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Using value chain systems modelling to develop more sustainable vegetable marketing systems in a Developing Countries: a case study in PNG

Colin Birch

On behalf of

L. Bonney, G. Palaniappan, B. Chambers, L. Sparrow, M. Boersma, R. Doyle and C. Birch

26th September 2011World Congress on Conservation Agriculture, Brisbane

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The Project context

Paper arises from project

Increasing vegetable production in Central Province, Papua New Guinea

to supply Port Moresby Markets(in partnership with)

National Agricultural Research InstituteFresh Produce Development Agency

Central Province AdministrationPacific Adventist University

Greenfresh Limited

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Location of the ProjectLimited to Central Province of PNG, has coastal

lowlands and mid altitude areas eg Tapini

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The Papua New Guinea Context

Developing Country, economy in transitionAgriculture approx 20% of GDP, 17 % of exportsSubsistence agriculture still predominantFamily needs met from own production, no need for regular sales

Supply chains operate with spot forms of governance

Few incentives to improve supply or quality

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The Papua New Guinea Context

Smallholders disempowered and in povertyShortfall of vegetable supply to Port Moresby

– possibly 80 000 tMineral and Gas resources boom exacerbating

supply shortfallCentral province has suitable land resources to

increase production near Port Moresby

Need sustainable models of production compatible with complex socio-cultural norms and infrastructure constraints

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Research Rationale

Marketing supply chains operate as systemsInternational R&D agencies use value chain

analysis to address ‘wicked problems’Value chain management means collaboration for

efficiency and adding value for participantsNeed to find ways to engage smallholders,

women and youth in production and marketing

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Research Methodology

Methodology An initial scoping study using Rapid Value Chain AnalysisMultidisciplinary teamSeek to understand priority constraints in production and

marketing, identify focal vegetables and participating communities

Gather data on material and communication flows, relationships

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Data Analysis

Data Analysis Thematic and content analysis to identify

potential ‘chain improvements’Iterative process – validated with chain

participantsIdentify positives in the host (PNG) culture

and build on them

Next stepNew collaborative model in first iteration of

trials.

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Results and Discussion -Highly variable supply and quality

Current supplies inadequate and inconsistent Due to socio-cultural and infrastructure

constraints

Quality variable Due to production system and post-harvest

constraints

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Results and Discussion - Poor Marketing Infrastructure

Road, telecommunications and finance systems inadequate

Telecommunications patchy,Internet in major centres only

No national interconnected roadsRoads poor and poorly maintained

Banking system confined to major centres

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Lack of Economies of Scale and Poor Coordination in Marketing

Small lots – 50kg or so carried by people on PMVs (scale issue)

‘Hawk’ produce for a price (scale issue)Prices highly variable – quantity, quality,

post harvest deterioration (coordination issue)

High costs, time loss, harassment, intimidation (coordination issue)

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Poor Chain Relationships

Most relationships transactional, short term

Opportunistic and exploitive behaviour - chain relationships compromised

Women report harassment and exploitation

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A preferred Model

More sustainable production and coordinated marketing

Delivering more and better quality produce

Implement using contractswith wholesaler or end user Involve ATV and cool box, then larger

refrigerated vehicle to Port Moresby, back-loading of inputs

Use trading account Some cooperatives establish ‘trading stores’ - ?

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Conclusions

There is potential to improve vegetable supply and quality

There are challenges at all stages of the chain

But we perceive an entrepreneurial spirit and willingness to ‘give it a go’

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Acknowledgements

The financial support of ACIAR is acknowledged.