By Brown Bai
Chairman of the Rural Industries Council

The Rural Industries Council wishes to express its gratitude to the organizers of this year’s forum for the invitation extended to us to outline the Council’s vision for Rural Industries Development in PNG within the theme of this year’s forum "Building Business Opportunities and Growth".

The Rural Industries Council is the executive body of the Rural Industries Inc. which was registered under the Incorporation Act in 1988.

The Council’s objectives are principally aimed at developing and inspiring the growth of the rural areas, through the various sectors of agriculture, livestock, poultry, piggery, horticulture and commercial forestry. The Council pursuit for rural development is greatly enhanced by the memberships of all the agricultural commodities boards, Institute of National Affairs, the Agricultural Research Institute, University of Vudal, Ag Mark Chemicals and [hose key Government Institutions like the Department’s of Agriculture & Livestock, National Planning & Rural Development, Prime Minister & NEC, and National Agriculture Quarantine Inspections Authority.

The Membership of the Council includes:

• Palm Oil Producers Association
• W.R. Carpenters (PNG) P/L - Tea
• National Agriculture Research Institute
• Poultry Association
• The Cattleman’s Association
• PNG Grower’s Association - Cocoa & Coconut
• Coffee Plantations & Processors Association Inc.
• Ramu Sugar Limited
• Coffee Industries Corporation P/L
• Small Coffee Processors Association
• Galley Reach Holdings Ltd - Rubber
• North Fly Rubber Ltd
• Forest Industries Association
• Institute of National Affairs
• Fresh Produce Development Ltd
• PNG Spice Industries Board
• Prime Minister’ Department
• Kokonas Indastri Koporesen
• PNG Cocoa & Coconut Research Institute
• National Agriculture Quarantine Inspection Authority
• Department of Agriculture & Livestock
• Oil Palm Industries Corporation
• Livestock Development Corporation
• Cocoa Board of PNG
• Alam Investments
• Alele Produce Ltd

The objectives of the Council are:

1. To promote the agricultural Industrial in Papua New Guinea;
2. To promote and protect the common interest and general welfare of the members;
3. To consider all questions submitted by any Members or any Association
4. To unite together in one body the members for the purpose of obtaining reasonable and just legislation affecting rural industries
5. To make representation from time to time to the proper Authorities with regard to the laws and regulations or any proposed laws or regulations directly or indirectly affecting rural industries.
6. To make representations to the Parliament of Papua New Guinea or to any other Authority or official body) with regard to all matters deemed b) the Association to affect the interest of the members and to call public attention from time to time to all matters which may be deemed to be important in the public interest
7. In furtherance of the objects of the Association to co-operate with join or affiliate with any body having aims and objectives similar in whole or in part to the aims and object of this Association and for this purpose to enter into any agreement or arrangement so as to effect such co-operate membership or affiliation.
8. To appoint and elect an person or persons to represent the Association on any Committee or Board upon such terms and conditions as the Association may from time to time deem advisable.
9. To disseminate information of interest in regard to rural industry among members.
10. To collect and circulate statistic and other information relating to rural industries,
11. To make recommendations or suggestions on any matter considered of importance to members.
12. To accept undertake and execute any trust or deed which may be deemed to he in accordance with or which may further the objects of the Association or any of them.
13. To appoint Trustees to hold any part or parts of the property of the Association.
14. To indemnify any member of the Executive or paid Officer of the Association in respect of any action whether at law or otherwise taken or to be taken by or against such member or paid officer in connection with or relating to the discharge of any official duties of such member on paid officer in respect of any liability incurred or to be incurred by such member or paid officer in connection with or relating to the discharge of any official duties of such member or paid officer other than the payment in whole or in part of a fine or penalty imposed by a Court.
15. To invest any moneys of the Association as the Executive may from time to time deem fit.
16. To do such other things as arc or may be incidental or conductive to the attainment of the above or any of them.

It is the Council firm position that PNG must do everything possible to open up the huge land hank to put them into agriculture development. The council and all its members are totally committed and dedicated to continue to develop and expand their projects.

The Council acknowledges the commitment by the Government, through its Medium Term Development Strategy, to promote rural development and agriculture in particular.

The national challenge to actively develop and promote the development of the rural areas is not an option to other development policies. We all know generally that PNG is richly blessed with huge potential for development. We also know that about 87% of PNG’s total population lives in the rural areas and depend on it for their overall welfare. We know that of the total land mass of PNG, 97% is owned by traditional landowners. Moreover, we know that development indicators for PNG are influenced by the standard of living of our rural population.

Our overall effort in pursuing agriculture development must clearly aim to achieve the following overall objectives:

(a) Income generation;
(b) Export generation
(c) Employment creation;
(d) Poverty alleviation;
(e) Fair and even distribution of development, which also inspires even income distribution areas of the country.

The Government has given its total commitments to promote agriculture development through the MTDS and through the Treasures 2005 Budget Statement.

Our service delivery mechanism is still not functioning well. Farmers through out the country, in general, are still waiting to see when support services are going to be delivered to them. It is important that these delivery mechanisms and producers are urgently addressed and rectified so that these services can be delivered quickly. Moreover it is necessary to build on investment environment to give confidence to current investors to continue to expand and also improve their production and to also attract new large scales investments into agriculture.

PNG must not he complacent with the current contributions of agriculture to its overall Gross Export Receipts and its national Gross Domestic Product (GDP). PNG has been luck to extract the benefits of increased world market prices for export products. However, everyone knows that high periods of gains are always followed by low periods generated by depressed world market prices and unfavorable planting conditions.

The following table illustrates agriculture sectors revenue contributions to PNG’s overall receipts from 1999 - 2004.

Table (1) Exports Classified By Commodity Group K’ million fob

Source: BPNG Quarterly Economic Bulletin - December 2004 Issue

Table (2) Agriculture Exports Classified by Commodity K’ million fobs

Table (3) Agriculture Exports –Quantities (1000 tonnes)

By not expanding current production, PNG is actually missing out on reaping the income benefits provided by increased world market prices for commodities.

PNG’s agriculture development policies and strategy must aim at:

• Increasing the volume of current export crops;
• Improve the quality of current export crops so as;
• To maintain international markets competitive edge;
• Actively promote crop diversification sot that new export crops can be introduced;
• Expanding domestic food production, both for domestic consumption and exports

There are obviously a number of serious obstacles that are frustrating all development initiatives in the rural areas that require urgent attention. These include:

• The deteriorating infrastructure system, i.e. roads, bridges, telephone service, and airports;
• Constant land disputes, land compensation claims, long time lead time in securing land titles for development;
• Law & Order problems;
• Lack of concessionary funds available to farmers;
• Inadequate extension services and lack of information to farmers on the new innovative technologies and markets;
• High freight charges.

These are problems that seriously impact all business through PNG. The telephone service, for example, has become so had that rural based industries are experiencing greater difficulties now than ever before.

PNG’s overall attitude to agriculture development must be premised on proper commercial concepts. Generally, people take this sector for granted and only attend to it when they feel that there are no other opportunities for formal employment. This type of attitude must change. This sector has already proven to provide propel’ long term sustainable development which maintains the community the present and future generation.

A commercial attitude will inspire PNG to uplift the development of this sector and its direct contributions to the broader community and the country.

The Rural Industries Council will continue to pursue its objectives, in association with Government and other key Institutions, to play a Part in presenting agriculture development as a key player in PNG’s overall development pursuit.