Add value to PNG’s coffee beans to soar in the world market

Posted on The National

THE global coffee industry is worth more than US$100 billion (K338 billion) and exports are valued at least US$20 billion (K68 billion).
According to Business Insider, coffee is the second most sought-after commodity in the world, after crude oil, and the industry’s annual growth rate is 5.5%.
Coffee is also one of PNG’s major agricultural commodities, with annual exports worth some K500 million.
And worldatlas ranks PNG as the 17th largest coffee producer in world out of 50 countries. More than 2.5 million Papua New Guineans cultivate coffee – the Robusta and Arabica varieties – on more than 64,000ha in PNG’s 16 coffee growing provinces.
According to PNG’s Coffee Industry Corporation (CIC), the growers, the majority being smallholders, produce about a million bags of green coffee beans a year (annual world production is about 125 million).
To date, there are 25 licensed coffee exporters in PNG supplying to more than 30 countries, including Germany, the United States, Japan and Australia.
The world’s top three coffee producers are Brazil, Vietnam and Columbia.
There are more than 100 types of coffee brew in the world but the top 10 favourites are Caffè Americano, Café Latte (or Café au lait), Cappuccino, Espresso, Flat White, Long Black, Macchiato (also known as a Piccolo Latte), Mochaccino, Irish Coffee, Vienna and Affogato.
PNG’s coffee production has been averaging a 3% growth rate per year, from 650,000 (39,000 tonnes) bags since independence in 1975 to about 1.12 million bags in 2005.
Production declined from 2006 to 2016 but soared to 1.13 million bags in 2016, 65% or more than half of 2015’s production.

Allan … connect farmers to markets, promote SMEs
Former Agriculture and Livestock Minister Benny Allan says the way to upgrade and forward PNG’s coffee industry is to connect farmers to markets, and promoting Small-Medium Enterprises (SMEs).
“That is the Government’s agenda for the coffee industry. We must start changing our way of subsistence farming to commercial farming to maximise revenue.
“We also need to tap the specialty markets while strengthening the connectivity between farmers and all stakeholders up in the value chain,” he added.
To achieve all that, Allan said PNG’s coffee farmers must learn to increase production and consistently maintain quality.
“There are lucrative coffee markets but few offer best prices based on consistent supply and quality,” he said, adding that markets would look elsewhere if production was inconsistent. It is, therefore, the Government’s responsibility to link farmers to the markets and create business opportunities.
“And farmers must always strive to deliver what is demanded by markets. They must meet market requirements, quality and supply,” he added.

Kanua … poor price of coffee beans affecting interest of farmers
Former Agriculture and Livestock Secretary Mathew Kanua said the poor price of coffee beans was contributing to the growing lack of interest in coffee cultivation.
“The growers are not really getting the price that encourages them to remain in the coffee industry.
“All the information and feedback at this symposium should be collated for all stakeholders,” he added.
Kanua said there were talks of integration, increased mixed farming, coffee integrated with food crops and other matters.
“You should be having people from NARI (National Agriculture Research Institute) and FPDA (Fresh Produce Development Agency) here.
“You have to (regularly) provide updates to keep the Government, informed so that planning and strategy policies are adopted and implemented effectively.
“It’s really disappointing, as a former secretary of agriculture department, to see that senior public servants are not here to drive all issues and measures for all stakeholders in the coffee industry.”

Go to this link for more: https://www.thenational.com.pg/add-value-to-pngs-coffee-beans-to-soar-in-the-world-market/

