Coffee Sub-Sector Review REVIEW OUTCOME Coffee Sub-Sector Review Findings and Recommendation ARDSF Review Team : Dr. Keith Galgal (Team Leader) Roger Kara (Socio-economist)

Purpose of Presentation Inform primary stakeholder of key findings of Review; Highlight Issues and Gaps; Outline Objectives for Thematic Areas Program Formulation

Order of Presentation Background to Review Terms of Reference CIC Strategic Plan (2008-2018) Development Domains Review Approach Summary of Findings; Way Forward

1. Background Pre-1980’s. Agricultural Research including coffee - DPI Early 1980’s - ISNAR/WB recommended major structure re-organization – Commodity Based Research Institutes; 1986 – CRI was established – first Commodity Based Institutes; 1991 - CRI and CIC

1. Background Pre-1980’s. Agricultural Research including coffee – DPI; Research conducted in remote Gov’t Stations far from the industry; Gov’t accorded Agr. Research low priority over other pressing social and political issues;

1. Background Early 1980’s : ISNAR/WB recommended major structure re-organization : Creation of Commodity Based Research Institutes; Industry Oriented Research; Weak Linkage with Producers and Private Sector

1. Background 1986 – CRI was established – first Commodity Based Institutes: Disciplined Based Research Strong; Emphasis on Coffee Leaf Rust; Poor linkage between Coffee Research and Coffee Extension

1. Background 4. CRI and CIC (1991): Amalgamation to ensure strategic industry driven/demand driven research; Research by Gov’t with input from private sector (through Board); Research – Extension Linkage established BUT still Poor; Internal Reforms (downsizing cost effective Service Delivery)

2. Terms of Reference Main Objective To provide sound analytical inputs into the program formulation process of CIC by undertaking detailed review of the coffee sub-sector in PNG Sub-Objectives Undertake technical audit of current and past R&DE activities; Assess the productive potential of the Coffee industry through detailed analyses of policies and economic importance, agro-ecological zones, production and productive trends and marketing systems and market accessibility; Assess the socio-cultural context and economic status of rural smallholder communities who depend on coffee for their livelihood; Assess the regional and international coffee trade collaboration; Support and contribute to the CIC Planning Taskforce in its Program Formulation Processes.

“Agriculture for Research Development Context” 3. CIC Strategic Plan (2008-2018) CIC – undergoing transformation to deliver on its core responsibilities in regulating the industry as well as fulfilling its developmental mandate. “Agriculture for Research Development Context”

3. CIC Strategic Plan (2008-2018) Thematic Areas Thematic Program Area Thematic Objectives Scaling of Production Optimized scale of production Marketing Systems Effective Marketing Systems Developed Productivity Improvement Enhanced Productive of Farmers and Others Along the Value Chain Information and Communication Enhanced Information Management and Communication Legal and Policy Environment Enabling Cultural, legal and policy environment Institutional Capacity and Strengthening Enhanced Institutional Capacity and Governance

4. Development Domain Domains Based on: (1) Agriculture Potential, (2) Access to Services, (3) Population Density

Eg. PPAP, ACIAR, Coffee Profiling 5. Review Approach Primary Data – Stakeholder Consultation Stakeholders, CIC HQ, IWG’s, PFTEC’s, RGSD; 2. Secondary Data – Literature Review, DAL/CIC Libraries, Website, Archives, interviews. Mindful of very recent detailed work also undertaken with similar objectives Eg. PPAP, ACIAR, Coffee Profiling

6. Summary of Findings Key Findings - General/Generic Same story – sub-sector issues & constraints highlighted by previous reviews, conferences, workshops recommendations CIC extension not reaching the coffee growers Very few research results translated into extension information Coffee research & extension translation records.doc Poor accessibility to services and market Pertinent Law & order Issues Land ownership issues Socio-cultural context - farmers ability to productivity Example cultural contexts cost of coffee + water.doc Coffee extension approach should not be uniform for all .

