Papua New Guinea a ‘star performer’ with 7.1% GDP growth

 

By BOSORINA ROBBY

 

PAPUA New Guinea has been identified in a United Nation-sponsored survey to be the star performer among the Pacific Islands' economies with a 7.1% GDP growth last year, compared to 5.5% in 2009, The National reports.

The report titled "Asia-Pacific economies face fresh challenges to sustaining dynamic growth of 2010" , which was launched yesterday, was conducted by the UN Economic and Social Commission for Asia and the Pacific (ESCAP).

It stated that PNG was one of three economies in the Asia-Pacific region to record improved GDP growth performance, with most of the other islands virtually stagnating.

UN resident coordinator Dr Bertrand Desmoulins, who presented the report to the Bank of PNG's acting governor Benny Popoitai, highlighted other results of the survey, including challenges the region would face this year.

With 8.8% growth last year, the economies of Asia-Pacific recovered strongly from the global financial crisis in 2008-09 but challenges facing them now include the return of the food and fuel price crises, sluggish recovery in the advanced economies and a deluge of short term capital flows leading to volatility in capital markets, asset bubbles and appreciating exchange rates.

The report stated that PNG's strong economic growth was a result of good higher commodity prices from strong demands of oil, gold, copper, coffee, cocoa and palm oil, and also from the LNG project.

It, however, warned of the high inflation rates that would occur.

Desmoulins said while overall, there was deceleration in inflation in some major Pacific Islands' developing economies, PNG recorded the highest inflation rate in this region at 6% last year.

The report further revealed that PNG was expected to lead the growth of the Pacific Islands' economies of 2.4% with an 8% growth this year, boosted by rising commodity prices and growth in domestic demand coupled with acceleration in investment in the LNG and several mining projects.

However, the resource boom needed to be well managed so that rapid economic expansion does not translate into continuously high inflation.

Desmoulins stated that the government was encouraged to translate the funds from the resource boom into social benefits, especially for the most disadvantaged and vulnerable population groups.

The report identified that the ever-present challenge for the Pacific Island developing economies, including PNG, was to diversify their economies, having been seen now as the growth driver and anchor of stability of the global economy.

‘Inmates were forced out’

By JUNIOR UKAHA

 

THE 90 escapees who were "forced to escape under the gun-barrel" from the Bui-Iebi prison in Mendi, Southern Highlands, by an armed gang in the early hours of Wednesday morning were believed to be heading in two separate directions, Correctional Services Commissioner Richard Sikani said, The National reports.

He said one group, allegedly led by Paul Rambo, a local from upper Mendi and the inmate who stole a police vehicle, was heading towards upper Mendi and further towards Tari, Koroba, Margarima and Kutubu in the Hela region.

He said the other group was led by Peter Hena from Pangia, who was jailed for murder, and was heading towards the eastern end of Mendi, aiming for Kagua, Pangia and Mt Hagen.

Sikani said the group led by Rambo were suspected to be keeping all the arms and ammunition that had been stolen from the CS armoury in Bui-Iebi.

A source from Bui-Iebi jail said the CS jail commander, Felix Namane, and PPC Teddy Tei went on-air on radio at 7pm on Wednesday to appeal to the people of Mendi and Southern Highlands not to harbour these criminals and to report them to police.

Supt Tei gave a seven-day ultimatum to the gang to return all the stolen weapons and for the escapees to voluntarily surrender to police and CS officers.

Sikani said no escapees had been recaptured except the one who was picked up by his men and police near Kiburu Lodge Junction in Mendi.

He said no arms had been recovered thus far and he appealed to the community leaders to help recover the weapons.

He said around 60 men were engaged in the recapture operation, with 15 men from the local CS command and 40 officers from the Mendi riot police.

A source said Highway Patrol 17 of Kaupena, in Ialibu, had been notified of the escape and were monitoring the highway along Western Highlands-Southern Highlands border at Kaupena.

The source said the escapees were dangerous criminals and included men who were serving time for robbery and rape.

One of them was jailed for attempting to set fire to a company's helicopter.  

Price war on rice begins

By BOSORINA ROBBY

 

DESPITE 19 brands of rice being available locally, the price of this staple has not fallen, the Independent Consumer and Competition Commission said, The National reports.

It said, instead, rice prices had risen in most urban and semi-urban households, which, in most cases, was rice supplied by Trukai Industries Ltd, the main distributor and miller.

