PNG Government Protects Local Industries

By: Andrew A
4th December 2017

The PNG Government has take a bold stand in protecting the local industries with an increase in tax for competing products.

These ‘Protectionary Measures” by Government will ensure that the local industries will thrive and be abel to have an upper-hand in competing with similar products from overseas.

Similar protection is offered to local beef suppliers and other agriculture based companies operating in Papua New Guinea which are partly owned by locals.

The revived Ilimo Farm which has seen an investment of K128m will employ over 150 fulltime staff and produced 13 million litres of dairy products. The dairy farm will produce a range of products from milk, yogurt, ice cream and other dairy snacks.

A similar farm will be setup in Lae

 

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The National

7th September 2017

THE Ilimo Dairy Farm in Central will cost about US$41 million (about K128m)  to complete, says National Planning Minister Richard Maru.
He recently visited the farm to see the progress.
The project is being developed by Innovative Agro Industry Ltd.
Ilimo Dairy Farm is located in the Kairuku-Hiri district of Central.
The shareholders equity partners of the project include IAI at 50 per cent, the government at 20 per cent and Central government owns 30 per cent.
Further financing, facilitated by IAI, is provided by Bank Leumi, of Israel. The farm is expected to create employment for more than 150 fulltime employees.
It is estimated that Papua New Guinea imports around 13 million litres of dairy products annually.
At full capacity, the Ilimo dairy farm will produce five million liters of dairy products annually, including fresh milk, flavoured milk, yogurts, icecream and other dairy snacks.
By replacing imports, the farm is expected to slash consumer prices by at least 40 per cent.
Maru was briefed about the construction phase, which is expected to be completed by November, with products on the shelves by next January.
The dairy cows have arrived from New Zealand and are at the facility.
“Putting cash into the people’s hard work is starting a programme of finalised inclusion,” he said.
“We need to engage our people now and stop the rhetoric of the inclusion slogan of ordinary hard working Papua New Guineans and inject much-needed cash into local economies.”
“llimo Dairy is scheduled to be completed within a short 12-month period, is yet another example of the government’s public-private partnership programme, which continues to create a wealth of opportunities for our people.
“We are helping our people to spend money locally while creating opportunities at the village level. In this particular partnership, IAI have proven once more that they are serious about developing the agriculture industry in Papua New Guinea.
“The government is deliberately investing in the dairy farm to reduce the importation of over K400 million in dairy products that Papua New Guinea imports
annually, which we can produce locally.
“Papua New Guinea will need a further three to four dairy farms of the same size as lllimo to produce enough volumes of dairy products to meet our needs.
“The government will be working with the Morobe provincial government to identify suitable land for the setting up of our second dairy farm in Lae depending on the success of the farm and processing plant at IIlimo.”

http://www.thenational.com.pg/ilimo-farm-ready-milk-opportunities-cut-imports-pleasing-says-minister-maru/

 

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Abel’s 100 DAY PLAN explained

100 DAY PLAN EXPLAINED IN PARLIAMENT

1st December 2017

The 100 Day, 25 Point Plan expires on the 2nd of December, and in the light of prevailing circumstances was and is intended to demonstrate proactive and inspire confidence and kick start the Alotau Accord II by understanding specific activities around.

  • MAINTAINING FISCAL DISAPLINE AND BOOSTING FOREIGN EXCHANGE
  • GROWING OUR REVENUES
  • STRENGHTENING OUR ECONOMIC BASE AND IMPROVING OUR GOVERNANCE and
  • ACTING STRATEGICALLY

 

These activities obviously roll into point 1 and 2of the 25 Point Plan which are the 2017 Supplementary and 2018 Budgets.

The intention of points 1 and 2 was to maintain fiscal discipline in the light of the prevailing difficult circumstances in terms of our budget parameters of 2.5 % fiscal deficit and debt to GDP of 30% so as not to put more stress on government financing and the economy.

