Bank South Pacific K283.15m net profit

BANK South Pacific posted an after tax profit of K283.15 million for the financial year 2010, The National reports.

The bank also announced that its assets as of December last year were worth K8.655 billion, up 6% from December 2009.

BSP chairman Kostas Constantinou made the disclosure in a financial result submitted to the Port Moresby Stock Exchange.

The bank’s pre-tax profit was K402.10 million, up 6% from K377.96 million posted at the end of 2009.

Constantinou said that emerging from period of some uncertainty into a year that held out some promise of a strengthening global recovery, and some positive expectations about the domestic economy, the BSP Group achieved sound result last year.

He said this was characterised by continued profitability and balance of sheet growth, showing operational and financial stability.

Constantinou said most of the growth was attributed to non-interest income streams following a fall in net interest margins occasioned by a prolonged decline in bank bill rates since late in the second quarter of the year.

The newly-appointed chairman stressed the re-branding of BSP continued to be successful last year with some emphasis given to the appropriate BSP branding of newly-acquired business in Fiji.

He said overall, the group posted well-rounded financial achievement for last year considering that the bank was progressing with major commitments to transform its programmes.

Constantinou said much work had been required on the integration of the newly acquired Fiji business.

“In 2010, there was evidence of a slow strengthening of global economic conditions with large traditional economic powers in North America and Europe showing more sustained recovery trends and the developing high-growth Asian and South American economies continuing to accelerate,” Constantinou said.

“PNG’s economy became increasingly exposed to those global trends as we move closer towards major steps change expected as the LNG project reaches production phase.

BSP was striving to get itself into a position where it would be able to achieve solid performances which would be competitive by global standards under these conditions.

“The 2010 results showed that we continue on track with this objective,” Constantinou added.

 

 

Departments summoned

PAC to haul up below par govt agencies

 

By DENNIS ORERE

 

Members of the Public Accounts Committee (PAC) inspected the Laloki Psychiatric Hospital and the Port Moresby General Hospital yesterday, The National reports.

The PAC is expected to hold inquiries into the Department of Health today and also open inquiries into several government entities.

Tomorrow, the PAC will haul up the worst performing government institutions identified through the inquiries, to explain to the committee why they are unable to improve their performance.

The inspection team yesterday was led by chairman Martin Aini and Bulolo MP Sam Basil.

Chief Secretary Margaret Elias and other senior go­vernment officials from the Prime Minister’s Department and the Department of Health accompanied the inspection team.

At the PMGH, the team visited various wards, asking questions and receiving answers from hospital management and staff members.

Patients with relatives and staff at the hospital reacted in various ways when they saw the team touring the hospital, with some being happy that such an inspection could result in changes to the hospital in the future.

Others just admired the presence of senior government officials at the hospital.

 

North Bougainville polls set for May 14

By STEPHANIE ELIZAH

 

PNG Electoral Commissioner Andrew Trawen has announ­ced March 21 as the date for the issue of writs for the North Bougainville open electorate by-election in the Autonomous Region of Bougainville, The National reports.

It is to fill the vacant seat left by former North Bougainville member Michael Ogio, who is now the governor-general, and is expected to cost the state K2.6 million. 

Trawen, who was in Buka Island last Thursday to meet with the provincial election steering committee on preparations for the 2012 general election, said the by-election would take place as per the time sche­dule set by the commission.

“Following the issue of writs, close of nomination will be on March 28 with polling on May 14 and end on May 20.

“The return of writs will be on June 10,” Trawen said.

Bougainville electoral commissioner Reitama Taravaru said his office was prepared for the by-election.

“We aim to see a peaceful and democratic by-election. Despite the time constraints, I am confident it will progress at a comfortable pace,” Taravaru said.

Preparations by the Bougainville electoral team include training and awareness for groups who will be assisting in the by-election.

They include civil society groups, police, Leitana Wo­men’s Council and United church AIDS council.

“Due to the time constraints in preparing the roll before the issue of writs, we will be using the ABG electoral rolls used in the last election with village assembly clerks assisting to prepare the election roll be­cause of their local knowledge of the area and the people,” Ta­ravaru said.

Six assisting returning officers to be nominated by the PNG electoral commission will be assisting Taravaru, who will be the returning officer for the by-election.

