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Assessment of price support schemes for tree crop export industries in Papua New Guinea and policy recommendations on future assistance
Project ID
ADP/1994/008
Project Country
Commissioned Organisation
University of New England, Department of Agricultural and Resource Economics, Australia
Project Leader
Dr Euan Fleming
efleming@metz.une.edu.au
Phone:
02 67 732775
Fax:
02 67 733281
Project Budget
$313,359.00
Start Date
01/01/1996
Finish Date
31/12/1998
Extension Start Date
01/01/1999
Extension Finish Date
30/06/1999
ACIAR Research Program Manager
Dr Donna Brennan
Overview Objectives
Policy makers need to know how alternatives to the Agricultural Guaranteed Price Sheme (AGPS) will affect each industry's farmers, productivity and exports, and the national economy. There is little information on the effectiveness of past economic policies in PNG. However, Australia's agricultural industries provide some examples of price support and stabilisation schemes.
Project Background and Objectives
Farmers in Papua New Guinea (PNG) produce coffee, cocoa, coconut oil, copra and palm oil, among other things. These tree crops are significant exports, besides employing many workers in rural areas.
The Government of PNG has had a policy of intervening when world prices for exports fluctuate. Commodity boards and corporations have used commodity price stabilisation schemes. However, during the late 1980s the prices for cocoa, copra, palm oil and coffee were low and the stabilisation funds ran out, These industries sought loan funds to maintain their farm-gate payments to producers.
Supportive payments are triggered when prices fall below a threshold. In 1994 world prices rose substantially for coffee, coconut oil and palm oil, so the trigger prices for these have now been lowered. Nevertheless, the AGPS is expected to run for its full five-year term, until early 1998, at a cost approaching K500 million.
Location
There are no project locations defined for this project.
