Coffee license practices in PNG

FIVE new coffee grower groups have been granted permits by the Coffee Industry Corporation board to build factories. They are the East New Britain Coffee Growers Corporative Association, Enga-based Kompiam Co-operative Society Ltd, Eastern Highlands-based Logia Wago Coffee Management Services, Chimbu-based Neretere Coffee Ltd and Mt Hagen-based Rokel Wet Factory. Goroka-based Hanu Coffee Producers had obtained a license for dry processing aside from a license to build a dry coffee factory.

“License and permits were approved for these coffee companies after a full inspection of their facilities by the CIC coffee inspectors,” CIC chief executive Navi Anis said. He urged coffee companies to comply with the license and permit agreements and move to the higher levels of the coffee business. Meanwhile, a total 121 licenses and permits for various coffee businesses were approved for this year.

They include six manufacturing companies, 17 exporters, 49 dry processors and 37 wet processors while seven permits to build a factory were renewed. A total of 23 licenses were not approved due to non-compliance issues. However, Anis said the companies could re-apply next March once all compliance issues had been resolved. License and permits for the respective coffee companies were issued to them starting last week.

There are guidelines given by the Coffee Industry Corporation to follow to get an export license. Mainly the exporters in Papua New Guinea are companies from overseas. The guidelines have a very high standard. The Papua New Guinea small holder coffee farmers need to raise up to meet this requirement. These requirements are also good because the Papua New Guinea should be competitive in the world market.

What happens in the coffee industry is there are more than 70% smaller holder coffee growers. They supply the market with the produce. However, the plantation or the exporters buy either parchment or green beans and blend well with the plantation grown coffee beans. These are then bagged and sold as plantation coffee. The smaller holders due to lack of resources and fund do not have the capabilities to export. The big exports and plantation manipulate the system very well. The government of definitely need to intervene in terms of assistance in corporative societies. The small holder farmers can mobilize and seize the opportunity.