A number of measures were undertaken to maintain the discipline but primarily as per Point 4, and thanks to the understanding of Honourable Members of this Parliament, the Service Improvement Program was reduced in 2017.

Pont 3 was related to payroll strengthening and the Ospeac (Organisation, Staffing and Personal Emoluments Committee) has been reactivates and is progressing a payroll audit and cleansing exercise and the NID registration requirements as explained by the Minister for Public service in Parliament. This is response to the primary cost escalation factor of Government which is the unsustainable growth in personal emoluments.

Point 5 was for;

  1. The drawdown of the balance of the Credit Suisse loan of which two technical requirements will have been met following the budget session enabling the final balance to be drawn.
  2. To access World Bank and ADB Budget support funding for the 2018 budget. This has been achieved following my trip to Washington where the world Bank will provide US$100m for debt restructuring in 2018 and another $100m in both 2019 and 2020. The ADB is also providing budget support commencing in 2018 for the health sector for up to US$300m commencing in 2018.

These measures provide financial resources at good terms and bring in foreign exchange.

 

Point 6 was for ;

  1. Oil search to provide a minimum of 50% of the crude oil needs to the Napanapa Refinery and in Kina terms. This has been achieved through an agreement and is happening.
  2. Transition to gas powered electricity – The Pom Gas 58MW electricity project has been approved by Cabinet and has commenced construction to provide the cheapest in the country power source using our own gas and all sales dominated in Kina. The power plant will be owned d by oil search and Kumul Petroleum with shares to be taken up by MRDC. The availability of domestic gas can catalyse other gas powered initiatives.
  • Rice production – the lrice quota scheme has been delayed and 3 large scale rice projects are being developed with 3 separate private sector partners and potential support in the 20187 budget through the Agriculture Commercialisation Fund.
  1. The Bank of Papua New Guinea intervention into the forex market was US$100m is done. The BPNG is now conducting a review on all foreign currency accounts and the oligations od those account holders, particularly resource companies to remit excess funds back to PNG.

 

Pont 7-  For non-tax revenue collecting agencies to remit 90%  of their revenues to CRF has commenced and with some immediate action with specific agencies and will be reinforced by the Public Money Management Regularisation Bill 2017approved by Cabinet and to be tables in conjunction with this budget.

 

Pont 8 and 10 – Relate to tax regime reform and this is being managed through the new Medium Term Revenue Strategy, developed in conjunction with the IMF and a new tax Administration Bill which I will bring shortly. Measures will commence in the Budget to tidy up the tax code and the BPNG, IRC, IPA and commercial banks and cooperating to enforce compulsory Tax Identification Number requirement for opening bank accounts. The commercial banks have agreed to provide information to the IRC regarding bank accounts. The commercial banks have agreed to provide information to IRC regarding bank account being operated in a business manner for further scrutiny. Significant funding support is provided in the 2018 budget for both the IRC and the Customs to boost capacity against quantified additional revenue collection

 

 

Point 9 – The establishment of the task force for IRC, Lands, Customs and Illicit Trade. Funding has been provided in the Supplementary Budget and the Attorney General, Labour and Immigration Ministers are leading the Customs and Illicit Trade, Lands Minister- the Lands task force and Treasurer – the IRC task force.

 

Point 11 – Progress of some significant resource development projects and Wafi Golpu, PNG LNG expansions, Papua LNG are all on track for early works, pre FEED or FEED in 2018. Western LNG has announced pre FEED works last month.

 

Point 12 – The launch of the new Australian DEFAT grant funded project, the PNG- Australia Economic and Social Infrastructure Program and ANGAU Hospital re-development design and still pending, and the TB project co-funded with the World Bank has had the financing documents executed already.

