The project has made significant progress in several areas, and highlights of outputs to date are summarised below:

Objective 1: During the 05-06 peanut growing season, large scale seed multiplication of selected peanut varieties was undertaken at Ramu Sugar to facilitate seed supply for the on-farm trials in the Eastern High Lands, Upper and Lower Markham Valley regions. National Agricultural Research Institute (NARI) has made arrangements with Ramu Sugar to procure the pure seed of all peanut varieties for long-term storage at NARI HQ at Bubia and Aiyura.

Objective 2: During the 2005-06 season, the PNG collaborating institutions, i.e. NARI, Ramu Sugar and Trukai Industries, conducted a total of 18 on-farm trials in the Eastern High Lands, Upper and Lower Markham Valley, in collaboration with local farmer groups, to evaluate new varieties and management practices on farmers' fields. Active participation of researchers and farmer groups in the on-farm trials resulted in the strengthening of linkages between farmers and collaborating research institutions.

Substantial yield benefits were observed from the combination of improved varieties and improved practices across all sites, with the yield benefits ranging up to 100% in EHP, 60% in Markham Valley. Local varieties with improved practices also gave up to 40% higher yields than the local varieties grown with local practice at most sites. However, yield advantages from the improved varieties alone (with local practices) were variable across sites. The trials have clearly demonstrated the scope for improving peanut production at small holder level in PNG.
At the locations which experienced severe end-of season droughts (Lower Markham Valley), the improved varieties have yielded significantly better than the local varieties by escaping end-of season droughts demonstrating better adaptability of short duration varieties to drier environments.

Peanut field shows and grower meetings organised by the project teams have generated significant awareness amongst growers about the new peanut varieties and management practices, including the harmful effects of aflatoxin contamination.

Mini-column equipment for aflatoxin analysis has been installed at NARI, Aiyura in Eastern High Lands and Ramu Sugar (Upper Markham Valley) research stations. Project staff from NARI, Ramu Sugar and Trukai Industries received hands-on training on the mini-column technique. Following the training, project staff have been able to conduct aflatoxin analysis of peanut samples collected from the seed village trials. It is expected that the capacity building for aflatoxin analysis should result in effective monitoring of aflatoxin contamination and development of aflatoxin minimisation practices.

A survey conducted on the role of women in peanut production in Lower Markham Valley showed that peanut contributes 75% of total household income and women in the Lower Markham have two major roles in decision making, one relating to cropping (i.e. crop and variety, time of planting) and the other related to childcare. Women also play a major role in sourcing peanut seed, weeding, marketing and planting. The survey has identified four major training needs for women i.e., soil fertility, booking keeping, pest/disease control and new strategies for peanut marketing.

Objective 3: The analysis of the satellite images of a peanut growing area in the Upper Markham region demonstrated that peanut crops could be distinguished from other land cover types based on the differing Infra Red reflectance from peanut canopies. A comparative analysis of two satellite images showed that the QuickBird imagery is superior to IKONOS. However, the IKONOS satellite orbits over PNG at a 2 day interval as opposed to 7 days for QuickBird, which means that in the event of >10% cloud cover over the target area , which is very common for PNG, a re-attempt at the capture using IKONIS can occur within a shorter period of time with IKONOS.
Although the image analysis technology have proven successful in identifying peanut crops and assessing the crop vigour, the constant cloud cover that shrouds PNG created some concern on the future effectiveness of satellite imagery technology in this region, although this was alleviated to some degree by the repeat frequency of the IKONOS satellite .
In Australia, a high resolution QuickBird satellite image was acquired over the southern Queensland township of Wooroolin in March 06. Application of advanced Image Analysis techniques in conjunction with the ground truthing of crops showed that the remote sensing has the capacity to not only directly identify the spatial variability of crop vigour but also derive accurate predictions of pod yield and maturation level from variations in canopy reflectance. This information can provide a grower with the ability to assess spatial distribution of yield prior to harvest as well as make more informed decisions regarding harvest management.

Objective 4 After extensive consultations with the PNG and Australian Peanut Industry stake holders, a strategic document outlining the peanut industry needs and expected outcomes of the proposed market study has been developed A suitable consultant with wide experience in PNG and Australian Peanut Industry as well as global peanut market has been identified. The contract agreements between QDPIF and the consultant have been signed off. It is expected that the scoping study reports for PNG and Australian peanut Industries will be available by the end of March 07.

