Copyright postcourier
PAPUA New Guinea coffee has entered the international market, making the organic coffee a hit among coffee drinkers around the world. PNG coffee, traditionally, has been sold to major markets in Germany, the United States, Japan, and Australia. It is also been exported to the United Kingdom, Belgium, New Zealand, Russia, and Taiwan. Very recently, the traditional tea drinkers of Japan and China are moving into coffee and PNG coffee in making its way into this big customer-based market. PNG has signed several agreements and protocols with China. In 2024, Prime Minister James Marape signed a broader “phytosanitary agreement” with President Xi Jinping during a state visit to China, which enabled the market access for various products including coffee, cocoa, vanilla, palm oil, and livestock. The agricultural biosecurity protocols (phytosanitary requirements) between PNG and China were signed. PNG was represented by: John Boito, Minister for Agriculture (for unroasted cocoa beans protocols). William Bando, Minister for Coffee (for unroasted coffee beans protocols). While China was represented by Zeng Fanhua, the Ambassador for the People’s Republic of China to PNG. The signing ceremony took place in Port Moresby on April 20, 2024, witnessed by PNG’s Foreign Affairs Minister Justin Tkatchenko and China’s Foreign Affairs Minister Wang Yi. This agreement has now paved way for PNG coffee into China, with more than 400 million coffee drinkers among the younger generation. The Morobe coffee and others in Central province are also making it into markets in Dubai while the Marawaka coffee in EHP is a big favourite in Korea. Coffee, indeed had supported the economy of this country over the past four decades. In politics, coffee has built and broken governments in the past, and it has the potential to spring the economy itself, without the support of the extractive industry because its a billion-dollar industry as expert say. This industry, often referred to as the green gold, has been neglected and had gone to sleep, but through visionary leadership, the Prime Minister decided to revive the industry by allocating a separate Ministry, and the appointment of the Mr Bando, was not a mistake. According to the Mr Bando, the industry once peaked at 1.5 million bags per year, however, recent exports are 1.2 million from a stagnant 800,000 -900,000 bags for a long while. About 80 per cent of these are produced by the smallholder farmers. He said the CIC Act of 1991 established the CIC Ltd and the basic framework for production, marketing, equality control and exports. However, over time it has not delivered the farmer-focused incentive, governance clarity, or export discipline needed to lift yields, improve quality, and domestic value-add remains a mere one percent. Therefore, a legislative rest is required to align institutions with current policies and markets realities. As part of PNG Reset 50, Mr Bando provided the strength, the leadership and vision needed, and took the bull-by-the-horn with an urge to resuscitate the sleeping industry, and came up with first -ever legislation to create a fully pledged state-owned industry regulator. The passage of the Coffee Industry Bill 2025 is an indication of a Minister at work, a Minister who started from nothing to make the ministry a economic ministry, that will once take this country forward. Mr Bando received commendation and support from both sides of the House, and the Bill finally got passed by an absolute majority of 72 votes. This Bill aims to revitalise the industry, a positive outlook for the industry players including the farmer who makes up about 80 per cent of the production in the country. It repeals and replaces the Coffee Industry Corporation Act of 1991. At the heart of the historic Bill is the Government’s vision to revolutionise the coffee industry as a vehicle to stimulate economic growth through increased small holder participation, increased production, increased downstream processing, increased job creation, address forex challenges and import replacement. The Bill is a product of a broad consultation across districts and provinces and aligns with the recently approved National Coffee Policy 2024 through NEC Decision No. 326/2024. Mr Bando said the decision to repeal the CIC Act of 1991 that established the CIC LTD and the basic framework for production, marketing, quality control and export. Because it has not delivered the farmer-focussed incentive, governance clarity, or export discipline needed to lift yields, improve quality, and domestic value-add remains a mere one per cent. Therefore, a legislative reset is required to align institutions with current policies and market realities. Moving 50 years and look beyond, he envisions that he at the helm must set a new course that realistically meets the needs and challenges of our people, by empowering our local farmers and small holders to reach their fullest potential in coffee, which is the Government vision through the Bill. The Gap Analysis they have undertaken has identified critical gaps that inhabit performance and they are; Administrative Governance- CIC is a private nor a statutory body, hence, plays a dual role as a regulator and private company. The Act lacks clear provisions for the Board, CEO, Employment and public finances and procurement compliance, weakening accountability and control. Quality Control and inspection; uncovered no national quality system; Compliance and Enforcement; uncovered no penalties and sanctions; Export and control market- absence of export control for certification of export; and Research and Extension- no coordination for coffee research and development and extension services. Therefore, the Minister believes that the key shift in the new coffee industry bill will address these gaps. The Bill establishes a National Coffee Authority as the policy maker and regulator under robust governance structure. It embeds standards, strict licensing condition, enhances audit schedules and ensure risk-based inspection. It is farmer-centred incentive to life farm-gate return and reduce cost to market with price and freight support. Speaking during the presentation of the Bill, Minister Bando said the Bill places greater focus on our small village coffee farmer by introducing a new provision for; Green Gold Card- a landmark registration system that will register each smallholder by ward, LLG, Province and will be linked to their bank accounts; Price support- provides for support to stabilise farm-gate income during marker troughs; – Freight Support- to offset the first-mill and last-mill cost from remote communities to mills and export points; Mini-mills and grading support- to improve parchment quality and enables tailored community-level value addition and participation; and Extension and Finance access – the Bill will ensure integrated agronomy support and links to MSME finance for rehabilitation and expansion. As a result, it will see yields from 500 kg per hectares to 1000-1500 kg per hectare, ensuring higher quality grades, and steady household income to support health, education and local enterprise. The Coffee Industry Bill 2025 also captures a recent NEC DECISION No, 158 of 2025 that approves downstream processing and various incentives amongst other to retain value offshore. It intends to incentivise industrial -scale roasting, grinding and packaging through: Licensing- multi-year licensing for investors committing to large scale on-shore processing and market development; Fiscal Support: Duty exemption of imports of specialised equipment and inputs, pioneering industry tax holiday tied to performance and skilled transfer; and Infrastructure partnership- Alignment with provincial and DDA programs for power, water, roads, and law and order at processing hubs. Mr Bando said the Bill once enacted will be sequenced with transparent monitoring and evaluation: Production: Scale from 1.0 million to 3 million bags within the planning horizon through rehabilitation and new planning across Arabica heartland of highlands and revive Robusa regions on the coastal area; Export Value: We expect to increase export value to K5 billion at 3 million green bags at current price at K20 per kilogram, with on-shore roasting at indictive K60 per KG, total exports can approach K10 billion; Inclusion: Will expand participating smallholder households from 400,000 to 500,000 benefiting more than five million individuals throughout the country; and Accountability: Annual Statutory and Industry Compliance reports on finances, production, quality, farm-gate price, incentive outlays, and all matter of compliance which have been absent for years. The Coffee Industry Bill 2025 aims to modernise governance, quality, compliance, exports, and research, financial accountability and cement stability in the Board and Management with clearly defined mandates and responsibilities. Coffee is one of the backbone cash crops in PNG by empowering smallholders and rewarding downstream processing, PNG can reach 3 million bags by 20230 as envisioned in MTDP 4 (2023-2027) AND National Agriculture Plan. As Mr Bando puts it, the Bill aims to hear the cries and plight of our people and it further aims to alleviate their struggles, while at the same time fostering much needed economic growth.