O’Neill: Get it right

Posted on The National

FORMER Prime Minister Peter O’Neil, pictured, has rejected statements by certain senior political figures that they were responsible for his decision to resign last week, saying he had acted on his own accord.
“(It) was my decision alone. And while leaders had provided their views, I was under no obligation to resign as (Supreme) court proceedings were already underway to ensure clarity of (the vote of no-confidence motion) process,” he said in a statement yesterday.
“I made the decision to resign before I left for Parliament on Wednesday morning, and signed my letter of resignation.”
“Even the most senior members of the Government were not aware that my letter of resignation (had been sent) to the Governor-General at the same time we took our seats in Parliament.”
Following his resignation on Wednesday, Tari-Pori MP James Marape was elected the next day by 101 MPs on both sides of the House, including O’Neill, to take over the top post.
It ended what was a hectic period of political manoeuvring, realigning and horse-trading to force him out and change the leadership.
O’Neill, the Ialibu-Pangia MP and leader of People’s National Congress Party, said it was “incorrect” to claim now that he had been coaxed into giving up the position.
Former New Ireland Governor Sir Julius Chan and Western Highlands Governor Paias Wingti had been discussing with O’Neill the continuing shift in political allegiance away from his camp up to his resignation.
O’Neill said he was of the view last week that “the prolonged action that would also provide the time to rebuild the number required to govern would not have been in the best interests of the nation”.
“I have long spoken of the importance of political stability in the long-term interests of our country,” he said.
O’Neill said he did not consult anyone when he made the decision to resign.
“I did not need to, because for me the decision was clear. I chose the interests of political stability over political self- interest,” he said.
O’Neill said leaders claiming to be responsible for his decision to resign, or the timing of this decision, “were seriously mistaken”.
“Some are making false and self-serving statements trying to claim credit, when the reality is that they were themselves hungry for power and are now trying to take credit for the change that has taken place.”
He said Parliament “has since elected the eighth prime minister of our nation James Marape”.
“This matter has been settled and it is time for leaders to put aside their attempts to seek glory and stop this misleading self-praise.”

Go to this link for more: https://www.thenational.com.pg/oneill%e2%80%86get-it-right/

O'NEILL LIES ABOUT HIS RESIGNATION

By Bryan Kramer Madang MP

Today Post Courier and National published front page press statement issued by Member for Pangia-Ialibu Peter O'Neill rejecting recent statement from the former Prime Ministers concerning his resignation.

O'Neill was referring to recent public statements made by Governor for New Ireland Julius Chan and Governor for Western Highlands Pias Wingti suggesting they were responsible for his resignation.

O'Neill claims it was his decision alone and not because certain leaders decisions.

"I chose the interests of political stability over political self interest. I made the decision before I left for Parliament on Wednesday morning," O'Neil said.

So is O'Neill telling the truth?

Short answer is No.

There is much to tell about the circumstances that led to O'Neill's resignation, and tell I will in the coming days.

For now O'Neill claims he made the decision on Wednesday morning, however he left out the 4am meeting with James Marape and Southern Highlands Block of MPs. He claims he resigned for stability over political self interest however he left out the fact he cut a deal with Opposition Leader Patrick Pruaitch and Belden Namah in a secret plan to get re-elected. A secret plan that failed miserably and will go down in PNG's political history as the dummies guide on how not to get re-elected after resigning.

So Post Courier's headline "O'Neill clears the air" is misleading and should have read O'Neill continues to lie even out of office.

How do PNG become a Rich, Black, Christian Nation

By Jordan Dean PNG Writer & Author - JDT Publications

Dear Prime Minister,

Your question about how we can make PNG a truly rich black, Christian country in 10 years’ time got me thinking.

While I’d really love to go all academic and research the solutions in detail, I’ll leave that to our good professors at our universities.

However, here are a few practical tips that I can think of for now:

1. Right-size the Public Service, Control Government Expenditure and Value for Money.

The public service consumes about half of the national budget every year. It needs to be right-sized. A lot of offices, commissions and secretariats are established because everyone wants to be the boss and paid at Executive Level 4 or 5 salary. Agencies that do not play a crucial role have to merge with mainstream departments.

Another issue is that the old people still hold onto senior positions and never seem to retire. They should have enough savings and superannuation by now to retire and start a business and employ new graduates. The longer these old public servants remain in top positions, they become bottle-necks and so new graduates have no chance of been employed. The General Orders should state that no person should serve as a departmental head for more than two (2) terms.

