Majority of Papua New Guinea’s population lives in rural areas, whose livelihood largely depend on subsistence Agriculture. Agriculture accounts for approximately a third of GDDP in PNG inn a sector that is dominated by smallholder farming systems. Cocoa is the most important export cash crop of smallholder farmers in the wet lowlands. Over 90% of PNG cocoa is produced by smallholders.Although PNG contributes less than 2%% to the world cocoa market it has established. Over 90% of PNG cocoa is produced by smallholders.
Although PNG contributes less than 2% to the world cocoa market it has established an international reputation for quality, attracting 90% of a premium for fine and flavor cocoa. Very competitive and efficient marketing system s and quality control have resulted in an extremely high Free-on-Board (FOB) price paid to PNGG farmers for several decades.
The Productive Partnerships in Agriculture Project (PPAP) aims to combat these problems in order to improve the livelihoods of smallholder cocoa and coffee producers, and promote rural development and poverty reduction more broadly.
The Productive Partnerships in Agriculture Project (PPAP) is executed by the Government of Papua New Guinea and funded by the World Bank (WB) and the International Fund for Agricultural Development (IFAD). Through the National Department of Agriculture and Livestock (NDAL), Cocoa Board of PNG and the Coffee Industry Corporation (CIC) are implementing the project.