 

Point 13 – The power projects;

  1. The 58MW Pom Gas project construction has began
  2. The 30MW PNG Bio Mass project with Oil Search is in progress
  • The Ramu 2 180MW Project has had commercial close via a Cabinet decision but is pending financial close due to certain conditions precedent.
  1. Naoro Brown River Hydro Project is progressing with funding from the World Bank
  2. Hela Gas power solution is being negotiated with Exxon Mobil and Oil Search. In the meantime funding is provided in this budget to pull the powerlines from Mendi to Hides to provide the missing power and NBN telecommunications link to access power to communities from the Ramu Grid and surplus from the Tari existing generator.

 

Point 14 – Certain High Impact Projects

  1. The international submarine cable from the Australian Government has now offered to fund from Sydney to Port Moresby and Port Moresby to Honiara, PNG will own these 100% and 50% respectively and will substantially increase reliability and lower cost of data in PNG some 25 times.
  2. The Pacific Maritime Industrial Project has had a few financing agreements signed with the China EXIM Bank.
  • The Sepik Plains agriculture Project together with Baya Valley and the Central Plains are identified for large scale rice production as described earlier.

Point 15 – The commercial of the US$1 billion upgrade of the Highlands Highway of which the Project Management Unit has been established at Works and contracts have been advertised for supervisory contractors. Work will commence in 2018.

 

Point 16 – The Gerehu 3B Affordable Housing Pilot Project where 1762 allotments have been made available free to qualifying citizens. The earthwork has been completed and power and water services are being constructed. Together with the concessional funding at BSP, this will make housing accessible to ordinary Papua New Guineans and drive construction and employment. It can provide an example to duplicate in other centres.

 

Pont 17 – Commencement of the New Enga Provincial Hospital construction and Mount Hagen Hospital PPP redevelopment plan in 2018.

 

Point 18 – The ceasing of closed tender financing which Cabinet has approved and the bringing forward of the National Procurement Authority Bill which is ready to come back to Cabinet after changes were requested by Cabinet.

 

Point 19 – Requires audited accounts for SOEs and Statutory Authorities by Mid-2018.As treasurer it will be tabling all the reports for the Agencies under my responsibility as soon as they are cleared by Cabinet.

 

Point 20 – Have all prescribed Boards appointed. This is underway, particularly under the State Enterprise Minister and Agriculture Minister.

 

Point 21 refers to thr freeing up resource land owner benefits;

  1. The PNG LNG Land owners vetting issues are ongoing but royalty payments to the plant site land owners have commenced and it is anticipated to shortly resolve the pipeline first payments and the progress to conclusion the clan vetting at the gas fields.
  2. The Ok Tedi land owners CMCA and non-CMCA have funds held in trust that have been cleared by the courts and I am waiting on advice from the Justice Department to authorise some of the pending contracted works against those funds.

Point 22 – Proposed to suspend proposed amendments to the Lands Act, In the IPA Act, the Agriculture Investment Act, the Agriculture Administration Adjustment Act and the Mineral resource Authority and the Mining Act to allow further consultation. This has been done.

 

Point 23 – Refers to the National Energy Authority Bill. This should refer to the Petroleum Authority Bill which is being finalised in Parliament.

 

Point 24 – Refers to progressing the Population Policy and finding has been provided in the 2018 Budget under the Sustainable Development Program at Planning for this.

Point 25 – Refers to Medium Term Development Plan 3 to be published in 2018. This is a 5 year development plan and indicator targets for the government of the day which will incorporate the United Nations sustainable Development Goals.

2018 National Budget – Economic & Development Policies

FOREWARD

It is my great pleasure to deliver the 2018 National Budget which is my first substantive budget as the Treasurer in the new O’Neill-Abel Government. The 2018 Budget marks the beginning of the new Medium Term Fiscal Strategy 2018-2022 that aims to confront the current set of challenging fiscal conditions with vigour, including the current subdued economic conditions and depressed revenue, strengthen the macroeconomic and fiscal fundamentals of the economy, and get the economy moving forward.

At the same time, the Budget will the Government’s social spending priorities and improve the opportunities for people and the standard of living for ordinary Papua New Guineans.

