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Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea

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Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea Pacific Horticultural and Agricultural Market Access (PHAMA) Program Department of Foreign Affairs and Trade 16-Dec-2016 Doc No. TR098 Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea Technical Report # 098 \\auadl1fp001\jobs\42444251\4 Comms\Reports_WIP\PHAMA TR098 PNG Fresh Produce 161216 v2.docx Revision – 16-Dec-2016 Prepared for – Department of Foreign Affairs and Trade – ABN: 47 065 634 525 AECOM Pacific Horticultural and Agricultural Market Access (PHAMA) Program Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea – Technical Report # 098 Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea Technical Report # 098 Client: Department of Foreign Affairs and Trade ABN: 47 065 634 525 Prepared by AECOM Services Pty Ltd Level 28, 91 King William Street, Adelaide SA 5000, Australia T +61 8 7223 5400 F +61 8 7223 5499 www.aecom.com ABN 46 000 691 690 16-Dec-2016 Job No.: 42444251 AECOM in Australia and New Zealand is certified to ISO9001, ISO14001 AS/NZS4801 and OHSAS18001. © AECOM Services Pty Limited. All rights reserved. No use of the contents, concepts, designs, drawings, specifications, plans etc. included in this report is permitted unless and until they are the subject of a written contract between AECOM Services Pty Limited (AECOM) and the addressee of this report. AECOM accepts no liability of any kind for any unauthorised use of the contents of this report and AECOM reserves the right to seek compensation for any such unauthorised use. Document Delivery AECOM Services Pty Limited (AECOM) provides this document in either printed format, electronic format or both. AECOM considers the printed version to be binding. The electronic format is provided for the client’s convenience and AECOM requests that the client ensures the integrity of this electronic information is maintained. Storage of this electronic information should at a minimum comply with the requirements of the Electronic Transactions Act 2002. No use of the contents, concepts, designs, drawings, specifications, plans etc. included in this report is permitted unless and until they are the subject of a written contract between AECOM Services Pty Limited (AECOM) and the addressee of this report. AECOM accepts no liability of any kind for any unauthorised use of the contents of this report and AECOM reserves the right to seek compensation for any such unauthorised use. Document Delivery AECOM Services Pty Limited (AECOM) provides this document in either printed format, electronic format or both. AECOM considers the printed version to be binding. The electronic format is provided for the client’s convenience and AECOM requests that the client ensures the integrity of this electronic information is maintained. Storage of this electronic information should at a minimum comply with the requirements of the Electronic Transactions Act 2002. \\auadl1fp001\jobs\42444251\4 Comms\Reports_WIP\PHAMA TR098 PNG Fresh Produce 161216 v2.docx Revision – 16-Dec-2016 Prepared for – Department of Foreign Affairs and Trade – ABN: 47 065 634 525 AECOM Pacific Horticultural and Agricultural Market Access (PHAMA) Program Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea – Technical Report # 098 Quality Information Technical and Economic Feasibility of Selected Fresh Produce Export Document Pathways in Papua New Guinea Ref 42444251 Date 16-Dec-2016 Prepared by Rob Duthie and David Young Reviewed by Dale Hamilton Revision History Authorised Rev Revision Date Details Name/Position Signature Trevor Ole / Project 18-Nov-2016 Editing and formatting Director 16-Dec-2016 Final review Sarah Rippin / Communications Adviser \\auadl1fp001\jobs\42444251\4 Comms\Reports_WIP\PHAMA TR098 PNG Fresh Produce 161216 v2.docx Revision – 16-Dec-2016 Prepared for – Department of Foreign Affairs and Trade – ABN: 47 065 634 525 AECOM Pacific Horticultural and Agricultural Market Access (PHAMA) Program Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea – Technical Report # 098 Table of Contents Acronyms i Executive Summary iii 1.0 Introduction 1 1.1 Background 1 1.2 Rationale 1 1.3 PHAMA’s Strategic Framework 2 1.4 PHAMA in PNG 3 1.5 Study Methodology 4 2.0 Agricultural Production and Marketing in PNG 5 2.1 Agricultural Sector Overview 5 2.2 Sector Development Strategy 5 2.3 National Trade Policy 6 2.4 Fresh Produce Marketing 7 2.5 Institutional and Regulatory Framework 12 2.6 Regional Trade Agreements 13 2.7 Export Opportunities 14 2.8 Export Constraints 18 2.9 Complementary Activities 21 2.10 Biosecurity Issues 21 3.0 Export Market