The Cape Rodney Farmers & Settlers Association (CRFSA) in Abau District, Central Province is leading Papua New Guinea’s rubber production push with an ambitious development plan.
The group announced a 10-year plan to cultivate 100 million rubber trees across the country, potentially turning thousands of hectares of arable land into productive rubber plantations.
The plan is outlined in the newly released Cape Rodney Rubber Report 2025, which highlights both the challenges and economic opportunities within the natural rubber industry.
According to the report, rubber is a non-seasonal and non-perishable cash crop that significantly contributes to the PNG economy and reduces poverty by generating income and employment in rural communities.
With roots in post-colonial plantation schemes, rubber remains a promising industry, particularly in Central Province, which includes the rubber-rich Abau, Rigo, Hiri-Koiari, and Kairuku districts.
Abau District is known as the heart of PNG’s Rubber Sector. The report reveals that Cape Rodney, located in Abau, contributed 64% of Papua New Guinea’s total natural rubber output between 2014 and 2018.
With over 2.5 million rubber trees planted across the district, Abau hosts some of the largest plantations such as Manabo and Hanamoa, each spanning 2,000 hectares.
A total of 15 plantations are active in Central Province, with eight located in Abau alone. These estates range in size and productivity, with the Hanau plantation having approximately 700,000 trees, while smaller operations like Mamai, established in 1932, continue to operate on a reduced scale.
Currently, about 25,000 hectares nationwide are under rubber cultivation, involving both commercial and smallholder farmers. The industry generates approximately K70 million annually from the export of TSR (Technically Specified Rubber) CR10 products. Between 2014 and 2018, PNG exported 15,600 tonnes of rubber valued at K63 million, with Cape Rodney emerging as the largest single contributor.
Nine provinces across the country are engaged in rubber production: West Sepik, East Sepik, Manus, New Ireland, Milne Bay, Central, Northern, Gulf, and Western. Despite the geographic spread, Central Province, particularly the Abau District remains the strongest hub.
Cape Rodney Agriculture Development Project (CRADP)
Leading the region’s rubber growth is the Cape Rodney Agriculture Development Project (CRADP), initiated in the 1980s through a partnership between the Government of PNG and the Asian Development Bank (ADB).
Under the Department of Agriculture and Livestock, the CRADP has been recognized as a national agriculture project and remains the only officially endorsed rubber initiative of its kind in the country.
The CRADP encompasses four subdivisions: Ianu, Manabo, Cocolands, and Upulima. Collectively, these cover 10,700 hectares and house more than a million rubber trees. Upulima stands out as the largest and most productive, with 630,000 trees and an annual output of 6.7 thousand tonnes, valued at K9.6 million.
Across all CRADP subdivisions, total annual rubber production amounts to 14,000 tonnes, generating revenue of K16 million.
To meet its ambitious target of 100 million trees, CRFSA has identified several key areas for improvement. These include:
- Infrastructure development: Establishing modern processing plants, storage facilities, and logistics networks.
- Land expansion: Increasing the cultivation footprint beyond current plantations.
- Workforce training: Equipping local farmers with modern rubber farming techniques.
- Technology upgrades: Introducing advanced equipment to improve efficiency and yield.
- Market expansion: Exploring large-scale export opportunities, particularly in China.
- Environmental sustainability: Implementing eco-friendly practices like reforestation and soil conservation.
The association also calls for stronger partnerships with investors, government bodies, and international rubber buyers to finance the expansion and maximize productivity.
Mervyn Hibo, President of CRFSA, said, “We aim to build a multimillion-dollar rubber industry that not only uplifts our local economy but also empowers our people.”
“With over 2.5 million rubber trees already planted and a clear roadmap for the next decade, the future of rubber in Papua New Guinea looks promising,” he added.
CRFSA has extended its appreciation to all stakeholders, including the Department of Agriculture, PNG Rubber Board, Abau District Development Authority, and community members, for their continued support in realising this vision.
Rubber Stakeholders Forum Held
The information compiled from the report was also taken from the Rubber Stakeholders Forum held on 25th March.
The Forum was collaboratively held by the Farmers and Settlers Association with its Cape Rodney Farmers and Settlers Association at Upulima in Abau District purposely to bring the policy makers and implementers to reality and witness the situations affecting the farmers, growers and the people down the value chain from the start to finish of rubber production and supply.
Upulima is stage 3 of the Cape Rodney Rubber Resettlement Scheme and one of the four subdivisions of CRADP funded through the ADB.
