fuel prices this month comes despite an increase in crude oil prices.

Mr Jasper said that all refined fuels are currently “very affordable” by historic and international standards.

“And that, in these trying economic times, is positive and welcome news”.

 

For further information contact

Susuve Laumaea

Senior Manager Media Relations InterOil Corporation

Ph: (675) 311 2796

Mobile: (675) 7201 3870

Email: slaumaea@digicelpacific.blackberry.com  

 

Kanua lashes out at NADP, DAL

THE National Government’s National Agriculture Development Plan (NADP) has come under fire at a development forum in Parliament today.

A number of speakers at the Consultative Implementation Monitoring Committee (CIMC) forum questioned where the funds for NADP in the last two years were and what the programme had achieved.

Former Department of Agriculture and Livestock Mathew Wela Kanua fired a broadside at the NADP as well as the Department of Agriculture and Livestock, which he formerly headed, saying that it should be abolished.

In a no-holds barred comment at the CIMC forum, Mr Kanua said it was the overwhelming feeling of the agriculture sector that it was getting nowhere, despite the massive K1 billion to be poured into the NADP over the next 10 years at K100 million annually.

Mr Kanua, who was outspoken in his fight against corruption at DAL during his tenure as secretary, also bluntly told the forum that the DAL should be abolished as it was unproductive.

“It is worrying and it is sad that we are getting nowhere,” Mr Kanua said.

“It seems to be an overwhelming concern from the agriculture sector that we are getting nowhere.

“What are we going to show for the K1 billion?

“What are we going to have in 10 years time to show for it?”

Mr Kanua, who is now employed by PNG Sustainable Development Program, said this money should be spent in partnership with the private sector to grow agriculture in PNG.

“That was the reason why we created the National Agriculture Development Plan,” he said.

“When I left the department, I said that it should be closed, because it was completely incapable.”

Australia-PNG Business Council president and Trukai Industries managing director Phil Franklin, who spoke at the forum, also spoke of PNG farmers not feeling the impact of the NADP.

“Farmers in PNG are like farmers anywhere in the world,” he said.

“They want to have money in their back pocket.”

He said the NADP was a very good concept which would combine government and private partners in developing the agriculture sector, but people are now wondering that had become of it.

 

Papua New Guinea coffee industry not stagnant

Coffee Industry Corporation chief executive officer Ricky Mitio says the industry in Papua New Guinea is “not stagnant and moving sideways”.
He said this after a presentation by PNG agriculture expert Dr Mike Bourke, who said in his presentation to the National Development Forum today that prospects for coffee in PNG were “poor to average”.
“We acknowledge that there is no growth in production trends,” Mr Mitio said.
“CIC’s strategic plan is to address the dilemma of growth stagnation by introducing high value specialty coffee as the way forward because of high returns on this specialty and organic coffee exports.
“Specialty coffee makes up 5-6% of the global market right now.
“The specialty market is just growing and PNG has to get on this bandwagon.”                                                                                                                                                                            Picture above shows high quality PNG coffee products