6. Summary of Findings Key Findings – General/Generic Research and extension capacity under resourced CIC board not fully represented over the years CIC corporate management well focused since first corporate plan Poor communication infrastructure eg. PFTEC poorly equipped Potential to boost its commercial & revenue activities All research & extension programs funded by donors Capacity to manage extension -weak No evaluation of research outcomes

6. Summary of Findings Aging Coffee Trees and no major re-plantings; Thematic Program Area - Scaling of Production Aging Coffee Trees and no major re-plantings; Stagnant Coffee Production over last 10-15 years; Not taking advantage of specialty coffee market; Production of Robusta Coffee neglected; RGSD moving into new R&D approaches - PRAP; Omuru1 Variety promotion to increase production; R&E capacity D x D, booster program Threat – farmers going for alternate cash opportunities

6. Summary of Findings Thematic Program Area - Marketing Systems Group Cohesiveness Important Factor to Marketing ; Marketing affected by other sector environments; CIC coordinating and linking grower groups with processor/exporters Very competitive & transparent Bulk of coffee traded as smallholder ‘Y’ grade Level playing field (value of value chain)

6. Summary of Findings Thematic Program Area - Productivity Improvements PPAP Framer training in great demand Post harvest research not published & reaching value chain participants Coffee profiling R&E for sustainable production inefficient D x D can be sustained if approach & addressed well

6. Summary of Findings Thematic Program Area - Information and Communication Farmer adoption rate is a contagious issue - still very low; Lack of capacity in Scientific communication ; Weak merger of research and extension - impeding effective flow of information; Scientific Publications has been low over 10 years; Communication, Information and Media integration vital to coffee industry. May need a strategic direction; Network Communication with stakeholders;

6. Summary of Findings Thematic Program Area - Legal and Policy Environments Current legal framework and statutory standing of CIC relevant; Relevant sub-policy for corporate governance required (eg. Employment and training/HR policies; Stakeholders not largely affected by CIC regulatory framework; Current status-quo of CIC Board needs attention; Need to relook CIC’s commercial interest;

6. Summary of Findings Transformation still vital – fill in gaps; Thematic Program Area - Institutional Capacity & Strengthening Transformation still vital – fill in gaps; HR capacity in Program Implementation inadequate; Downsizing CIC. Good or Bad?; Business Management Capacity in CIC and Stakeholders (value chain participants)

7. Way Forward General Complete Transformation vital to implement its corporate plan Change in the way CIC delivers its research & extension business – eg. Enhance multidisciplinary approach to research, cohesive farmer cooperative group participatory research & learning PM&E in thematic program areas objectives Stakeholder Workshop to prioritize projects for each of the 6 thematic areas

7. Way Forward Indicative programs Scaling of Production Optimized scale of production Effective R&DE – Demand Driven; Revitalize Production Base - Rehabilitation, New Plantings and Expansion; Promotion Education; New Growth Areas and Remote Developments; Review of Plantation and Block Holder Sector Marketing Systems Effective Marketing Systems Developed 1. Consolidate Program Formulation Workshop No. 2; Productivity Improvement Enhanced Productive of Farmers and Others Along the Value Chain Post Harvest Quality Improvements; Support Public Private Sector for quality promotion; Cup Profiling per development domain; Cooperative Group Processing and Marketing

7. Way Forward Indicative programs Information and Communication Enhanced Information Management and Communication Effective and Efficient Communication and Information Management Capacity and Infrastructure; Training at Institutional and Farmer Levels; More Effective Outreach; Improve Research Publication and Information. Legal and Policy Environment Enabling Cultural, legal and policy environment Enhance development of domestic certification system; Review Regulatory Functions and Powers; Effective CIC Business Approach for sustainability; Training and Retention of Staff Policy;

WORK IN PROGRESS 7. Way Forward Indicative programs Institutional Capacity and Strengthening Enhanced Institutional Capacity and Governance Targetted HRD and Training Programs; Enhance Provincial Farmer Training Extension Centres; Extension Research WORK IN PROGRESS