In recent years the PNG economy has endured a series of economic shocks following the rapid growth brought about by the commodity boom and the construction of the PNG LNG project. Commodity prices have fallen and remain relatively low and the severe drought in 2015 added to the difficulties.

A foreign exchange imbalance has developed which has further constrained economic growth, together with rising debt levels and domestic financing constraints. We have had to respond to these shocks by cutting discretionary spending, mostly from the capital budget, which has further suppressed economic conditions.

The shocks have had a much greater impact than initially anticipated and continue to have an adverse impact as we end 2017.

Total government revenue has collapsed as a share of the GDP from 20 per cent in 2012 to 13.4 per cent in 2016 and is expected to decline further to below 13 per cent by end-2017. This has resulted in larger than anticipated budget deficits and delayed the projected return to a balanced budget.

Furthermore, within the overall expenditure envelop, a number of categories have expanded, particularly personnel emoluments and interest costs. As part of its decisive and responsible management of the economy, when the lower economic growth rates were realised, the Government pursued fiscal consolidation with a significant reduction in expenditure over the past few years.

However, given the difficulty of even slowing the growth in these rigid categories of expenditure, especially against a backdrop of the continuation of subdued economic conditions, most of the burden of adjustment fell on the much-needed and productive capital expenditure Budget.

The 2018 Budget and medium-term strategies we have formulated will combat these adverse trends and get the economy moving forward again with some momentum. The strategy will pursue three parallel paths: (i) to halt the declining revenue trend then lift collections onto a higher sustained rising trend over the medium term; (ii) to reign back locked-in and less productive expenditure categories onto more sustainable paths to create space for a lift in more productive capital spending that will get the economy moving significantly forward again; and (iii) improve debt management and cost of financing and extinguishment of the foreign exchange imbalance.

The international outlook is becoming more positive, commodity prices have started to trend higher and international capital, particularly into emerging markets, is starting to expand as investor’s appetite for risk improves. We need to be ready to capitalise on these more positive international developments. The APEC summit in 2018 will allow PNG to showcase its

readiness for enhanced capital and trade flows. The 2018 Budget will provide the platform for fixing our fiscal problems and then building optimism for growth and development.

The Government announced its intentions in a 100 Day Plan to kick start the Alotau Accord 2. The 25 policy actions of the Plan were specific interventions aimed at restoring fiscal discipline, addressing the foreign exchange imbalance, enhancing revenue, strengthening our economic base and improving governance and were reinforced in the 2017 Supplementary Budget. The 2017 Supplementary Budget and 2018 Budgets are Points 1 and 2 in this Plan.

The Accord also operationalises the longer term development plans based on Vision 2050 and StaRS. These will be articulated against specific indicators and sectoral interventions in the upcoming Medium Term Development Plan 3, according to the National Planning Act, 2016. There is a specific focus on reinvigorating growth through SMEs and the tourism and agricultural sectors that will underpin broad based and inclusive economic growth structures.

In the 2018 Budget the Government will establish in the commercial banks a dedicated SME fund of K100.0 million for concessional lending, and an agricultural commercialisation fund of up to K100.0 million. Furthermore, a number of key policies associated with the 2018 APEC agenda will be progressed, such as advancing financial inclusion through financial literacy programs, adopting digital financial services and spreading mobile banking capabilities.

Importantly, the Government will continue to invest in key national infrastructure programs in 2018, particularly, the Highlands Highway, coastal jetties, the missing link roads program, hydro and gas power generation stations, and the international submarine cable project. These are important transformational projects that will reduce the cost of doing business, improve market access for rural farmers, and improve and lower the cost of communications for businesses and consumers.

The Government’s key policy priorities and programs, such as the Services Improvement Program, tuition fee free and free health care programs will be maintained to ensure the board- based consumption and delivery of goods and services to our people.