The government has to control its expenditure. A lot of money is misappropriated by agencies on unnecessary overseas travel. Contracts are also inflated. A job or service that can be done for K10,000 is invoiced for K100,000! Are we getting value for money when about K1billion disappears from our national budget because of inflated contracts and corrupt deals? Proper valuation has to be done on bids before a contract is awarded.

2. Reduce Taxes and Expand the Tax Revenue Base.

The government has to reduce the current taxes. This gives people an extra incentive to work. Clearly, society benefits when the incentive to work more hours increases. Besides, the less a government taxes its citizens, the more money they have to pursue their own goals.

At the same time, the government has to reduce tax holidays given to mining and logging companies.

The government has to expand its tax revenue base by imposing tax on the informal sector. The informal sector makes a lot of money but pays no direct taxes to the government. Taxis, PMV buses, landlords who rent out rooms to people, the street sellers and the vendors at Pom City Markets need to be taxed for the income they earn.

3. Invest in Innovation, Technology start-ups and Downstream Processing.

Twenty first century is driven by science, technology and innovation giving rise to the Fourth Industrial Revolution that will create more convenience to the livelihood of humans and also assist in solving and alleviating many of our social and economic dilemmas.

Papua New Guinea is largely a consumer of innovation, imported technologies and knowledge products but must give prominence to Innovation as a key driver for economic growth and to move up the value chain to be a producer of innovation. The government has to invest in innovation hubs and technology start-ups.

The government must also encourage downstream processing in agricultural production. For instance, instead of exporting copra, we can manufacture and export organic virgin coconut oil products and derivatives. The by products of virgin coconut oil include; Coconut soap, Cooking Oil, Hair Conditioner, Shaving Oil, Shampoo, Body Lotion, Hair Food, Detergents, etc.

4. Invest in one or two Tourism Hubs.

We have beautiful beaches that are on par with Bali or Hawaii. Yet, PNG only attracts 180,000 vistors per year (probably less than 50,000 tourists). Bali attracts 6 million foreign tourists plus 8 million Indonesians from other parts of the country. That’s 38,350 visitors every day – the equivalent of 200 Boeing or Airbus flights to Denpasar per day.

The government needs to develop Alotau or Kavieng to be tourism cities. Build good roads, shopping malls, banks, ATMs and foreign exchange, entertainment areas, parks, international airports, reduce airfares, hotel prices, taxes, etc. Law and order must be maintained and our people’s attitude has to change! We have a huge tourism potential. Market our country as a tourism destination. Tourism brings in free money to our economy. Let’s try aim for a million visitors by 2025!

5. Capital flows, Foreign Investment and Competition.

When foreign companies invest in PNG, our economic choices are expanded. It not only creates employment for locals, but it also creates other spin-off business opportunities for local distribution companies, local manufacturers, and so on. However, foreigners will invest in a country only if they believe they will be able to get their money out of the country. Therefore, it is essential that our government allow capital to flow freely instead of restricting foreign exchange.

A lot of mining companies and development partners employ expatriates in managerial jobs while the locals occupy the lower paid jobs. Even Chinese laborers are brought into the country to work on road construction. The government has to control the number of expatriates been employed in PNG. Impose work permit levies on skilled expatriates and protect jobs for our people.

Also allow competition in the airlines industry. Encourage foreign airlines to compete with Air Niugini to allow for affordable airfares and more efficient service.

6. Government intervention in the economy.

The real estate industry has to be regulated. Rentals and property prices in PNG are among the highest in the world.

Raise the minimum wage to K5/hour. Penalize any Asian company that underpays our people by deregistering them and/or deportation.

The government should give out soft loans for young people to start up SMEs. They can repay the loan in 10-20 years at a low interest rate. When the government supports entrepreneurs to start-up businesses, they create employment opportunities as well as pay tax back to the government. Imagine a 100,000 SME’s paying K10,000 per year. You’ll have a billion kina tax revenue!

We can learn from Brunei, Dubai, Qatar and Singapore if we want to be the Richest Black Christian Nation.

