Sustainable agricultural growth in Papua New Guinea hinges on investing in people rather than just crops, Dr. Eric Omuru, Managing Director and Principal Consultant of E.E. Omuru Limited, said during his plenary keynote at the Central Province Investment Conference (CPIC) 2024.
The CPIC was co-hosted by the Central Chamber of Commerce and Industry Inc. (CCCI) and the Central Provincial Government with the theme “Investing in Central Province” on 27th to 28th February at the Stanley Hotel in Port Moresby.
Omuru, who played a key role in developing PNG’s National Agriculture Sector Plan, opened his address by acknowledging the challenge of condensing such a critical discussion into a ten-minute speech.
His session presentation was titled “Transforming Agriculture and Commodities: Charting a Path Towards Enhanced Food Security, Mechanization, and Climate Resilience for Cash Crops and Value Chain Success.”
Despite last-minute program changes, Omuru highlighted fundamental issues affecting PNG’s agricultural sector.
Underperforming Despite Abundant Resources
Agriculture remains a cornerstone of PNG’s economy, yet its export revenue stands at a modest K4.5 billion, far below its potential, Omuru said. He argued that the sector’s underperformance is largely due to a long-standing focus on crops rather than the people cultivating them.
He said, “We need to shift from a commodity-focused approach to one that prioritizes the people who grow these crops. If we invest in people, we will see progress in agriculture.”
The statistics he presented painted a stark picture of Central Province’s struggles:
- Coconut (copra) – No exports recorded since industry deregulation in 2002.
- Cocoa – No exports in the past decade, though recent government partnerships offer hope.
- Coffee – Contributes a mere 0.1% of national exports.
- Oil palm – Minimal presence in the province.
- Rubber – The only crop with a respectable share, benefiting from 74% of government subsidies in 2021.
Despite its limited market appeal, rubber is emerging as a viable opportunity. Omuru shared his personal experience of entering the trade, acknowledging the financial losses but also gaining firsthand insight into the hardships faced by rural farmers.
Food Security and the Growing Reliance on Imports
Omuru also raised concerns about PNG’s increasing dependence on imported staple foods. While the country’s annual rice consumption is estimated at 500,000 to 600,000 tons, local production remains minimal, with only about 13,000 smallholder farmers cultivating rice.
“We eat around 60 kilograms of rice per person each year, but we hardly grow enough to sustain ourselves,” he said.
The livestock sector faces similar challenges. Omuru said PNG consumes 16,000 tons of meat annually but produces only 2,000 tons, with the shortfall met by imports. He pointed out that Central Province has vast land resources suitable for livestock farming, yet efforts remain minimal.
Climate change is exacerbating agricultural challenges, as Omuru noting rising temperatures, erratic weather patterns, and increased pest infestations—including the coconut rhinoceros beetle and coffee berry borer—are threatening production.
“Agriculture in PNG remains largely traditional, with minimal mechanization. We need to modernize and prepare for these challenges to ensure long-term sustainability,” he noted.
Value Addition and Smart Investments
One of Omuru’s key recommendations was increasing downstream processing and value addition. Using rubber as an example, he highlighted the significant price difference between raw cup lump rubber (purchased at K1.50 per kg) and processed ribbed smoked sheets (RSS), which can fetch K6 per kg.
“If we focus on value addition, we lighten the crop’s weight and generate more income. This kind of smart thinking is necessary if we want agriculture to be a viable business,” he said.
He also urged the provincial government to improve infrastructure, particularly in rural areas, to help farmers transport their produce to market more efficiently.
Omuru emphasized that empowering farmers with training, access to finance, and better market opportunities would drive meaningful progress.
“The livelihoods of our people must be at the center of agricultural policies and investments. Only then will we see real, sustainable change,” he said, reminding all attendees that agriculture is not just about producing food, it’s about supporting the people who cultivate it.
CPIC Conference
The conference goes in line with the nation’s 50th Anniversary, reflecting on the province’s achievements and future aspirations. Featured keynotes and panel discussions to review Central Province history, and current initiatives and outline feature goals were key highlights to the two day conference.
The CPIC 2025 program included two days of dynamic activities:
- Day 1 featured strategic speeches and interactive sessions on agriculture, tourism, fisheries, innovation, and creative industries to support economic diversification.
- Day 2 focused on utilities, revenue generation, infrastructure land reforms and social development, including youth and women’s empowerment. The event concluded with the official launch of the CCCI and a gala celebration
The CCCI also hosted a business matching event on February 27 for investors and registered participants to exchange insights and foster partnership, providing further networking opportunities on February 28.
Hon. Rufina Peter, the Governor of Central Province, thanked all sponsors and stakeholders for their support. “Together we can unite stakeholders for this pivotal moment,” she added.
Linda Paru, President and Interim CEO of CCCI, reaffirmed the Chamber’s commitment to initiatives that stimulate economic growth and innovation, noting the event was a valuable platform for meaningful partnerships.
