Felix Bablis (Team Leader) Will Akus (Team Member) FRESH PRODUCE SUB SECTOR REVIEW Draft Report February 08th to March 22nd 2010 ARDSF Felix Bablis (Team Leader) Will Akus (Team Member)

Outline of Presentation Aim of the Review TOR Methodology Review of Secondary Literature & Documents Development Domain Workshop Report Project and Program Formulation for the 6 Thematic Areas. Summary of Key Findings Recommendations

Aim of the Review The Review should provide FPDA with a well informed and widely scoped information base that can be used in its program formulation process.

Introduction FPDA is a public corporation tasked by the PNG government to develop the fresh produce industry from production to marketing. FPDA together with NARI as its research partner has rescued potato as a commercial crop after late blight disease struck in 2000. FPDA continues to assist at its own costs , semi –commercial farmers develop and market a whole range of fresh produce to centers of Demand, nation wide. FPDA has operations in Hagen, Simbu, Goroka, Kaiantu, Lae and Rabaul.

1. Audit of Past /Current and ongoing work programs of FPDA. TOR 1. Audit of Past /Current and ongoing work programs of FPDA. a. Review of Past and current/on going work on information dissemination on fruit and vegetable production. b. Identification of constraints to growth of the sub sector and advise on improving the fruit and vegetable industries at FPDA. (FPDA Annual Reports should highlight current achievements and challenges) c. This audit would be done in the context of the 6 thematic areas.

2. Comprehensive and detailed analysis of the fresh produce sub sector. a. This includes the internal fruits and vegetables sub sector including agro ecological zones and various actors in the value chain b. This includes the external environment in which the fruits and vegetables sub sector operates in. Key areas will be the national economy and development objectives such as NADP, Food Security Policy and regional and international collaboration and trade in fruits and vegetables.

Methodology The Fresh Produce (FP) sub-sector review is a critical action research of how FPDA should implement the AR4D model through their work programs to achieve universal human development goals. These are goals such as poverty alleviation and others as specified in the Millennium Development goals and MTDS for the PNG government.

The study aims to ascertain through SWOT analysis , how organizations like Fresh Produce Development Agency (FPDA) and National Agriculture Research Institute (NARI) have factored in the Agriculture Research for Development (AR4D) model into their work programs under the 6 thematic areas of their strategic programs.

The Key Research Questions in each of the 6 thematic areas are ; What are the Strengths ? What are the Constraints? What are the Opportunities? 4. What are the Threats? 5. Why does this situation in 1 - 4 exist ? 6. What Projects/ Programs are necessary to develop the strengths and opportunities ? 7. What Projects/ Programs are necessary to mitigate the threats and constraints ?

When in contact with the NARS team (FPDA or NARI) through a workshop or group meeting, the following would be undertaken; * Inception meeting to refine and adopt the proposed analytical framework and methodology. * Review of appropriate secondary sources on the Fresh Produce sector. These should include but not exclusive ; 1. Annual reports of FPDA/NARI 2. Various FP/NARI sub sector studies of the past 3. Corporate and strategic plans of the organization 4. Development domains being interacted with 5. The role of innovations being incorporated into the value chains identified 6. Discuss possible recommendations with the team. 7. Verify data collected from individual sources 8. Ascertain the possible acceptance, ownership and stewardship of the emerging recommendations.

Other stake holder impacted organizations in the value chain were consulted where possible and necessary to ascertain or validate the impact of the NARS input into the fresh produce system. As time allowed sampled stakeholder organizations were consulted such as ; 1. Retail sources 2. urban markets 3. Fast Foods 4. Institutions 5. Hotels 6. Commercial outlets.

Review of Secondary Literature & Documentary Sources To be read out and if copies available then could be circulated.

Analysis of interviews done To be circulated and or read out.

Preliminary Outcomes (Emerging Findings) based on Interviews/ Literature Reviewed The Fresh Produce Sub – Sector Study has identified a need to do feasibility studies on the viability of each crop for potential development into a commercial commodity and in the long term an industrial export ready crop. There is need for better collaboration amongst and between the various institutions in the value chain of each crop or vegetable.

Preliminary Outcomes : Emerging Findings (Continue) 3. Value Chain is dependent of how far it can be stretched. In general, the shorter the better. Thus, the setting up of freezing depots in Simbu and Kainantu. Large scale peri-urban (30 mile radius to urban areas) farming as opposed to long distance carting would keep costs low. Market Demand is higher than domestic supply in large urban centers like POM. Service providers like trucks and airlines still have constraints that would require further public capital investments. Eg. Upgrading the Okapa – Rapinka Road in Kinantu would greatly improve the capacity of Kainantu Freezing Depot to then ship to Lae sea port or Nadzab Airport. 4. R & D and M & E are areas left to donor assisted research such as the NZAID’s ISP and others. 5. Differing priorities, whereby NARI has different priority to FPDA.

The reason is each institution as established has responsibility for certain aspects of a crop or vegetable only whilst the rest of the value chain issues are left to another agency or industry. Again in vegetable production NARI is responsible for the research and development (R &D) at the productivity level , whilst FPDA is responsible for the rest of the value chain under the five remaining thematic areas in this case.

Preliminary Outcomes (Continue)… 6. Potatoes Blight disease is about 1- 2 years from finding a resistant variety. 7. The huge informal market is still an unknown but needs to be known. Thus, a study to ascertain the value of that market is needed. 8. The focus of FPDA has been to produce and supply the coastal markets with temperate fresh produce. It makes good business sense to also consider supplying the Highlands market with coastal crops such as taro, casava and coconuts. 9. Fourth there is need for a seed system and distribution system to be established. We will leave the rest for later … Thank you. Felix Bablis & Will Akus…