 

 

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Fuel prices up again

By BOSORINA ROBBY

 

FUEL prices for this month will see a big increase led by diesel and kerosene, The National reports.

Consumers in Port Moresby will now have to pay K3.26 for a litre of diesel, a rise of 15t, while kerosene is up 17t to K3.19 per litre.

Petrol, meanwhile, rose by 7t to K3.69 per litre.

Independent Consumer and Competition Commission (ICCC) Commissioner Dr Billy Manoka said given another increase in crude oil prices last month, demand for crude oil continued to reach high peaks in the Asia Pacific region.

However, the trend is heading for a repeat of high fuel prices last felt in July 2008.

Then, Port Moresby experienced the highest ever fuel charges with petrol selling at K4.20 per liter, diesel K4.19 and kerosene K4.

According the ICCC 2008 annual report, domestic prices decreased since August 2008 and this trend was maintained until December 2008.

This period of price reduction is the longest ever experienced in the country and the PNG consumers had benefited from these reductions.

This was due to the fall in crude and refined product prices as a result of a US-led recession which spread to Europe and parts of Asia.

From 2009 through to early this year, fuel and crude oil prices have continued to increase slowly but steadily.

Last month saw crude prices spiking due to political tensions in North Africa and several parts of Middle East.

This has caused crude oil prices to pass US$100 per barrel for the first time since 2008.

Changes in fuel prices are determined by global energy demand and supply and given that crude oil is a globally traded commodity, it is expected that demand and supply determinants in the major regions around the world, the value of the US dollar and other geo-political tensions in oil producing nations will continue to cause prices to change at any time in the future.

Manoka said should the crude oil continued to trade above the US$100 per barrel, then prices would have to be adjusted accordingly.

He said domestic prices would continue to fluctuate in the coming months should crude oil prices continue to trade below or above that mark.

British High Commission launches women’s advisory centre

To coincide with International Women’s Day on  March 8, the British High Commission is pleased to announce a joint venture with Governor Powes Parkop and the National Capital District – the establishment of a women’s advisory centre for Papua New Guinean women.
The project, which is the brainchild of the Port Moresby Chamber of Commerce and Industry, will see the centre providing much needed professional advice for women who seek financial independence through obtaining relevant skills, information and knowledge.
The project, which will be launched tomorrow (March 8,  2011) will fund a support centre and network for PNG women who seek advice on achieving financial independence through obtaining relevant skills, information and knowledge at one convenient location.
The centre will be based in the Port Moresby Chamber of Commerce Office.
British High Commissioner to PNG, Jackie Barson, said the women’s advisory centre would enable women in PNG, where the majority remain educated only to a to a minimal standard, to access professional advice as a means to enhancing both their professional and personal lives.
Barson said the establishment of the centre would also offer women access to information on how to start their own business, manage household finances, how to apply for a loan, statutory requirements of a registered business and basic book-keeping amongst other issues, and it would also offer access to women in business workshops.
She added that it is incumbent on all of us to focus our determination to tackle the discrimination and oppression of women and to step up our progress towards fairness and equality and equal opportunities.
Education is one of the most powerful instruments known for reducing poverty and inequality and for laying the basis for sustained economic growth, sound governance, and effective institutions.
Access to educational opportunities for women will change attitudes, economic circumstances and encourage opportunities for improving women’s social, economic and legal status.
Promoting gender equality and women’s empowerment worldwide is a priority for the UK coalition government.
Where it can, the British High Commission will continue to support programmes which promote the empowerment of women in PNG.
 This is an integral element to the UK’s global commitment to promote human rights, sustainable global growth, alleviation of poverty and democratic values.