Opportunities for Fresh Produce 22 3.1 Products Technically Feasible to Export 22 3.2 Potential to Expand Market Access 23 4.0 Potential for Exports 24 4.1 Overview 24 4.2 PNG Market Prices 24 4.3 Australian Market Prices 25 4.4 Transport Linkages 27 4.5 Value Chain Analysis 27 4.6 Other Considerations 28 4.7 Priorities for Export Pathway Development 28 5.0 Conclusions and recommendations 28 5.1 Conclusions 28 5.2 Recommendations 29 6.0 Standard Limitation 30 Appendix A List of Commodities Considered A Appendix B Review of Previous Studies on Fresh Produce Marketing in PNG B Appendix C Training Materials C Appendix D PNG Fresh Produce Access to Australia, MSG Countries and New Zealand D Appendix E Domestic Market Data for Fresh Produce E Appendix F PNG Trade Statistics F Appendix G Analysis of Brisbane Wholesale Market Data G Appendix H Value Chain Analysis H \\auadl1fp001\jobs\42444251\4 Comms\Reports_WIP\PHAMA TR098 PNG Fresh Produce 161216 v2.docx Revision – 16-Dec-2016 Prepared for – Department of Foreign Affairs and Trade – ABN: 47 065 634 525 AECOM Pacific Horticultural and Agricultural Market Access (PHAMA) Program Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea – Technical Report # 098 Appendix I Summary of Supply, Demand and Market Access Issues I Appendix J Major Findings by Commodity J Appendix K Interim Report Workshop K Appendix L List of Persons Contacted L Appendix M References M-1 \\auadl1fp001\jobs\42444251\4 Comms\Reports_WIP\PHAMA TR098 PNG Fresh Produce 161216 v2.docx Revision – 16-Dec-2016 Prepared for – Department of Foreign Affairs and Trade – ABN: 47 065 634 525 AECOM Pacific Horticultural and Agricultural Market Access (PHAMA) Program i Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea – Technical Report # 098 Acronyms Abbreviation Description ACIAR Australian Centre for International Agricultural Research ADB Asian Development Bank AUD Australian Dollar BICON Biosecurity Import Conditions System BQA Bilateral Quarantine Agreement DAL Department of Agriculture and Livestock DAWR Department of Agriculture and Water Resources (Australia) DFAT Department of Foreign Affairs and Trade (Australia) DOH Department of Health EPA Economic Partnership Agreement FER Functional and Expenditure Review FPDA Fresh Produce Development Agency HACCP Hazard Analysis Critical Control Point HTFA High Temperature Forced Air IEPA Interim Economic Partnership Agreement (with the EU) IFAD International Fund for Agricultural Development IFC International Finance Corporation IPA Investment Promotion Authority IPPC International Plant Protection Convention LLG Local level Government MAWG Market Access Working Group MB methyl bromide MCPNG Manufacturers Council of PNG MDP Market Development Project MFAT Ministry of Foreign Affairs and Trade (New Zealand) MPI Ministry of Primary Industries (New Zealand) MSG Melanesian Spearhead Group MSGTA2 Melanesian Spearhead Group Trade Agreement 2 NADP National Agriculture Development Plan NAQIA Ministry of Primary Industries (New Zealand) NARI National Agricultural Research Institute NCS National Catering Services NPPO National Plant Protection Organisation NSSL Niugini Strategic Services Ltd OIE World Organisation for Animal Health \\auadl1fp001\jobs\42444251\4 Comms\Reports_WIP\PHAMA TR098 PNG Fresh Produce 161216 v2.docx Revision – 16-Dec-2016 Prepared for – Department of Foreign Affairs and Trade – ABN: 47 065 634 525 AECOM Pacific Horticultural and Agricultural Market Access (PHAMA) Program ii Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea – Technical Report # 098 Abbreviation Description PACER Pacific Agreement on Closer Economic Relations PARDI Pacific Agribusiness Research for Development Initiative PGK Papua New Guinea Kina PHAMA Pacific Horticultural and Agricultural Market Access PICs Pacific Island Countries PICTA Pacific Island Countries Trade Agreement POM Port Moresby PMV Public Motor Vehicle PNGWIA PNG Women in Agriculture PNGWIB PNG Women in Business PPAP Productive Partnerships in Agriculture Project R&D Research and Development SME Small and Medium-sized Enterprise SMS Short Message Service SPC Secretariat of the Pacific Community SPS Sanitary and Phytosanitary EXCHANGE RATES: (February 2016) PNG Kina (PGK) 1.00 = Australian Dollars (AUD) 0.47 AUD 1.00 = PGK 2.12 \\auadl1fp001\jobs\42444251\4 Comms\Reports_WIP\PHAMA TR098 PNG Fresh Produce 161216 v2.docx Revision – 16-Dec-2016 Prepared for – Department of Foreign Affairs and Trade – ABN: 47 065 634 525 AECOM Pacific Horticultural and Agricultural Market Access (PHAMA) Program iii Technical and Economic Feasibility of Selected Fresh Produce Export Pathways in Papua New Guinea – Technical Report # 098 Executive
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