In a significant move to enhance the logistics of the coffee sector, the Coffee Freight Surety Scheme (FSS) has been launched, aimed at improving the connection between local farmers and broader markets. This article highlights the initiatives taken by the Coffee Minister to promote coffee logistics and its implications for farmers.
New Initiative Launch
On July 19, 2025, William Bando, the Coffee Minister of Papua New Guinea, proudly introduced the Coffee Freight Surety Scheme (FSS), a forward-thinking initiative backed by a considerable funding injection of K4 million from the National Government. This pivotal program aims to strengthen the relationship between coffee growers in remote areas and national and international markets.
Gathering of Key Stakeholders
The launch event held at the Niugini Aviation Services Ltd Hangar in Mt Hagen was a gathering place for various stakeholders, including representatives from shipping agencies, farmers, and officials from the Coffee Industry Corporation (CIC) and Coffee Ministry. The attendance of these parties underscores the collective commitment to boosting the logistics framework supporting the coffee industry.
Government Support and Funding Allocation
Minister Bando emphasized the importance of this initiative by acknowledging the year-long hiatus in funding for the FSS program by the government. The Minister stated, “This program is not merely a policy; it is a promise not to leave any farmer behind. We are focused on bridging isolated coffee farming communities with national and global market access.”
The K4 million funding will cover various logistical expenses, including:
- Payments for third-level airlines facilitating dedicated coffee flights
- Shipping operators to handle coastal and island transportation
- Fuel subsidies
- Operational and maintenance support for freighters
Distribution of Funds
The Coffee Minister announced that K2.4 million of the funds would be allocated to airfreight and shipping agencies. The breakdown of these funds is as follows:
Airfreight/Shipping Agency | Amount (K) |
---|---|
Adventist Aviation Services | 200,000 |
MAF | 200,000 |
Kobio Aviation Ltd | 200,000 |
Niugini Aviation Services Ltd | 200,000 |
SIL | 200,000 |
Air Sanga | 200,000 |
Aerodynamic or Heli Solutions | 200,000 |
Lutheran Shipping Agency | 200,000 |
JJ Shipping | 200,000 |
Consort Shipping | 200,000 |
Manolos Aviation Ltd | 200,000 |
Pomio Development Agency | 200,000 |
Focus on Collaboration
Minister Bando stressed the necessity for ongoing discussions and agreements among District Development Authorities, CIC, and airfreight and shipping agencies. He urged leaders in coffee-producing regions to engage with CIC and freight agencies to create strong partnerships. “MPs should collaborate with us to reach out to your constituents. Through this initiative, we are ensuring that more money reaches our rural farmers,” Bando urged, underlining the importance of addressing spoilage and logistics challenges.
Impact on Farmers and Business Growth
The initiative stands to empower farmers and promote growth in Small and Medium Enterprises (SMEs) within Papua New Guinea’s coffee sector. By streamlining logistics, there’s potential for increased volumes of coffee to be exported, enhancing the region’s standing in the global coffee market.
Chief Executive Officer of CIC, Charles Dambui, shared that the previous year’s investment of K1 million into the FSS program yielded a remarkable K7 million in returns. “This demonstrates the effectiveness of our efforts to uplift marginalized rural communities,” he stated.
Encouragement from Top Officials
CIC Chief Operations Officer, Steven Tumae, echoed the sentiment of unity among partners, emphasizing the need for collective resources to benefit inaccessible farmers. “Our farmers deserve all the support we can give them. I appreciate the government’s contribution that will assist our disadvantaged farmers significantly,” Tumae remarked.
Widespread Support for Infrastructure
The FSS program has been crucial in providing support to an impressive infrastructure network encompassing:
- 50 airstrips
- 10 jetties
- 7 wharves
This network spans across 13 provinces, improving logistics and transport possibilities across 24 districts, enhancing not only the coffee supply chain but also overall nationwide connectivity for agricultural products.
Rezumând totul
The introduction of the Coffee Freight Surety Scheme marks a significant step towards revitalizing the logistics framework for Papua New Guinea’s coffee industry. With clear incentives and support systems in place, it positions local farmers favorably within national and international markets.
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