Challenges of pig production in Papua New Guinea

By STANLEY AMBEN of NARI

Cross-bred pigs at Lennie Aparima’s pig farm at Munum village, Morobe province

Pork meat has been an important protein source for many generations of Papua New Guineans and continues to be so in many parts of the country.
However, supply of pork meat is still low.
Local commercial suppliers of chilled pork meat are unable to meet the high demand.
This is evident with the import of additional quotas of chilled pork meat.
On the other hand, the larger informal live pig market may also be facing shortages in meeting demands, with reports of live pigs selling at K1, 000 – K3000 in the highlands during the 2010 festive season.
These pigs are generally from native and cross bred origins and farmed with limited input. Information on this sub-sector is limited as past efforts were mostly focused on commercial breeds.
The National Agricultural Research Institute (NARI), in its effort to improve smallholder productivity through sustainable pig farming practices, conducted a baseline survey of smallholder pig production in the Morobe province to identify constraints and opportunities for further research and development.
The survey covered the Markham, Wau-Bulolo, Huon Gulf, Nawae, Tewai-Siassi, Finschhafen and Kabwum districts.
Pig farming is a labour intensive activity depending on the number of pigs per household. Therefore, a valid assumption would be the more pigs per household, the more labour input needed to sustain increased herd numbers.
However, this assumption does not hold true as the survey noted that household size had no influence on herd numbers.
This is attributed to the traditional low input practice of scavenging where pigs are left to fend for themselves.
Despite the predominantly low management input associated with traditional practices, the current trend is showing that farmers prefer to keep their pigs enclosed.
Due to increasing population densities and shortage of arable land, growing of food crops has intensified.
Scavenging pigs poses a threat to food gardens.
Some areas surveyed have enforced village laws to keep pigs enclosed.
This situation is forcing farmers to adopt the ‘highlands’ practice of tethering pigs.
Enclosed pigs require the farmer to provide all necessary inputs for its welfare.
Survey results show that the standard approach in feeding pigs comprises of starchy staples sourced from food gardens.
Farmers are content with this approach assuming that both feed and water is provided.
However, problems arise with this approach as protein and water requirement for pigs are not being adequately met.
As a result, the farmers have been observing a decline in the growth performance of their enclosed pigs and bluntly request for ‘marasin’ or medication alluding to protein supplements. Similar needs are expressed for fencing materials.
It was also noted that farmers in accessible districts rarely invest in pig production despite reporting good returns from selling their pigs.
Obligations such as school fees took higher precedence with income generated from the pig sales.
Pig farmers need more awareness on opportunities for improving their current production systems.
Economic modelling of improved pig farming systems can motivate and encourage farmers to enhance and sustain their production.
Most farmers surveyed keep crosses of native and exotic lines to capitalise on the hardiness and low input requirement of the native breed and the faster growth rate of exotic breeds.
However, a higher level of input in feed and management is needed for these crossbred pigs to be profitable.
Furthermore, farmers perceive their pigs to be suffering from serious ailments.
However, PNG is largely free from major contagious pig diseases apart from common ailments such as diarrhoea and the common flu associated with poor management practices.
Pig farmers in the Morobe province are being encouraged to emerge from the low input level of production into a more market-orientated production system where there they have reinvest from income generated from pig sales.
This is the case with two pig farmers from the Situm area outside Lae.
These farmers currently manage a breeding herd of about 50 pigs each, consistently producing live pigs for the informal market.
The pigs are fed with on farm-formulated feeds using agricultural by-products.
There is a lot of capital investment in terms of feed, housing and labour.
This higher level of production has been reached by the pair due to consistent investments back into their farms from the income generated from the sale of pigs.
A previous scheme initiated in the area by the Pelgens Smallgoods Company, whereby local farmers obtained weaned piglets from the company and raised to supplying the abattoir, has been unsuccessful.
This scheme needs some improvement based on previous experiences as a similar concept has been successfully implemented by Niugini Tablebirds with broiler chickens.
Improved technologies in pig feeding and management for enclosed pigs are required by the smallholder pig farmers in Morobe province.
They may not be alone; this is the situation for farmers’ country wide.
With proper management practices and formulating pig feeds using locally available resources would go in a long way to help increase pig production.
NARI has developed a pig feed using sweet potato tubers and leaves which was officially released to the farming community last May for adoption.
This is among other technologies on livestock feed that NARI is developing using locally available sources taking into consideration the increased cost of commercial feeds.
It is hoped with such technologies available, farmers will increase livestock production for their own consumption as well as for income.

Rice research and development

By JAMES LARAKI of NARI

Rice is the second most important cereal in the world and staple food to about two billion people.