The 2018 National Budget Expenditure envelope is set at K14,718.0 million against a revenue projection of K12,731.0 million. This translates into a fiscal deficit of K1,987.2 million, or 2.48 per cent of GDP. This is expected to maintain the total debt-to-GDP ratio at just above 32 per cent of GDP, which is well within the approved range of 30.0 per cent to 35.0 per cent of GDP prescribed in the Fiscal Responsibility Act (amended 2017).

The 2018 Budget is consistent with the stringent and prudent fiscal anchors established in the new MTFS 2018-22 which comprise:

  • Lifting the total revenue (excluding grants) to GDP ratio to 14.6 per cent in 2018 and to target 14.0 per cent by 2022;
  • reducing government expenditure from 18 per cent of GDP in 2018 to 16 per cent in 2022;
  • reducing the government debt to GDP ratio to 30 per cent by 2022 and ensuring the sustainability of the debt profile, including the shift towards external financing through budget support loans from the World Bank and ADB and through an inaugural US Dollar bond issuance program;
  • maintaining the non-resource primary fiscal balance on a trajectory that will achieve a zero annual average balance over the medium term (to 2025);
  • ensuring that Personnel Emolument costs are contained and brought down from 49 per cent of total non-resource revenue in 2017 to 31 per cent by 2022; and
  • ensuring that two-thirds of primary expenditure is allocated to key MTDP Enablers and that the public investment to GDP ratio is lifted from 4 per cent of GDP in 2017 to at least 6 per cent by 2022.

To fund the adjustment costs and lift the economic growth momentum, yet stay within the set medium term fiscal anchors, the 2018 Budget will focus decisively on revenue through the first ever Medium Term Revenue Strategy which has been developed with the International Monetary Fund.

The Strategy has had substantial input from the Government’s 2015 comprehensive Tax Review and recent technical assistance from an International Monetary Fund team. Some of the key initiatives to be implemented in 2018, include the establishment of a large taxpayers’ office to improve compliance and tax service, a number of tax measures to raise additional revenue and the announcement of the drafting of a new Tax Administration Act to modernise and simplify tax administration.

The Government is also introducing legislation per the 100 Day Plan compelling all statutory authorities and other government agencies collecting non-tax revenue under statute to remit the collection of those funds to the Consolidated Revenue Fund. The Government has also commenced the process of transferring trust fund balances and assets back into the Consolidated Revenue Fund and enhancing the dividend flows from state-owned enterprises.

Financing the 2018 Budget will be critical and much will depend on the portfolio shift towards lower-average cost external debt and this will be achieved by seeking highly concessional World Bank and ADB budget support funding that will be combined with a US Dollar commercial bond program. The portfolio shift will also: firstly, relieve pressure on the tight domestic security market allowing the development of the less risky, longer term domestic bond market; secondly, increase the level of credit to the private sector; and, finally facilitate the extinguishment of the foreign exchange imbalance.

There are important adjustments to the tariff regime and housekeeping tax legislation.

Overall, the 2018 Budget is a forthright step towards strengthening the resilience of the PNG economy to withstand future economic shocks. It lays the groundwork for fiscal consolidation and it will reignite the economic growth momentum and boost optimism for the future. It will provide the platform to showcase the best of PNG to the world at the upcoming APEC summit.

It is “Time to pull our socks up and go for it”.
I commend the 2018 Budget to the Honourable Members and to the people of Papua New

Guinea.

……………………………………
HON. CHARLES ABEL, MP
DEPUTY PRIME MINISTER AND MINISTER FOR TREASURY

http://www.treasury.gov.pg/html/national_budget/2018.html

 

 

Is the 100 Days – 25 Point Plan Practical and Achievable ?

By Francis Hualupmomi



It appears that the government has admitted that there has to be a macroeconomic discipline in rescuing the current economic situation. And it has put forward a 100-Days 25-Point Plan economic rescue package for the country based on the Alotau Accord II. But is this package realistic and achievable? Therefore, this article seeks to respond to this question.
The Current Economic Situation

Source: ADB 2017 Outlook https://www.adb.org/countries/papua-new-guinea/economy



According to the Asian Development Bank Economic Outlook (2017), the PNG economy has slowed down to 2.0 percent compared to the last four years (see the figure above). But it is predicted to pick up again at 2.5 percent by 2017 driven by mining and agriculture. The slowdown in the economy has been attributed to low commodity prices. This has increased inflation and unemployment, decreased foreign reserves, and affected the national budget.

