Coffee partners receive K8m for six projects under PPAP facility

Contracts for six coffee projects worth a total of K8.5 million were signed between the Coffee Industry Corporation (CIC) and various project partners under the coffee component of the World Bank-funded Productive Partnership in Agriculture Project (PPAP) in Goroka recently.

Contract signing with Monpi coffee

The six contracts are expected to benefit over 6, 500 famers in four provinces – Western Highlands, Jiwaka, Simbu and Eastern Highlands. 

CIC Chief Executive Officer Navi Anis said the PPAP project came in the period when the PNG coffee industry is facing stagnancy issues in production with the demise of the plantation sector; thus placing more demand for high volume and quality production on the smallholder  growers.

Mr Anis thanked the World Bank and the PNG Government through the National Department of Agriculture and Livestock (DAL) for seeing the need of the coffee industry and creating the PPAP facility. He urged the partners who signed the contracts to promote and increase the production of high coffee quality through farmer groups as production and marketing units.

PPAP Project Manager David Freyne revealed that the six contracts were awarded to the successful applicants who submitted project proposals for PPAP assistance during the first call for proposals in March 2012 – out of a total of 118 applicants. 

The applicants included leading industry partners;

  • Monpi Sustainable Services (MSS) Inc. with its proposal for Smallholder Development through Certification,
  • Pacific Agriculture Management Services Ltd (PAMSL) with its Smallholder Partnership,
  • Kossem Limited through the Kossem Group Project and also its Smallholder Coffee Farming Project,
  • PNG Coffee Exports Limited in partnership with the  Apo, Angra, Kange (AAK) Cooperatives, and
  • Kongo Coffee Ltd through its proposal for Sustenance and Promotion of Specialty (Elimbari) Coffee. 

Mr Anis said the assistance will be directed directly to the smallholder coffee growers identified in the signed contracts with management services provided by the lead partners and the PPAP project management unit will do the monitoring and evaluation of the contracts.

The signing was witnessed by representatives from national and provincial DAL, World Bank, Department of Treasury, Care International, Farmset Ltd, University of Goroka and the farmer groups. 

World Bank Operations Manager Allan Oliver congratulated the six project partners for their successful bids after a stringent screening process and the eventual signing of the contracts and said the onus is now on the project partners to implement the projects. 

DAL Acting Deputy Secretary for Policy and Planning, Masayan Moat said the PPAP facility is essentially owned by coffee and cocoa growers.  The government failed to implement the much talked about NADP project but now with proper implementation guidelines and with assistance from the World Bank this now seems possible and the PPAP model could be adopted for other crops as well. 

Assistance Secretary for the World Bank Desk at the Department of Treasury Damien Horiambe said the success of the project now depends on the industry players and the government will continue to support them where ever they can. 

Various coffee growers from the six contract recipients express great delight for the PPAP facility to support genuine coffee growers of PNG. 

Under the total amount, K5.8 million will be contributed by the PPAP project, the lead partners and co-partners will contribute K2.25 million as sweat equity and K450, 000 as cash contributions.

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