Agriculture & Plantations
From The Report: Papua New Guinea 2012
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Even though mining revenues account for most of GDP, agriculture is the way of life for about 85% of PNG’s people. Infrastructure difficulties limit the potential for exports, but PNG does specialise in several cash crops, including palm oil, rubber, coffee, cocoa, copra and tea, in addition to fish and timber. The agriculture sector is host to dozens of initiatives to develop high-yielding crops, boost productivity, and increase access to markets. One of the major challenges, however, is the uncertain legal status of most of PNG’s land, which is governed by customary land rights for indigenous groups. Timber exporters are also suffering from bans on non-certified lumber imports in Australia, the EU, and the US.

This section features interviews with James Lau, Managing Director, Rimbunan Hijau PNG; and Pedro Celso, Managing Director, RD Tuna, and Chairman, Fishing Industry Association PNG.

Articles from this Chapter

Overview

From the roots up: Niche markets are helping make the most of production
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With a strong agrarian culture and a population still highly involved in the farming sector, agriculture in Papua New Guinea is one of the country’s largest economic contributors. While mining revenues have dominated exports since the 1970s, farming and forestry sustained the country in previous decades and are still the country’s largest employers and de facto safety net. According to PNG’s investment authority, approximately 85% of the population is engaged in semi-subsistence food production.…

Analysis

Catching on: The fishing industry is maturing
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As one the Pacific Ocean’s largest fishery zones, encompassing some 2.4m sq km of exclusive water territory, PNG is home to more than 10,000 identified species of fish, molluscs and crustaceans. The country currently operates six primary fisheries, the most productive being the tuna catchments, along with prawn, lobster, sedentary, inshore and aquaculture/inland categories taking on smaller but growing roles. The primary export destinations for PNG seafood include Hong Kong, Japan, Australia…

Interview

OBG talks to James Lau, Managing Director, Rimbunan Hijau PNG
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InterviewJames Lau How developed is PNG’s timber industry? What is its potential as an economic driver? JAMES LAU: The industry is a very significant part of PNG’s economy. It contributes 2% to GDP, makes up 5% of exports and employs 10,000 people. It has a significant impact in rural areas, where employment opportunities are scarce and infrastructure spending by timber companies for health or education facilities and roads can outstrip government spending. It has enormous potential as an economic…

Interview

OBG talks to Pedro Celso, Managing Director, RD Tuna; and Chairman, Fishing Industry Association PNG
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Interview: Pedro Celso What challenges is the fishing industry experiencing and how do you assess the impact of PNG’s new Pacific Maritime Industrial Zone (PMIZ)? PEDRO CELSO: A major issue in PNG is the high cost of doing business due to the many obstacles that have arisen caused by a lack of economies of scale, inadequate and inefficient infrastructure, as well as the need for basic logistics and utilities. Though there are other constraints, I consider these issues to be temporary and easier…

Analysis

On the rise: Very active palm oil production earns a spot among top exporters
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While the local palm oil industry’s increasing maturity over the past decade has been impressive, its linear pattern lags behind the exponential growth seen in other palm oil-producing countries such as Malaysia or Indonesia. This slower but steady pattern is due to the hobbling influence of the complicated land usage and ownership system in PNG. Another factor is the relatively high cost of production resulting from increased costs of labour, transport and energy, inefficient infrastructure,…

Analysis

Knock on wood: Logging continues to be an important industry
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With valuable hardwood forests blanketing the country, timber has been an export mainstay for PNG long before the multibillion-dollar mining and oil and gas projects began pouring in. Recently the logging industry consistently averaged exports of 84,950 cu metres of logs per annum, according to Bob Tate, executive officer of the PNG Forest Industries Association. Output ballooned to some 3.8m cu metres in 2011, according to estimates from the PNG Forest Industry Association, with much of this…