Objective 1: Having developed capability to undertake large scale peanut production, Ramu Sugar Ltd. has multiplied about 13 tons of selected short and medium duration peanut varieties during the 2006-07 season. About 4 tons of seed has been supplied for use in on-farm trials in the Eastern High Lands, Upper and Lower Markham Valley regions.
The National Agricultural Research Institute (NARI) has procured pure seed of 22 short duration peanut varieties from Ramu Sugar for long-term storage at Bubia and Aiyura research stations.
Objective 2: During the 2006-07 season, a total of 12 on-farm trials (called 'seed village' trials) were conducted in collaboration with local farmer groups in the Eastern High Lands, Upper and Lower Markham Valley. The seed village trials were aimed at demonstrating improved varietal and management practices on farmers' fields.
Yield benefit from the improved practices (comprising row planting, seed treatment, fertilization and plant protection) ranged from being marginal to highly significant (up to 1.5t /ha) compared to local practice. Varietal responses varied across sites. There were marginal yield differences between local and new varieties in most locations although new varieties (ICGVs 94299 and 94341) had higher pod yields than local varieties at some locations in the Lower and Upper Markham regions. However new varieties had greater kernel yield in general due to better kernel to shell ratio and kernel size compared to local varieties. The trials have clearly demonstrated the scope for improving peanut production using improved practices and varieties at small holders' level in PNG.
Installation of the mini-column facility along with hands-on training provided in the Ist year enabled the project staff to quantify aflatoxin contamination independently. A total of 219 samples collected from 2006-07 seed village trials were analysed. Results showed that there was little aflatoxin contamination in the samples collected from the High Lands, while 60% samples from Markham valley recorded alarming levels of aflatoxin (>20 to 400ppb). The results agreed with the aflatoxin risk simulated by the APSIM peanut model which showed that in the High Lands aflatoxin contamination was low due to high rainfall and cooler temperatures, where as high aflatoxin risk in Markham samples was due to crops' exposure to end-of season droughts combined with elevated temperatures (which coincided mostly with late planting (beyond Feb) of crops).
Peanut field days and grower meetings organised by the project teams have generated significant awareness amongst growers about the new peanut varieties and management practices, including the harmful effects of aflatoxin contamination.
Active participation of researchers and farmer groups in the on-farm trials resulted in the strengthening of linkages between farmers and collaborating research institutions in the target regions.
A second survey was conduced on the role of women in peanut production in the Lower Markham Valley. The results confirmed the earlier findings that women in the Lower Markham have two major roles in decision making, one relating to cropping (i.e. crop and variety, time of planting) and the other related to childcare. Women also played a major role in sourcing peanut seed, weeding, marketing and planting. The survey has identified four major training needs for women i.e., soil fertility, booking keeping, pest/disease control and new strategies for peanut marketing.
Objective 3: During 2007, high resolution imagery (IKONOS satellite) was successfully captured over the three key locations including Aiyura, Gusap and Erap, encompassing 12 seed village trials as well as a number of village peanut gardens. NARI and Ramu staff exhibited greatly improved competency in the use of both GPS units and image analysis software ENVI as well as ground truthing of imagery. The project staff had hands-on training in interpreting the Imagery by ground-truthing crops in targeted locations and comparing crops spectral reflectance with yield performance.
In Australia, satellite images were captured over dryland peanut cropping areas of Wooroolin and Kingaroy, as well as the partially irrigated environment of Bundaberg and the fully irrigated system near the township of Texas, Queensland
Imagery processing followed by ground truthing of peanut crops has enabled accurate predictions of maturity, yield, foliar disease, soil constraints and irrigation efficiency to be achieved within trials and grower environments. Application of advanced image Analysis techniques in conjunction with the ground truthing of crops confirmed that the remote sensing has the potential to not only directly identify the spatial variability of crop vigour but also derive accurate prediction of pod yield and thus develop regional yield forecasts.
Objective 4 Although contracts for the peanut market scoping study in Australia and PNG were signed off in 2006, there has been a delay in implementing the study, as the contract for the PNG scoping study had to be re-initiated and a suitable candidate for conducting PNG scoping study had to be identified. A new suitable consultant has been identified for conducting PNG component of the market scoping study and the contract has been signed off in late 2007. Now that the two studies are progressing satisfactorily, it is expected that the reports of both Australia and PNG components will be completed by Aug 2008.