One of many significant points raised during the forum was the importance of recognizing challenges and finding workable solutions. Farmers have raised concern over the lack of essential government infrastructure to boost production in the area.
Hibo spoke on behalf of the growers and settlers, noting the lack of infrastructure, land title issues, absence of extension services, lack of proper training, and lack of buyers and credit finance.
Even the lack of feeder roads connecting plantations and villages to the main roads and the mode of rubber purchasing were noted.
The president of the farmers and settlers group, Mr Wilson Thompson, called on Department of Agriculture and Livestock (DAL) and the Rubber Board to fix the Estate roads and bring in aggregators to purchase the rubber.
He said there should be a possible pathway for the NDB to issue agriculture loans under the government SME Loan Scheme.
To commercialise agriculture in PNG, Thompson said the rubber industry should come first, as it is grown in few provinces on State land and initially funded by the National Development Bank (NDB).
“Such forums should be held in the hub of the growers and production locations as it will be a reality check for policy makers, implementers and the government,” Hibo said.
Mixed Fortunes: Export Prices Rise, Production Declines
Drawing on export data from 2001 to 2023, the Director of the Papua New Guinea National Research Institute (PNG NRI), Dr. Osborne Sanida, painted a complex picture of declining production, surging prices, and deep-rooted structural challenges impacting the sector.
Dr Sanida delivered the comprehensive presentation during the Rubber Stakeholders’ Forum in Upulima, including key trends and challenges in the industry.
According to data from the Bank of Papua New Guinea's Quarterly Economic Bulletins, the country’s rubber export performance over the past two decades has seen a general decline in both export quantity and value, even as export prices rose significantly.
Export quantity, which stood at approximately 4.2 thousand tonnes in 2003, dropped to just 2.7 thousand tonnes by 2023. Similarly, the export value peaked at K41 million in 2011 but declined sharply thereafter, closing at K13 million in 2023. Conversely, the price per tonne of rubber has increased from K1,816 in 2001 to K4,907 in 2023.
"The overall decline in export value is directly linked to reduced production volumes, which have negated the positive effects of rising global prices," Dr. Sanida noted.
His presentation, which drew upon the 2024 NRI report also outlined five pressing challenges faced by the rubber industry, particularly those identified by Galley Reach Holdings Ltd (GRHL), a key industry player.
1. Land and Community Disputes: Frequent land ownership disputes, particularly during lease renewals, have created an unstable operational environment. Although plantations operate under long-term State Agriculture Leases, neighboring communities often assert counterclaims. Boundary disputes have, in some cases, escalated to the destruction of rubber trees. Furthermore, the annual use of slash-and-burn techniques by local farmers and even plantation employees has caused substantial damage to plantations.
2. Poor Infrastructure: The lack of access to the National Power Grid forces companies to generate electricity independently, a costly endeavor accounting for 15% of the cost of goods sold. Unreliable telecommunications and deteriorating roads, especially the pothole-ridden Hiritano Highway between Port Moresby and Brown River, have further inflated operational and logistics costs.
3. Security Concerns: Illegal alcohol and drug use, along with ongoing tribal conflicts, have created a climate of insecurity. These social issues have negatively impacted worker productivity and overall crop output. Dr. Sanida highlighted efforts by GRHL to work with the PNG Royal Constabulary to tackle these problems and establish long-term solutions.
4. Struggles of Rubber Smallholders: As GRHL’s older plantations yield less, the company relies on purchasing 900 to 1,000 tonnes of dry rubber annually from smallholders in areas such as Upulima, Moreguina, and Gulf. However, poor road conditions hinder crop evacuation during wet seasons and discourage production. Additionally, the absence of functional extension services from the Department of Agriculture and Livestock (DAL) deprives smallholders of necessary technical support and planting materials.
5. Rising Export Costs: Export-related charges have surged post-pandemic. PNG Port stevedoring fees rose by 20% since 2022, freight costs skyrocketed by up to 300%, and NAQIA inspection fees jumped by 50% over the same period. These additional expenses are eroding profit margins for exporters.
Dr. Sanida stressed the importance of boosting production to leverage the rising export prices.
"To truly benefit from favorable global prices, we must address the structural and operational challenges hampering the industry," he said.
He emphasized that a collaborative approach involving all stakeholders, including government agencies, industry players, and local communities is essential for revitalising the rubber industry.
Dr Sanida assured that the PNG NRI will continue to support the sector through policy research and advocacy, in line with its national mandate.
