PARTNERSHIPS FOR PRO-POOR GROWTH
New Guinea Fruits Company Economic Constraint Papua New Guinea (PNG) is a major producer of raw materials such as cocoa, coffee, copra and many other agricultural products including honey. Despite such high production levels, PNG’s processing industry is small, reducing potential market and income earning opportunities for farmers and primary producers. One of the major causes for this issue is the weak links between processors and local suppliers of raw materials. This disconnect often means that the suppliers are not aware of market needs and the processors can’t find the right quality and quantity of products on a consistent basis. One product with a high potential to grow in PNG is local honey. Only around 15% of the honey in the market is locally produced, while the rest is imported. There are a number of factors affecting reduced productivity including high input costs and lack of knowledge on beekeeping. Another reason that production levels have been reducing is due to a recent, major increase in mite infestations. The mite is newly introduced to PNG and there is currently no solution to the infestation. The potential benefits of honeybee farming, such as better pollination of other crops, are also not well known among the farmers.
Partnership Solution MDF has partnered with New Guinea Fruits (NGF), a major supplier of honey in the local market. NGF is a locally owned, honey processing business located in the Eastern Highlands province of PNG, where 95% of the country’s beekeepers are located. The business buys honey from local beekeepers, processes it by removing wax and other foreign material and then packages it under its brand name Highlands Honey. Since 2015, the business has only been able to supply a limited amount of the market demand, predominantly because of supply constraints. The current suppliers have been losing productivity due to the mite infestation while new farmers are not investing in honeybee farming because the issues faced by other beekeepers discourage them. In addition, the local industry that supplies inputs and tools for beekeeping is underdeveloped, increasing the costs of starting and maintaining a beekeeping operation. The partnership with MDF creates access to affordable input supplies and tools for local honey producers, builds the capacity of farmers with beekeeping techniques for new and existing beekeepers, and promotes the potential benefits for farmers by investing in beekeeping and honey production as a livelihood. The aim is to increase the supply of quality honey to NGF, create additional income for farmers and make local honey more competitive in the local market. Activities under the intervention include, developing quality marketing materials to promote beekeeping as a reliable income source, hiring a beekeeping expert to train and build the capacity of the beekeepers on modern hive management techniques and expert carpenters will train local manufacturers in making essential tools such as hive boxes from local wood.
Expected Results While the exact estimated results will come after initial assessments, it is expected to reach hundreds of male and female beekeepers and people servicing the industry. By introducing new innovations and the quality and volume of honey increases, farmers incomes will increase, hive management knowledge will improve and input suppliers will benefit from the growth in this sector.