A Memorandum of Agreement (MoA) was signed between the Gulf Provincial Government and the Coffee Industry Corporation Ltd (CICL) in Port Moresby on Friday July 21st.
The agreement will cover a five-year partnership (2023-2027) valued on kina to kina basis. This will progress and increase coffee production in the district.
The deal was signed by Coffee Minister Joe Kuli, Kerema MP Thomas Opa, Gulf Governor Sir Chris Haiveta, and CICL chief executive officer, Charles Dambui, and witnessed by the Gulf Administration, coffee ministry and the CICL at Parliament House.
The signing now allows for support to come from both parties in terms of financial and human resource capacity to carry out coffee work in Gulf.
Gulf Governor said his administration is ready and committed to working closely with CICL to implement activities that would boost coffee production in the province.
“Coffee is very important and the only cash crop to a third of our population who reside in the hinterlands.”
Sir Chris said deteriorating infrastructure and the rugged terrains made it difficult to bring coffee out but with Connect PNG program under the Marape/Rosso government plus the freight subsidy under this partnership, they want to make sure the statistics are properly captured and the province is recognized for its production capacity.
“This signing will open up ways to get coffee out and at the same time to provide training for farmers and rehabilitation to the coffee trees as well as replanting exercise to increase from current 3 million coffee trees to 5 million trees in the duration of the agreement,” he said.
Dambui said that third level airlines only go to remote places like Kaintiba and Kotidanga if there are economic activities, otherwise there are no regular flights into the area.
“In this MoA, we would like to see that we establish market for the farmers and open up a marketing facility for them instead of them bringing it by walking to Aseki to sell.”
Dambui said the purpose of the MoA is to drive coffee in Gulf as there is huge potential in the area.
He said coffee production in the area had dropped due to lack of transport.
“We want to bring the market closer to the farmers. We have history of farmers walking with coffee bags to Aseki to sell. Due to less economical activities, third level airlines find it hard to service the airstrips in Kaintiba, Kanabia and Komako. We will start with those airstrips to freight coffee out. We have over 1 million coffee trees around Kotidanga and 2 million around the Kaintiba area.
“Farmers have been struggling to bring their coffee to the market. The challenge is there for us and the provincial governments to establish a solid market for the farmers.”
Minister Kuli urged provincial and district governments to put the necessary support for coffee farmers to address their struggles.
“Coffee is an important crop that brings in foreign currency into the country and above all assisting our farmers. At CICL and my department, we will support with an initial funding of K200, 000.00 to move coffee out from Kaintiba and Kotidanga.”
Gulf Province has two districts and 10 LLGs, of which Kaintiba and Kotidanga LLGs contribute to coffee production in the province.