Macroeconomic Landscape
It appears that the economic approach undertaken by the government over the last four has been one of an Expansionary. At the fiscal policy level, it has been driving the economy with high spending and borrowing at the backdrop of a decade long economic growth. The rationale is simple – utilise the surplus to expand the economy through infrastructure development which will, in turn, stimulate the economy. As a result of this approach, the economy has experienced an infrastructure boom in the economy as has been so far.
At the monetary level, it has been responding to the fiscal policy to ensure that the economy remains stabilised. It is important to note that in a country like PNG, monetary policy approach responds to fiscal policy to ensure stability. In so doing, it controls exchange rate and interest rates which tend to influence inflationary (inflation) behaviour.
Unfortunately, this macroeconomic policy has been affected by an unfavourable condition. There are two related factors, apart from others, that affect this behaviour. First, is that our commodities have been hit hard by low prices in the global market, which we have no control over. As a result of this price fluctuation, the revenue sources have been affected to sustain the fiscal capacity (budget). Because PNG is a resource-dependent economy that relies heavily on mineral and petroleum sectors, a price fluctuation in the global market will directly affect the economy in terms of growth and development. That is one of the reasons why the budget has been cut in certain social and economic sectors.
The second factor is that while the expansionary approach has been good it has not been managed at a sustainable level. What it means is that as the commodity prices slowly began to pick up again there has been a steady increase in the spending and borrowing. The reason is that there is an expectation that price will pick up again as in normal business cycle and sustain the expansionary approach. The downside of it is that it is quite difficult to predict the price fluctuation due to the complex interaction of market forces. As a result of this fiscal behaviour, the budget spending and borrowing has increased the deficit. However, the budget deficit can be improved and incrementally restored to normalcy through a sustainable macroeconomic policy package. Therefore, the next part will discuss this.

The Viability of the New Macroeconomic Rescue Package
The new Deputy Prime Minister and Treasurer, Hon Charles Able, has realised the downside of the expansionary macroeconomic approach. And he has proposed a 100-Days economic package to rescue the economy from further sinking. In essence, this is a 25-Point Plan which has been widely consulted with the private sector and led by some of the senior ministers and economic advisors. While this package may seem unrealistic to some critical commentators, in my view, it is a workable and achievable one.
The 100-Days 25-Point Plan intervention is based on these key strategic economic priority areas:


• Maintain Fiscal Discipline and Boost Foreign Exchange; Growing Our Revenues;
• Strengthening Our Economic Base;
• Improving Our Governance Record, and;
• Acting Strategically
.
First, maintaining fiscal discipline and boost foreign through the growing of revenues. Given the issue of the fiscal problem, practically maintaining a fiscal discipline in a prudent manner will help boost the foreign exchange in many ways. That means controlling and spending behaviour as compared to previous years. And this must be balanced with growing revenues through multiple sources. Incoming revenues must be prudently managed in a sustainable way. What is collected should be spent on strategic priority areas that can bring in higher returns.
In addition, the tax cut will be a balanced strategy. This is because no new taxes will be imposed on ordinary people despite declining revenues. However, this can be recovered through those who avoid or and evade tax. The country has been missing out on the billion dollar extractive industries through tax. For instance, a lot of companies in the mining, petroleum and logging industries have been avoiding or exempted from tax. As result of this, billions of Kina have been going out of the country. These lost revenues could be recovered and help support the budget.
Secondly, strengthening of the economic base is an innovative plan to invest in economic areas that have been ignored. This implies that the economic base must be diversified to boost the economy by way of revenues sources and invested in a lot of baskets to cushion economic surprises. Apparently, the focus on agriculture is pragmatic going forward. It has been a neglected billion dollar sector. Therefore, it is hoped that this will incrementally support and sustain the budget. 
Moreover, while the plan sounds practical, the governance aspect of it is fundamentally critical. The government has been widely criticised by the public for governance issues. And this approach is a noble plan to improve its credibility and international standing. In so doing, it will help its approach in prudently governing and managing the economy. Because investor confidence attracts investment and helps build the economy. Political governance is the strategic driver of economic growth and development at this time and in the long run.
Finally, these plans must be pursued in a strategic way. Every decision requires calculated available options to maximise optimal outcome. The government has chosen the best strategy therefore, it is Directionally Correct.



