PNG to receive $30m from the World Bank to aid coffee and cocoa

At the beginning of the month the World Bank approved a $30m fund for an agricultural partnership in Papua New Guinea. The initiative is set to benefit around 60,000 farmers and their families Yahoo New Zealand report.

Coffee, and cocoa, production on the island is crucial. Over 85% of the island’s population live in rural areas and depend on small-scale farming projects for their livelihoods. The two crops provide a critical income stream for over 500,000 households, it is believed.

The project, Productive Partnerships in Agriculture Project (PAPP), works with small farmers to increase the yield from their crops whilst simultaneously improving the quality of their produce. In turn, incomes will rise ensuring the profitability and financial rewards of the plantations, benefitting everybody involved.

The World Bank said that the extra funds will be used to double the number of existing coffee and cocoa partnerships.

 “PPAP is a hugely important initiative,” said Laura Bailey, World Bank Country Manager for Papua New Guinea. “It is also providing a critical boost to the coffee and cocoa industries which remain significant forces for the economy. In this sense, it is truly a win-win for agriculture in Papua New Guinea.”

Production levels have dropped on the island over the last ten years, a result of a number of factors, including: a sluggish replanting process a lack of extension services; and insect crop devastation.

Another major area for investment will be the current infrastructure and a portion of the money will be siphoned off to improve road surfaces. Currently the poor quality of local roads has been cited as a factor for the loss of revenue in recent years.

The extra financing is being provided by an IDA credit of $30m with a further $6.4m coming from the European Union, $4.5m from the Papua New Guinean Government and an extra $10m from the private sector. It is also expected that the International Fund of Agricultural Development, who already contribute to the project, will provide further economic support.

Commercial coffee production in the country dates back nearly a century, with the first plantations being established in the mid-1920s.

photo: Victorgrigas(wiki), used under Creative Commons