Improving the marketing system for fresh produce of the highlands of PNG

• National Agricultural Research Institute, Papua New Guinea
• Fresh Produce Development Corporation, Papua New Guinea
• University of Technology, Papua New Guinea

The Papua New Guinea (PNG) highlands, home to about one-third of the national population, is characterised by subsistence agriculture and rural poverty. Soils are rich and productive. High-quality produce can be grown organically all year round in this area and produce from the highlands could meet the needs of PNG's coastal cities and supply offshore markets. It fails to do so because of an inadequate marketing system. Marketing is made difficult by the long and complex supply chains between producing and consuming regions, and there is a growing trend for supermarkets to source their fresh produce from offshore. An effective marketing system for fresh produce could provide a cash income, empower women (who are mainly responsible for the cultivation) and significantly improve the economic situation of PNG's highlanders. Improving the marketing system for produce from the highlands is a high priority of the National Food Security Policy of the PNG Government, and two producer groups have already been formed in the Highlands by farmers keen to improve their marketing of fresh produce.

The project is improving the marketing system for fresh produce grown in the temperate zone of the PNG highlands, by facilitating processes that will improve the supply chains by land, air and sea, and by enhancing the capacity of relevant people and institutions in PNG.

This project had three phases - research, development and capacity building. In the research phase, members of the project team investigated the existing marketing system and relevant institutions, and determined how the system could be improved, either by removing constraints or building on capacities. The research involved analysis of external factors such as public infrastructure, legal and political issues, and competitive environments, and internal factors such as consolidation, management of orders, packaging, handling, storage, transport, warehousing, wholesaling, retailing, market information, alliances among producers and alliances between producers and retailers. It considered how to improve the flow of product from producer to final consumer, and the flow of information from consumer to producer to ensure better understanding of what produce is required and when.

The development phase focused on facilitating change within the land-sea chain (for bulky, less perishable produce) and the land-air chain (for highly perishable, high-value produce), through creative problem solving that emphasised collaborative, stakeholder-directed change.

To build capacity, project members provided training to key collaborating researchers in PNG and stakeholders in the fresh produce marketing system (including the two producer groups that have already formed, and the extension advisors working with them). Capacity building was achieved through two short courses and by involving the collaborating staff and stakeholders in the research and development phases of the project.

The project used a participatory action research methodology, where the specific objectives were:
to map the existing marketing system, identify the constraints and capacities for change and evaluate the potential for improvement;
to facilitate a process of socio-economic change using collaborative problem-solving among the major stakeholders of the marketing system;
to enhance the capacity of relevant people and institutions in PNG.

The original project lasted for 3 years from January 2003 to December 2005. This was subsequently extended, first from January 2006 to December 2006 and then from January 2007 to June 2007.

The mapping of the marketing system suggested that there were very significant physical/technical and social constraints. The most significant physical/technical constraints were thought to be: (a) lack of marketing infrastructure; (b) poor postharvest management practices (handling, storage and transportation). The most significant social constraints were thought to be: (a) poor buyer-seller relationships; (b) social practices and attitudes that worked against the full participation of women and youth in the marketing system.

Pivotal in moving from the research to the action phase were the stakeholder planning workshops. The workshop participants came from all levels of the value chain (e.g. farmers, wholesalers, shippers and retailers) as well as government officials (national and provincial). The workshops, facilitated by members of the project research team, aimed to develop action plans based on consensus of the workshop participants. This was achieved, and the action plans agreed upon led to a variety of actions aimed at relieving the physical/technical and social constraints. These included:
(a) an infrastructure initiative to encourage consolidation of produce in the Highlands
(b) initiatives to improve postharvest quality management (including development of a postharvest resource manual)
(c) studies on identifying constraints and determining how to enhance the role of women and youth in the fresh produce marketing system
(d) studies aimed at improving understanding of the preferences of customers (e.g. supermarket managers and institutional buyers) and consumers.

By design, this project has been about 'making a difference'. Hence, each of the above actions has attempted to generate its own specific impacts on the fresh produce marketing system. However, more generally, the project has been about trying to 'make a difference' in the way the stakeholders think about their industry and how they respond to the challenges they face.