In conclusion, the economy has been affected due to the changing economic conditions and governing approach. And this has been evident in the current economic situation the country is facing. But this can be arrested through a sustainable macroeconomic approach. Therefore, the 100-days 25-point plan package is a practical one and needs to be incrementally governed and managed in a strategic way.

Francis Hualupmomi is a PhD Student in Public Policy in the School of Government, Victoria University of Wellington. He is a Political Scientist in the area of political economy of energy security, geopolitics of resources, international security, and strategic policy. Views expressed here are his own. francishualupmomi270@gmail.com 

Pangu to create Coffee Ministry 

BY FRANKIY KAPIN
The Pangu party will create a coffee ministry if it forms government after the 2017 national election.
Pangu party leader and Bulolo MP Sam Basil announced on this on Wednesday in the Kabwum district, Morobe province.

Pangu plans to create a coffee ministry when it forms Government

The deputy opposition leader was in the district to endorse the nomination of Haring Qoureka,the Pangu party candidate contesting the Kabwum seat left vacant by Bob Dadae who is now the tenth Governor General of Papua New Guinea.
Mr. Basil said apart from the existing agriculture ministry in the national government there will also be the creation of the coffee portfolio.
He said the current government has allocated K700 000 to agriculture but a Pangu-led government will see the creation of a coffee ministry allocated K1 billion.
He said from a total of K2 billion budgeted annually for agriculture, K1 billion will go to the coffee ministry.
Basil said for the past nine years serving in the government and opposition he has been able to deliver services as expected and now the manifestation of his leadership in the Bulolo district serves as the basis for endorsing ten candidates to contest the ten seats in the Morobe province.

Trukai expanding investment in local rice production

By: Jonny Andrews

Competition is by far the greatest phenomenon that has happened to mankind!

Decades and decades of Rice Monopoly is about to go up in smoke when the Government puts in-place plans for Naima to grow rice in Papua New Guinea. What does Trukai do in this instance? Do they fight the Government? Do they cry wolf? They do what is the most logical thing to do and what the Government hoped they do.

Trukai now has expand their plans! They go into a 500-hectare rice plantation and want to invest more locally!

This the beauty of competition…..at the end of the day, you see investment coming into Agriculture sector and into Papua New Guinea. We need more local invest, more local employment and more of food security.

Well done Trukai!

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BY: Loop Business —14:07, February 22, 2017

This week Trukai Industries Limited is purchasing agricultural equipment for the establishment of the largest rice crop in PNG’s recent history.

 

With the cooperation of the Chingwam Rice Growers Cooperative, Trukai will be establishing a 500-hectare rice plantation near Rangiampum initially for a rain fed crop to be established in 2017.

This is in addition to the existing 80-hectare site already producing rice for the cooperative, under the management of Trukai’s rice development team.

This site will be progressively expanded possibly up to 1,500-2,000 hectares over a number of seasons, although this will be subject to relevant agreements and climatic and soil evaluations.

22pr_trukai_rice_production
Trukai Rice Field in Markham

This exciting step forward in domestic rice production comes ahead of further developments Trukai management are hoping to discuss with government, following submissions for large scale irrigated rice growing in a number of areas across PNG.