An ICCC report stated that the declaration of Trukai's Roots Rice to be price-monitored was because that brand "is traditionally consumed by low to middle income earners and is currently the leading brand in the market".

"Any price changes would lead to price increases on other rice brands."

The report said the setup of other companies had not led to a fall in prices of the Trukai brand.

It said prices had increased to match the price imposed by Trukai.

ICCC commissioner and chief executive officer Dr Billy Manoka told the Ekonomics Society forum that the increasing competition in the rice market had not translated into falling retail prices for consumers in recent years.

He said the ICCC "is maintaining a vigilant eye for collusion among wholesalers and importers".

He said the ICCC moved away from direct price control to factory gate price monitoring of rice, flour and sugar in the mid-2000s as there was some sort of competition.

"However, competition does not appear to be working as we view that retail prices have continued to increase over recent years not withstanding falling factory gate prices for some of these products".

"The commission has commenced monitoring the wholesale and retail prices of all brands apart from the factory gate prices of the products that are milled in PNG," he said.

An online survey into 32 consumers' buying power revealed that despite being expensive, Trukai has always been the trusted brand for them (12/32) and they kept on buying it, preferring its taste and quality.

Nine respondents preferred the Trukai Jasmine rice because it is cheaper than the other Trukai brands and tasted better, offering a healthier choice to Roots Rice (8/32) while three chose to buy Brown Rice and other rice brands.

Showtime tomorrow as NARI celebrates 14th birthday

Caption: School children being shown analytical services provided by NARI at last year's innovation show.

 

By JAMES LARAKI of NARI

 

The PNG National Agricultural Research Institute (NARI) turned 14 years old on Monday.

Fourteen years on, NARI has been in the forefront, promoting and undertaking agricultural research for sustainable development.

The institute has made dedicated contribution to innovative agricultural development in the country through scientific research, knowledge creation and information exchange.

During this short period, the institute has been recognised nationally and internationally as the leading research organisation of high development relevance to Papua New Guinea.

To commemorate its 14^th anniversary, the institute is hosting an 'Agricultural Innovations Show' at the Sir Alkan Tololo Research Centre, 10 Mile – Bubia, outside Lae, tomorrow.

Director-General Dr Raghunath Ghodake said the event was organised around the theme "Investing in Innovative Agriculture for Prosperity".

Dr Gohdake said the theme reaffirmed NARI's view that progress through innovative agricultural development was essential if PNG was to realise Vision 2050 and become a wealthy and prosperous nation.

"The nation has the need, great potential and vast opportunity to prosper through innovative agriculture, and hence the focus on investing in innovative agriculture," he said.

"The theme is in line with NARI's efforts in encouraging consistent investment in agriculture, particularly in research, to develop technologies and innovations which are crucial agents in innovative agriculture and rural development.

"With the economy projected to grow at 8.5 % and the LNG and other related projects coming on stream, PNG has a more favourable environment and opportunities now than ever before for all stakeholders to make positive contribution to innovative agricultural development in general, and to research, science and technology, in particular."

Since its inception in 2007, the agricultural innovations show has become a popular annual event to recognise and value the importance of innovations in agricultural development, and create and promote awareness on the significant role of research, science and technology in innovative agricultural and rural development.

Minister for Higher Education, Research, Science and Technology Paru Aihi will be the chief guest while the guest of honour will be Morobe Governor Luther Wenge.

On the occasion of the 14^th anniversary, Dr Ghodake acknowledged the invaluable support from the government of PNG, AusAID, European Union, the Australian Centre for International Agricultural Research (AVIAR) and key collaborators and partners locally and abroad.

European Union project workshop at NARI

Caption: Participants of the workshop at the Sir Alkan Tololo Research Centre – Bubia, outside Lae.

 

By JAMES LARAKI of NARI

 

An inception workshop is underway this week at the National Agricultural Research Institute headquarters in Lae to develop and plan activities of a mega project to be implemented in three Western Pacific countries.

The European Union (EU) -supported project "Generation and adaptation of improved agricultural technologies to mitigate climate change-imposed risks to food production within vulnerable smallholder farming communities in Western Pacific countries" is implemented by NARI in partnership with the Ministry of Agriculture and Livestock (MAL), Solomon Islands, Department of Agriculture and Rural Development (DARD), Vanuatu and the University of Natural Resources and Applied Life Sciences (BOKU) of Austria.