Rice germplasm evaluation field at NARI Bubia, outside Lae

Production is geographically concentrated in Western and Eastern Asia with more than 90%of world output. China and India, which account for more than one-third of global population, supply over half of the world's rice. Brazil is the most important non-Asian producer, followed by the United States. Italy ranks first in Europe.
Although rice is not a traditional crop to Papua New Guinea, it has been cultivated for over 100 years and has become a staple food to many people, with an estimated consumption of over 300,000 tonnes per annum.
Rice and grains have emerged strongly during the post-war era in PNG.
It has now become prominent in the household food basket, thus contributing a significant part to national nutrition and calorie requirements.
Despite its popularity, almost all the rice consumed in PNG is imported.
Importing rice is one of the most-contentious food policy issues in PNG. Commentators have suggested that the local population is becoming too reliant on imported rice.
These concerns prompted policymakers in the 1990s to set an ambitious target to produce approximately 50,000 tonnes by the end of the decade.

NR 1- 'C Fields'

Despite these goals, rice production in PNG has made little progress.
The estimated 10,000 tonnes produced is not sufficient to meet the growing demand. The scale of production has been limited by various technical, sociological, economic and institutional constraints.
PNG’s shifting farming systems, labour intensity and productivity, pests and diseases, have become major contraints.
These have been compounded with lack of continuous supply of pure seed, appropriate milling facilities, and lack of information and training.
The National Agricultural Research Institute (NARI) has been active in promoting rice and grains development through scientific research since 2001 when all rice and grains research was transferred from the Department of Agriculture and Livestock (DAL).
Research on rice and grains is aimed at addressing issues of food security and self-reliance with opportunities for people to participate in national development of rice production, distribution and consumption.
NARI rice and grains project takes heed of smallholder rice production using new and improved knowledge, information and technologies derived from scientific research under PNG conditions.
The current focus of NARI rice and grain project is on introduction and evaluation of upland rice varieties to contribute to improved productivity, quality and quantity of production.
Most of PNG’s local rice production is taking place in remote areas like Finchhafen and Garaina in Morobe, Maprik in East Sepik and inland Bougainville.
Therefore, it is necessary to have a number of varieties available for farmers at any given time that are high-yielding under low input, resistant to important pest and diseases, good eating qualities spread over diverse agro-ecological conditions.
In May 2006, NARI released four rice varieties to the PNG farming community (NARI Rice (NR) 1, NR 9, NR 15 and NR 16) suitable for upland production in the lowlands.
With a total of 1100 varieties obtained from the International Rice Research Institute in its germplasm collection, the project is identifying varieties that can stand out and suit a wide range of environments in PNG.
In some rice growing places such as Finschhafen and Garaina, growers have selected and maintained suitable landraces from earlier introductions.
“Waria Sunlong” of Garaina and Waria valley, and “Finsch Brown”, “Sukong Turung”, and “Finsch White” of Finschhafen are some examples.
Supply of good quality seeds is vital for rice production in the country.
Currently, the supply of rice seeds is coordinated by DAL.
Seeds of NARI rice varieties are distributed from NARI regional centres and can also be sourced through provincial DALs.
With annual import bill running into millions of kina, efforts to reduce import dependency remain a major challenge.
These efforts are being aided by various overseas governments, aid agencies and NGOs.
The government’s efforts are manifested in DAL policy document: ‘Papua New Guinea Rice Development Policy 2004 – 2014’.
This document is the successor to the National Rice Policy of 1998.
The latest policy document recognises the importance of rice as a staple food for the people of PNG and proposes a range of policy and programme interventions to provide a clear policy environment to mobilise resources to promote sustainable domestic rice development.
It provides a framework for partnership between the government and its development partners and donor agencies to support the domestic rice development.
Attempts to achieve self-sufficiency in domestic rice production over the years have had limited success, although it is a proven fact that rice can be grown in PNG. Despite renewed interest and recent reports of a surge in rice cultivation by local farmers throughout the country, domestic rice production is still remains minor and highly local.
This calls for coordinated efforts to review the factors which hinder domestic rice production in the country. Issues on access to rice milling facilities, shortage of trained personnel, technical support and credit facility, poor infrastructure and market access, continuous supply of pure seeds, information and support services, quality of locally-grown rice, and other contributing factors need to be addressed.
Research and extension support also need to be strengthened and supported to drive rice development in PNG.
Rice development needs to be promoted to the farming community for food security, income opportunity, and improved living standard of the rural population.

NR 1- 'C Fields' (before flowering)