Proposals have been submitted to the Departments of Agriculture and Livestock, and the Department of Trade, Commerce and Investment, although responses from government have yet to be forthcoming.

Trukai Industries Limited’s CEO, Greg Worthington-Eyre said in a statement, “Trukai stands ready to assist the government of PNG in its domestic rice development, and this project with the Chingwam Cooperative is a major step forward in laying the groundwork for other projects.

Whilst we wait for the government to respond to our proposals, we are simply getting on with it, and are very excited about building a strong local rice industry.”

Worthington-Eyre went on to add, “The establishment of the large scale site at Rangiampum will be supplemented with a further 100-hectare site closer to our Erap facility, where our rice seed generation plantation is being redeveloped.”

In April and May this year, Trukai will be installing a hulling mill in Lae to facilitate the processing of locally grown rice, and this represents a significant investment and commitment for Trukai.

trukai01
Workers checking the quality of rice

The first rice to be processed at this mill will be the rice from the Chingwam Cooperative.

Worthington-Eyre concluded, “The rice growing at Rangiampum is expected to be harvested in April this year, and will be transported to Lae for milling and blending.

“Our rice, PNG’s favourite brand since 1970 (before federation) will contain rice grown in PNG.

“This is great news as not only will we be including locally grown rice in our products, food security gets a major boost as well and, more importantly, this puts money into the rural sector for use of land that would normally remain idle.”

http://www.looppng.com/business/trukai-expanding-investment-local-rice-production-52957

HE WHO PLANTS FIRST, REAPS EARLY!

By: Andrew Arthur

The Agriculture Sector is about to get a Major Shakeup!

As the campaigning of forming the next Government heats up. Each Political party would want to be seen as the Government for the people and wants to connect to the people. Major policy pushed would be a returned to the Agriculture Sector …

First to fire their Policy is Pangu Party with a funding of K2billion promised for Agriculture! K1 billion to be spent on Coffee and Cocoa as they believe would earn more. The other K1 billion is to be spread across other agriculture sectors.

The reality is…according to FAO, coffee is listed number 22 of the most important and high earning crop and cocoa is not listed in the top 52 at all!

hydroponics-solves-food-security-issue
Hydroponic solves food security issues

Pangu would be guilty of making the same mistake they did in the early 1980’s………..

What this country needs is to invest into the right product…..look at the list attached, pick the Top 30 and invest into that according to priority.

Food Security is what is Needed the Most! Invest into Food Security as oppose to investing into Coffee and Cocoa!

1. Rice
2. Cattle Farming
3. Poultry Farming
4. Piggery
5. Tomatoes, beans, onions etc…

This is where the people in Papua New Guinea want us to invest in….this is what put food on the table

Invest in Food Security!

——————————————————–
Pangu Pati will invest into AGRICULTURE when in Government.

Today PNG’s Economy depends on 80% Non-renewal resources & 20% Agriculture export earnings, it was the other way around when we took independence in 1975.

Pangu Pati plans to invest at least K2b into agriculture with a billion directory into Coffee & Cocoa expansion and extension programs.

Coffee to become MINISTRY of COFFEE while cocoa to be the same as both are currently earning K500m into our economy from export earnings.

The investment into the two leading cash crops will see a 15 to 20 years timeline to increase production to earn over K2b plus into our economy.

Expansion and extension programs will see an annual investment K200m each into coffee and cocoa programs.

Agricuiture Ministry will be the leading ministry once again under Pangu Pati with coffee and cocoa to independently branch out into ministries of their own.

The rural population and business groups will participate more into agricuiture to feed PNG the world.
Agricuiture is sustainable and safe investment that PNG must quickly invest into to reduce our reliance on non-renewals.
The National Pg 7 07/02/17

most-valuable-crop-livestock
Most valuable crops and livestock according to FAO
16473502_10155141976821614_9182958399000375870_n
Pangu wants to invest in Coffee and Cocoa with K1 billion