Objective 1: Ramu Sugar Ltd. has multiplied about 26 tons of selected short and medium duration peanut varieties during the 2007-08 season. About 4.7 tons of seed has been supplied for use in on-farm trials in the Eastern High Lands, and Lower Markham Valley regions. The project has been able to assist Oro Province natural disaster affected farmers with 0.6 tonnes of seed for the restoration program.
The National Agricultural Research Institute (NARI) has procured pure seed of a total of 49 peanut varieties from Ramu Sugar for further multiplication and long-term storage at Bubia and Aiyura research stations.
Objective 2: A total of 14 'seed village' trials were conducted in Eastern High Lands Province, Upper and Lower Markham Valley regions during 2007-08 season. These trials have demonstrated that peanut productivity of dryland peanut can be increased from the existing 1 t/ha to 4t/ ha using local or new varieties and by adopting a set of improved practices in all the three focus regions. The performance of new varieties over local check varieties was inconsistent across locations. However, new varieties were superior in their kernel characteristics (i.e. smooth shell texture, high kernel: shell ratio, uniform/larger kernel shape and size) and better suited for processing (roasted and butter) and market, compared to local varieties. It is expected that varietal refinement will continue to match varieties to future markets.
The preliminary cost benefit analysis of management practices indicated that net profits of up to K2500/ha could be achieved from adopting new practices. More location-specific research is needed to identify and optimise the key factors contributing to the yield benefits.
The experience gained by the collaborating agencies on the varietal and management practices, coupled with technical expertise from QPIF researchers led to publication of Best Management Practice Manual for growing peanuts in PNG. The manual was published by ACIAR as a 77-page monograph. (No 134), which was launched by the Queensland's Primary Industries & Fisheries Minister, Mr Tim Mulherin on 30th Oct 2008, during his visit to a trade show in PNG.
Installation of aflatoxin analytical facilities and training of staff at NARI and Ramu Agri-Industries has enabled these institutions to monitor aflatoxin contamination in peanut samples, independently. The results from the seed village trials showed that while the pre-harvest aflatoxin contamination was low (<20 ppb) in EHP, crops planted during February to July period in the Markham region had high frequency of aflatoxin contamination with levels of >200ppb recorded in some samples.
An understanding of climate variability, soil water dynamics, aflatoxin risk profile and the relative importance of results across a range of agro-climatic conditions has enhanced application of crop simulation modelling in PNG environments. There was a good agreement between yield and aflatoxin contamination observed in field trials and that simulated by the APSIM peanut model, suggesting that APSIM peanut crop model can be used as a tool to assess environmental effects and develop strategies to achieve high yield and quality in various peanut production environments in PNG.
Objective 3: A number of the 'seed village' trials were imaged during the 2007/08 growing season, however, due to extensive cloud cover, only two of the trials Martin (Lower Markham) and Kubiufa (Eastern Highlands) were successfully captured.
A major outcome from this imagery work and associated project staff training is that both Ramu Sugar and Tukai Industries have undertaken their own image ordering, processing and ground truthing as part of their commercial operation, independent of the project.
As a result of continued and extensive cloud cover over Australian areas of interest, the acquisition of satellite imagery was greatly hampered during early 2008, with a repeat capture over the Wooroolin dryland peanut growing region unobtainable. However satellite imagery was captured over two additional intensive peanut cropping regions near the township of Bundaberg, Queensland and Katherine in the Northern Territory.
Satellite imagery technology has proved to be a cost effective tool for the in-season monitoring of spatial variability of peanut crops and peanut yield prediction in PNG and Australia. Results generated by this project have led to early adoption of this technology by the Peanut Company of Australia, as well as Trukai Industries and Ramu Agri-Industries agencies in PNG, with all three agencies purchasing their own imagery. PNG project staff from Ramu Agri-Industries, NARI and Trukai Industries developed a strong understanding and competency in the use of hand held GPS units as well as processing of satellite imagery.
Objective 4: Two peanut market scoping studies were completed. The PNG scoping study focussed on feasibility of downstream processing industry, while the marketing study in Australia focussed on the feasibility of hi-oleic peanut oil industry.
The market scoping studies have provided an insight into the state of art of markets for peanut and peanut products in PNG and Australia and in particular, peanut oil in global markets. The scoping studies suggested a potential for domestic and export opportunities of raw peanut kernel and oil for PNG and export opportunities of Hi-oleic peanut oil for Australia. It is expected that the scoping study reports will stimulate commercial players to further explore economic viability of the new market opportunities suggested by the scoping studies. It is hoped that tapping into new markets by the commercial players will increase the demand for domestic peanuts in PNG and Australia.
Through training, participation in annual review meetings and project team meetings, PNG project staff gained scientific expertise in maintaining quality of on-farm research, data analysis and reporting. Researcher managed trials have consistently shown improvement in crop yields, both with new and local varieties.
The project has been able to improve scientific skills of the collaborating scientists in accurate recording of GPS coordinates, and developing shape files of targeted paddocks, processing satellite images by applying appropriate processing tools.
In Australia, the remote sensing and satellite imagery work done in this project received a 'special' recognition by the QPIF management as "revolutionary" science. This research will see a large change to existing agronomic practices with remote sensing becoming a major tool for identifying in-season crop variability, allowing for coordinated agronomy to better manage constraints of economical concern.
The application of crop modelling followed by field validation has enhanced project scientists' understanding about the benefits of appropriate time of planting in the Upper Markham Valley and also the value of collecting daily weather data.
A total of 9 training activities/visits were implemented during the reporting period (six activities in PNG including researchers' visits to Australia and three visits by Australian scientists to PNG).
An external review meeting of the project was held during 9-10 Feb 2009 at NARI, Bubia. The external panel commended the project team for the outputs achieved in PNG and Australia since 2006 and made a set of recommendations on the way forward.