PNG cocoa, coffee slump

for different reasons

From GUS SMALES in Port Moresby

Cocoa production in Papua New Guinea is dropping sharply, and a planters’ organisation blames in securities over land tenure for the situation.

There were strong warnings in September from sections of the in dustry that a regression to peasant farming and low-level returns was looming unless present trends were reversed.

The executive officer of the Plan ters Association of New Guinea, Mr Cyril Holland, was questioning re cent production figures released in ternationally by the International Cocoa Conference. The figures sug gested that production in PNG was rising, and the ICC described this as “as a sign of great enthusiasm”.

But Mr Holland, speaking from Rabaul, centre of the PNG cocoa in dustry, said he placed greater con fidence in figures produced by PNG’s own Cocoa Industry Board.

The local figures indicated without doubt that the past 12 months had seen a 25 per cent drop in produc tion.

The real loss to the country was even higher than the figures sug gested, Mr Holland said, because of the current high prices on the world cocoa market.

The cocoa industry’s concern came hard on the heels of the dis closure that coffee production was also dropping sharply in the high lands of PNG, But the problems of the two in dustries and the reasons for the pro duction dive differ widely; • Coffee growing is largely in the hands of Papua New Guinean small holders who have been lulled into a sense of economic security by recent high prices and are now neglecting their crops. • Cocoa is still heavily linked with long-established estates, with big sophisticated operations and exter nal investment, and insecurities over land tenure have depressed continuing operations.

Mr Holland said that he was not criticising the concept of legislation designed to acquire properties for

redistribution to Papua New Gui neans.

However certain aspects of the present legislation clearly required close examination because the legis lation itself was depressing the in dustry. Only a super-optimist would maintain his property at high level to have it sold over his head, Mr Holland said.

Compensation is paid, but the Government sets the amount and the avenues of appeal are limited.

Mr Holland said that unless a review of the situation is carried out quickly “the cocoa industry is head ing towards the gate marked exit”.