Thank you.

Jordan Dean.

Political Turmoil In Papua New Guinea Threatens LNG Expansion Plans

By Tim Treadgold - Forbes

Political upheaval in Papua New Guinea has raised doubts about the timing of a major expansion of the country's liquefied natural gas (LNG) industry and the future of PNG's national oil and gas leader, Oil Search.

Adding to the problems of the company, which has operated in the island nation for 90-years is the start of a succession process to replace Oil Search's long-term managing director, Peter Botten.

Exactly when Botten will step aside after 25 years in the top job at Oil Search has not been revealed and Botten himself says he expects to be around "in some form or another" while a final investment decision was made on the LNG expansion, and a big oil development in Alaska.

Prime Minister Steps Aside

The future of Peter O'Neill, PNG's Prime Minister until last Sunday is less certain after he stepped aside following criticism of an ill-timed investment by the PNG Government in Oil Search.

The crisis in PNG started in March, 2014, three months before the oil price crashed, when PNG Government borrowed $1.24 billion from UBS, a Swiss bank, to buy a 10% stake in Oil Search.

Three years later the government sold out of Oil Search booking a loss estimated at $420 million, a blow for a poor country.

Loan Deal Investigated

Since then the roles of O'Neill and UBS have been under close scrutiny in PNG where a 332-page report by the country's Ombudsman described the deal as speculative and highly inappropriate. There have also been questions raised in Switzerland over the role of UBS which reportedly earned $120 million in fees.

It's against this background the PNG Government, now led by Sir Julius Chan, is hoping to negotiate the expansion of the PNG LNG project which is led by U.S. oil giant ExxonMobil with a 33.2% stake while Oil Search owns 29% of a project which cost $19 billion to build.

The expansion plan, which would see the French oil company, Total, become part of the overall development could cost up to $14 billion and effectively double LNG output to around 16 million tons a year, confirming PNG as a regional energy powerhouse.

Peter Botten, managing director of Oil Search Ltd. Photographer: Brendon Thorne/Bloomberg

 © 2019 BLOOMBERG FINANCE LP

But, that move up the LNG pecking order has been thrown into doubt by the UBS loan investigations, the resignation of O'Neill, and the planned retired of Botten.

Baillieu, an Australian stockbroking firm, told clients last week that it was concerned about the outlook for Oil Search and the LNG expansion.

Country Risk Rising

"Recent political instability could see country risk being brought front of mind again," Baillieu said.

"Succession planning to replace Peter Botten is well advanced, supporting our view that Botten could leave in the next 18 months, which could cause a de-rating event for Oil Search.

"We still consider Oil Search more a takeover target than ever before, and wonder if the only reason to hold Oil Search is hope of a takeover."

Delay, Delay, Delay

Credit Suisse, an investment bank. headlined a report on Oil Search yesterday as: "PNG turmoil portends delay, delay, delay".

On the resignation of O'Neill, Credit Suisse said that at best it saw the event as a distraction for the government amid critical project negotiations.

"Should a material delay materialize due to the politics, the risk to the project timeline could then be further exacerbated," Credit Suisse said.

"ExxonMobil and Total may sanction other LNG projects in the interim which could cause them to further delay a PNG LNG expansion.

 Go to this link for more: https://www.forbes.com/sites/timtreadgold/2019/05/29/political-turmoil-in-papua-new-guinea-threatens-lng-expansion-plans/#7ffc61bd71e0

Gas Deal Critic Chosen as Papua New Guinea Prime Minister

By Stephen Stapczynski - Bloomberg

A critic of Papua New Guinea’s resource deals has been chosen as the country’s prime minister, a potential speed bump for multibillion-dollar natural gas export projects led by Exxon Mobil Corp. and Total SA.

James Marape, who resigned as finance minister in April, will become the nation’s new leader after receiving a majority vote in parliament Thursday. Marape has been critical of the gas deal his predecessor signed with a Total-led group of companies, and said his calls to change the nation’s resource laws had been ignored.

