PAPUA NEW GUINEA COFFEE INDUSTRY CORPORATION

History of Coffee Industry Corporation

Following the formation of the Coffee Marketing Board (later Coffee Industry Board [CIB]) in 1964, centralised institutions in the coffee industry grew in size and in the range of services provided. The Coffee Research Institute (CRI) had its origin in the early 'eighties. The Coffee Development Agency (CDA) was created in 1987 as the official extension agency for coffee in response to the outbreak of Coffee Leaf Rust in the Highlands in the previous year.

In August 1991, the Coffee Industry Corporation (Statutory Powers and Functions) Act was passed by Parliament, paving the way for the amalgamation of CIB, CDA and CRI into the largely self-financing Coffee Industry Corporation Ltd.

In April 2003, the CIC underwent a major restructure to be leaner and cost-effective and responsive to the needs of the coffee industry efficiently. From four divisions, it downsized to two, in which Coffee Research Institute and Extension Services Division were amalgamated to form the Research & Grower Services Division. Likewise, the Industry Affairs and Corporate Services divisions were combined to form the other new division namely the Industry Operations Division.

CIC is a company limited by guarantee. Its members comprise -

6 Grower Associations representing Western Highlands Province; Simbu Province; Eastern Highlands Province; Momase Region; Southern Region (incorporating Papua Region and Southern Highlands Province); and, "other Provinces" including Enga;

a Coffee Exporter Association;

a Plantation/Processor Association;

a Block Development Assocation;

Secretary, Department of Agriculture and Livestock;

Secretary, Department of Trade and Industry; and

Secretary, Department of Treasury and Planning.

The Head Office of the Corporation is in Goroka and it has three Regional Offices, a Research Station at Aiyura, a Research Substation at Panga in the Western Highlands Province, a research farm at Omuru near Madang for Robusta coffee and an Export Office is based in Lae, Morobe Province.

In addition, CIC is represented in each of the ten coffee growing provinces by a Provincial Farmer Training & Extension Co-ordinator.

The two operating divisions of CIC are:

Research & Grower Services Division

The major activities of the division are to (i) Conduct adaptive research on coffee based on farmers needs and aspirations, (ii) Conduct farmer training and use new extension approaches.

Industry Operations Division

Industry Operations undertakes the following functions of the CIC. It oversees finance and administration of CIC, registers operators and regulates their activities, oversees the control of quality, oversees export activities and the collection of levies, conducts inspection and provides information and economic studies.

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