Category Archives: Fisheries

Deal made for fishing businesses to recieve loans

By MARK HAIHUIE 


THE National Fisheries Authority has paid K1 million to the Peoples Microbank Limited as part of an arrangement to provide a loan facility to fishing businesses.

 
Bank’s head of credit Danny Koka said it was an installment of the K5 million agreed to in 2014.

 
Koka said the agreement with NFA since 2014 was the commitment of K5 million which would be used as a revolving fund for fisheries business loans.

 
“So far they have given usK3 million and from that we have already lent out K4.2 million to customers,” he said.

 
“The maximum we disperse is K25,000 for fisheries-based business such as to those who want to buy dinghies for their businesses or equipment for fishing and across a range of needs.

 
“This next installment will go a long way in supporting the success we have had with the loans from this arrangement.”

 
NFA provincial support and industry development executive manager Welete Wararu said similar arrangements were in place with other organisations.

 
She said it was important to have timely reporting on funds used to enable funding from NFA.

 
“We are not in the banking business but rather come in with funding to create an enabling environment for fisheries businesses to get funding with ease,” she said.

 
“It is important for us at NFA to have reports on the funds so that funds committed through our agreements either for PML or others to be given early so that we can maintain the support for those in the fisheries sector by getting the funding.”

Pato pushing for end to illegal fishing

Moves to eliminate illegal fishing near Papua New Guinea and in the wider Pacific are high on the agenda for PNG at the World Trade Organisation (WTO) meeting in Argentina this week.
During a session on illegal fishing, Foreign Affairs and Trade Minister Rimbink Pato delivered a keynote contribution in support of trade rules requiring the abolition of subsidies given by certain major economies to their fishing industries.
Pato along with Commerce and Industry Minister Wera Mori are representing PNG at the ministerial meeting in Buenos Aires.
Referring to illegal, unregulated and unreported fishing, Pato said: “We know from experience that fishing subsidies by big economies are detrimental to smaller-scale fishing industries in PNG and other Pacific countries.
“These subsidies also contribute to over-fishing that threatens the very existence of the fish stocks which are vital to feed the world and to our economy.”
Pato told a meeting attended by representatives of most countries in the world that PNG, as the biggest Pacific Islands nation, strongly supported moves by the Pacific Islands Forum states aimed at eliminating illegal fishing from the Pacific and other oceans.
“Further discussions are being held at the WTO meeting on key proposals associated with the elimination of subsidies,” Pato said. “Mori and I are also working to ensure that rules relating to agriculture and the digital economy are suitable to WTO moves to establish a free and fair trading world.”

Source: The National

PNG’s Self-Sufficiency Drive Offers Openings For Agri-Industry

 
 
 
October 31, 2017
Via: Post-Courier
 
 
After being returned to office following the National Elections in Papua New Guinea earlier this year, the government of Prime Minister Peter O’Neill has stepped up its drive to improve food sustainability and reduce foreign exchange outflows.
 
The administration’s focus on import replacement and food self-sufficiency should create opportunities for the food processing industry, in particular, encouraging investment in downstream capacity.
 
The government plans to place investment funds, to be dispersed through the Supplementary Budget, with the state-owned agriculture investment company, Kumul Agriculture, which can then partner with local and international investors.
Richard Maru, Minister for National Planning and Monitoring, told local media in September that the entity is soon expected to start receiving funds to invest in the sector.
 
According to local media, the plan to establish a state-owned investment vehicle for agriculture was first mentioned in 2015.
 
Government to mobilise investment funds, target agriculture. In particular, the government is looking to curb the island nation’s sizeable food import bill – reported to be as high as PGK4bn ($1.3bn) per year – by expanding the agriculture sector.
While PNG is self-sufficient in many fresh or semi-processed foodstuffs – rice being the key exception – it has to import much of its processed food, both for human consumption and livestock feed.
Speaking to local media at the end of August, Charles Abel, DeputyPrime Minister and Treasurer, said that the rice import bill was the second-highest consumer of foreign exchange in PNG, after the fuel import bill.
Loi Bakani, governor of the Bank of PNG, also highlighted import costs as being a top concern.
“In particular, I am concerned about food imports, because it constitutes the highest demand for foreign exchange and it is not matched by any foreign exchange revenue from food exports,” he told an investment conference in Sydney, Australia, in mid-September.
 