Action coordinator Dr Workneh Ayalew said the inception workshop indicated the start of the implementation phase of the project after it was officially launched in Port Moresby in March this year.

Dr Workneh said the objectives of the inception workshop were to: apprise participants of the planned project activities; canvas opinions of key stakeholders on the major activities and on selection of suitable target communities; and affirm list of activities to be undertaken during year one of the project.

Dr Worknew, who is also in charge of the livestock component of the project, said the workshop was expected to create common understanding among key stakeholders on the objectives, major activities and expected results of the project, and administrative arrangements.

"It also expected to collate background and baseline information about target communities and related actions," he added.

The project, which comes under the EU science and technology programme, is to mitigate climate change risks associated to food security and livelihoods for vulnerable smallholder farming communities in the Solomon Islands, Vanuatu and Papua New Guinea.

It is aimed at improving food production capacity of smallholder farming communities in the three countries, where climate change-induced problems are becoming significant threats to agricultural production and productivity.

The main focus of this project is to identify appropriate types of water technologies and alternative crops/crop varieties and livestock/livestock feeding systems to help sustain and improve food production under drought, excess precipitation and saline soil conditions.

The project, to be implemented over a five-year period, will cover 11 vulnerable sites in the three countries, covering about 100 households per site.

This will eventually lead to about 2.4 million smallholder crop-livestock mixed farmers.

More than 20 participants comprising representatives from the Delegation of EU to PNG, NARI, MAL, DARD, Boku, World Vision Pacific development group and community representatives are in attendance.

Similar workshops are planned to be held in the Solomon Islands and Vanuatu this month to start the implementation phase of the project in these countries.

Importance of training in food safety standards

By SOLDIER BURUKA of DAL

 

Papua New Guinea needs to strengthen its efforts in promoting food safety standards and improving its level of compliance to sanitary and phytosanitary measures.

Like other developing countries, PNG is facing increased challenges due to globalisation and a competitive international environment and must work with relevant international bodies that govern international safety standards.

This was the message given to participants attending a training program on the quality management system auditors and basic tools for food safety.

The training is the first of its kind and has attracted participants from various organisations from the private and government sectors.

In a speech delivered on behalf of Department of Agriculture and Livestock (DAL), the director for science and technology branch, Ian Onaga, said as PNG geared up for trade liberalisation, it needed to adjust to cope and respond proactively to challenges of globalisation and follow suitable trade protocols.

Onaga said PNG must work together with relevant organisations to strengthen the multicultural trading system that must ensure fairness and equity.

The setting up of internationally recognised food safety systems is a sure way of ensuring fairness and equity in trade, in addition to securing better recognition.

PNG is a member of various international agencies and has an obligation to undertake the necessary steps for monitoring and ensuring compliance for the safety of its people.

"It is very important to strengthen PNG's capacity to be more competent in the field of quality and safety. For safeguarding on the long term environment and health of consumers, government must develop a participatory approach to compliance."

Onaga said the training would help to ensure that PNG could benefit within the importing and exporting channels, and boost the capability to access and control the possible risks to the environment and human health situations.

Participants will be equipped with the knowledge and skills to provide safety food and ascertain quality of food.

The training, which will run from May 2-13, has been made possible under the K11 million EU-funded project "Trade Related Assistance" (EU-TRAP) to PNG, supervised by the Department of National Planning and Monitoring and implemented by the Trade Division of the Department of Foreign Affairs and Trade.

Under component 2, the two-week training is being facilitated and managed by the newly set- up Agrofood Safety and Codex PNG Unit within DAL.

This unit, located in the science and technology branch, has been one of the main beneficiaries of the EU-TRAP assistance since 2009.

Ian Erskine, an international certified trainer and facilitator from ACI Global company, based in Australia who has vast knowledge, skills and experience in the field of quality management systems auditing and food safety aspects of the entire food chain, has been engaged to conduct the training in PNG.

Most of the participants are in one way or another responsible for addressing the sanitary and phytosanitary (SPS) compliance issues in the country in an attempt to promote trade facilitation and protect the health of consumers.

EU-TRAP management and DAL hope that after this intensive training, PNG will benefit tremendously once the trainees apply their new knowledge and skills to promote SPS compliance issues.

Weekly coffee market report for Papua New Guinea

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