In his first comments as prime minister, Marape struck a balance between reassuring international firms that the nation will honor its commitments while seeking greater benefits from its energy, mineral and forestry assets.

“Our resource laws are outdated,” he said in a speech to parliament. “We do not intend to chase our investors. They’re here to stay, we encourage them. But we will look into maximizing gains from what God has given this country, from our natural resources.”

Total and Exxon reached a deal with the government in April that moved forward their efforts to double gas exports from the Pacific nation. The recent political turmoil will likely delay, but not threaten, that $13 billion project, analysts said this week after Marape’s predecessor, Peter O’Neill, announced his resignation.

Negotiations

“It’s almost certain that Marape will look to re-open discussions on the memorandum of understanding between the PNG government and Total,” Jonathan Pryke, director of the Pacific Islands Program at the Lowy Institute, said by email after the election. “I don’t, however, expect there to be major shifts in policy. He will have to make some changes to put his own stamp on the leadership, but overall policy settings should remain unchanged.”

Negotiations with the new government may delay the LNG expansion by a few months, but it won’t have a material impact on the big picture, according to Kevin Gallagher, managing director of Santos Ltd., which has a stake in the expansion.

“This debate is about getting the right balance of agreement so that the Papua New Guinea stakeholders get a fair return from these projects, and we’re keen to get that balance right as well,” Gallagher said in an interview Thursday.

‘Opportunistic’ Politics

Exxon said that it doesn’t comment on political matters, but remains committed to its long-term plans for PNG and looks forward to working with the new leadership. Total didn’t immediately respond to requests for comment. PNG politicians understand that contractual sanctity is important for upstream investors, and renegotiating a deal would cause substantial damage to its reputation, according to Rachel Calvert, an associate director of exploration and production terms and above-ground risk at IHS Markit.

“PNG politics tends to be very opportunistic, with frequently shifting allegiances,” Calvert said by email. “Statements related to particular issues are often motivated as much or more by potential political gains than the issue itself.” O’Neill, after seven years in power, had been under increasing scrutiny over his dealings with international oil companies and banks as the nation developed its liquefied natural gas export industry.

“We aren’t here to break legally binding project agreements, but those project agreements must be’’ in line with the law, Marape said, referring to current LNG-related deals. “If we find that any project agreement hasn’t fully prescribed to the provisions of law, then we are open to review.’’

Go to this link for more: https://www.msn.com/en-us/news/money/gas-deal-critic-chosen-as-papua-new-guinea-prime-minister/ar-AAC8Lz8

O'Neill says no to PNG cabinet post

Posted by Radio New Zealand

Ousted Papua New Guinea prime minister, Peter O'Neill, has declined a ministerial portfolio in the government of his successor.

NBC News reported that the new Prime Minister, James Marape, revealed during last week's swearing-in of his caretaker Cabinet that Mr O'Neill was approached but had turned down the offer.

Mr Marape said Mr O'Neill had every opportunity to be back in cabinet in various capacities but he respectfully declined so that a new-look government can be formed.

Go to this link for more: https://www.rnz.co.nz/international/pacific-news/391192/o-neill-says-no-to-png-cabinet-post

Wealth Will Be Equally Distributed : Marape

Posted on PNG Facts

Papua New Guinea Prime Minister  James Marape says the country's wealth will be equally distributed to all the 22 provinces. He said this while assuring Opposition Leader Patrick Pruaitch and all MPs that service improvement funds for districts and provinces will be distributed fairly.

Marape, accompanied by the 28 MPs from his camp, met Pruaitch and his group at the Laguna Hotel on Sunday following his election as prime minister on Thursday.