Courting downstream agriculture investment to generate export potential
In addition to boosting primary production, PNG is seeking investors in downstream value-added processing, which could create export potential.
Palm oil and coffee, among others, have been cited as examples, with processed goods both easier to freight than fresh, and able to generate far higher returns.
“We have water and very fertile land,” Mr Maru told local media in mid-September.
“What we have to do now is to mobilise the land, and then find investors who have the technology and the capital to partner (with) us to start investment in commercial agriculture in a very significant way.”
 
Recent investment in value-added growth areas. The agro-processing industry is already seeing an increase in investments that should help reduce the food import bill and improve sustainability.
Agri-business firm, Innovative Agro Industries, is currently developing a K130m ($40.6m) dairy farm and processing facility outside Port Moresby, with production set to begin in November. When fully operational next year, the 5m-litre annual output from the plant is expected to cut up to K400m ($124.7m), or 10%, from PNG’s import bill.
An even larger investment is taking shape in West Sepik Province, around 30km from the Indonesian border. Chinese investors signed a memorandum of understanding last December with the PNG Government to develop a $3.8bn industrial park. Along with an industrial hub for processing steel and cement, the project – described as a long-term venture – features a processing cluster focused on fish, cassava, tropical spices and timber.
Fish is an area where PNG has significant potential for value-added processing. The country’s 2.5m-sq-km exclusive economic zone is home to roughly 18% of the global tuna supply, according to a 2013 report by Pacific Tuna Forum, and an estimated 750,000 tons of the fish is caught each year in PNG waters.
While this represents a raw value of around $1.5bn, most of the value creation occurs during processing, which takes place offshore. Countries such as the Philippines and China generated an estimated K30bn ($9.4bn) in added value by processing raw tuna exports from PNG, the Manufacturers Council of PNG reported.
 
Agro-processing agenda part of broader bid to industrialise
Promoting value-added agriculture forms part of a broader national effort to increase industrial capacity in PNG.
Speaking at a recent conference on financial inclusion and innovation, Wera Mori, the Minister of Commerce and Industry, said the government aimed to restructure the economy so that 70% of gross domestic product (GDP) was generated by sectors such as manufacturing, agriculture, fisheries and forestry, with the latter three all having strong downstream potential.
To help achieve this goal, Mr Mori said the government would move to improve access to credit, introduce regulatory and supervisory reforms, and further promote micro-, small and medium-sized enterprises.

Government supports Manus fish cannery

Source: Loop PNG

Author: Freddy Mou

The Government will support the proposed tuna cannery processing plant that will be built in Lorengau, Manus Province.

Minister for Fisheries, Patrick Basa, said the Government welcomed the idea which was raised in Parliament by Planning Minister, Richard Maru.

 

 

The question was raised by Manus Governor, Charlie Benjamin, during the last session of Parliament on what plan the Government have to sustain the economy of Manus after the closure of the Asylum processing center.

 

Maru in a response said the Government has plans and one of them is to establish a fish cannery that will employ more than a thousand people and bring revenue to the province.

 

 

Minister for Fisheries, Patrick Basa, when presenting a dividend of K60 million to the Government as dividend payment, said the Government is always having an open dialogue with coastal provinces in helping them with projects.

 

 

He added that the establishment of the fish cannery in Manus will boost the province and the country in terms of revenue generation.

 

 

However, Minister Maru, in the last session of parliament also called on the provincial Government to have plans to help their people rather than depending on the Government.

 

The Asylum processing center will be close effective as of October 31st 2017.