The Productive Partnerships in Agriculture Project (PPAP) aims to enhance the livelihoods of smallholder farmers by improving the performance and sustainability of value chains in the cocoa and coffee producing areas of PNG.
The PPAP has developed a model approach that facilitates the realisation of the 3 project objectives:
- To strengthen institutional performance and industry coordination.
- To build productive partnerships between smallholder farmers and the private sector.
- To improve market access through the provision of critical infrastructure.
The PPAP context and expected outcomes are introduced below. More information is displayed in the sidebar.
Cocoa industry challenges
Over 80% of PNG’s population live in rural areas, where livelihoods are largely dependent upon subsistence agriculture and cash crop production. The agricultural sector, which accounts for approximately one third of PNG’s gross domestic product (GDP), is dominated by smallholder farming systems.
Smallholder farmers produce over 75% of PNG cocoa, which provides the main source of cash income for many rural households in PNG’s wet lowlands. Unfortunately, cocoa productivity and quality has been declining for many years due to minimal replanting, limited incentives for smallholder farmers, and poor access to markets. The cocoa pod borer (CPB) outbreak in 2006 has further reduced productivity, threatening the livelihoods of thousands of smallholder farmers in PNG. East New Britain Province alone experienced an 80% drop in cocoa production from 2008 to 2012. The 9-year conflict in the Autonomous Region of Bougainville has further diminished cocoa exports from the once productive Islands Region of PNG.
Cocoa market opportunities
Although PNG currently contributes less than 2% to the world cocoa market, the country has established an international reputation for quality. For several decades, the cocoa industry’s efficient marketing systems and quality control measures have enabled PNG households to receive above average prices for their cocoa. PNG currently holds a 90% fine flavour status from the International Cocoa Organisation. In 2017, an international cocoa buyer attending the 18th International Cocoa Awards ceremony in Paris declared:
If the cocoa is processed properly, it is one of the best cocoa in the world. Not all countries can say that. PNG really has a unique flavour profile that could be very much sought after in the developing specialty chocolate market so there’s a lot of potential for PNG to focus on quality and branding itself as one of the top flavour countries in the world.
Realisation of the project development objective will lead to the following outcomes:
- Smallholder farmers adopt efficient, market responsive and sustainable production practices leading to an improvement in their income.
- Demand‐driven productive partnerships are scaled‐up and sustained.
- Key infrastructure bottlenecks in the targeted value chains are addressed.