He assured them that his Government was for everyone. While only some would be allocated Cabinet portfolios, he assured all MPs that they would be receiving funding for the district and provincial service improvement programmes and other grants due to them.
He said while he would love to consider “a few” ministries for the Opposition, it was a difficult task trying to accomodate his 28 MPs plus parties in the coalition.
Marape said his predecessor Peter O’Neill had focused on infrastructure development while he would ensure all systems of government were working effectively.
He also promised to:

• Improve the work of the law and justice sector including policing to make the nation and safe and secure;
• deliver as much as he and Cabinet could in the next two years given the current economic situation;
• push for the ICAC Bill to be passed, allowing for the creation of an office to fight corruption at all levels; and,
• Table the UBS report in Parliament.

He will also make sure that the electronic system of voting will be used in the 2022 general election.
“I have a case to prove so I will work hard (to implement) electronic voting. You can assure the nation that you have been elected properly,” he said.
He also warned Cabinet Ministers who fail to perform that they will be decommissioned. The National/PNGfacts

Go to this link for more: https://www.pngfacts.com/news/wealth-will-be-equally-distributed-marape?utm_source=dlvr.it&utm_medium=twitter

BIRD, DUMA & KIMISOPA RESPOND TO MY ARTICLE

By Bryan Kramer Madang MP

Following my last article explaining why I was absent from Parliament to cast my vote during the election of Prime Minister Governor of East Sepik, Allan Bird, Member for Hagen, William Duma and former Member for Goroka, Bire Kimisopa issued responses taking offence to it.

Governor Bird responded claiming I have my own version of events which is not entirely correct, that I was never part of his team

"Hon Kramer needs a new enemy and has chosen the team he left as his new enemy" Bird said in his recent statement.

While the Governor made many numerous comments in response to my article the more notable ones included

"One MP was never part of any team, he has chosen to vilify the entire Opposition. I think the Opposition made a huge mistake taking BK in. He has used that opportunity to destroy us," Governor Bird said.

Duma issued a formal press statement saying he found my article about what supposedly happened between him and Patrick Pruaitch at Laguna to be offensive and insulting to say the least. He concluded with what appears to be veil threat that I should be careful in what I say and work as a team player.

Meanwhile out of left field the former Member for Goroka Bire Kimisopa took the opportunity to lecture me on lacking conviction and guts to vote on the floor of Parliament.

"Your absence on the floor cannot be excused, it's one thing to be hold up in the your office and let friends stand alone during this watershed moment." Kimisopa said.

"Your Facebook followers did not vote for you, and never will, but your good people of Madang will always be there for you and hopefully you restore your faith. I believe in your leadership and hopefully restore my confidence in you" Kimisopa concluded.

My Response in brief:

Each gentlemen raised the same issue of me failing to be part of a team and not letting your friends down.

Governor Bird said I'm not a team player, this is correct where the team are part of a deceitful scheme that involves Peter O'Neill and after their scheme failed abused the public trust and tried to cover it up.

Duma claims my article was offensive and insulting to say the least, well if I'm known for anything, its saying the least on any issue of corruption, lies and deceit.

Mr Kimisopa, talks about leaving my friends alone who stood there and voted with their hearts. It's clear he either knows absolutely nothing about what his friends where upto when they agreed to nominate Peter O'Neill in his bid for re-election or perhaps he does and was even party to it.

While Kimisopa's advice is noted my own advice to him being in future before making a public statement offering your misguided advice, you have my number and knowing we communicate from time to time, you could have just called me.

For your information I did not seek public office to gain your confidence, nor have Madang people lost faith in my leadership , so I'm not sure what authority you have to suggest they have. Madang people mandated me to fight corruption. I campaigned on that policy, including the message that Madang would rise and change the country. Not one person can deny we haven't achieved that outcome and will continue to do so. While I would never claim it was one man's achievement Madang people certainly took the lead by elevating me to the national level to ensure the job gets done.

I will conclude on this point, my article was 1,300 words long, while all three gentlemen took offence to it, not one of them bothered to dispute a single issue raised in it.

I've noted the issues highlighted in their responses and will respond to each separately once I've published Part 2.

If there is one lesson social media provides its unless you are defending the truth of an issue then best to remain silent because anything and everything you say or do maybe used against you, even when you may not mean what you say at the time.