This document discusses improving agricultural value chains in Papua New Guinea (PNG), focusing on the poultry value chain. It notes that poultry is an important source of income and protein but is expensive in PNG due to inefficiencies. Opportunities discussed include developing poultry clusters with government support and further investigating a mini-feed mill model using local ingredients to lower costs. Maps of the poultry value chain are provided, and further studies of mini-mills and their role in rural poultry development are planned.

1. Improving agricultural value chain coordination in PNG
Katrina Kosec, Emily Schmidt, Lucia Carillo, Peixun Fang, Raywin Ovah
National Agricultural Research Institute
October 13, 2022
Port Moresby, PNG
Hilton Hotel

2. o Import substitution (poultry)
o Domestic food security (sweet potato)
o Export promotion (fresh vegetables)
Three selected value chains in PNG
capture the country’s interests in:

3. Poultry value chain
Motivation:
▪ Chickens are a good source of income.
▪ Chickens (and eggs) are high quality
protein food.
o Studies have show strong associations
between children stunting and
insufficient protein consumption (such
as that obtained from animal-sourced
food)
▪ Chicken farming empower women

4. Poultry value chain
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
Quantity
(thousand
tons)
Value
(million
USD,
real
at
2019
price)
Value and quantity of poultry imports by PNG (2001-2020)
Total import (value) Total import (quantity) Australia import (quantity)
Source: Authors’ calculations using BACI International trade database at the product level (2022)

5. Poultry value chain
Key issue:
Chickens are expensive in many developing countries due
to the inefficient value chain.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
PNG Indonesia Myanmar
Price
per
kg
(USD)
Price ($/kg) of live chicken in 2019

6. Lower consumption of poultry in rural than urban is likely related to both demand
factors (e.g. income) and supply factors (e.g. low productivity can lead to low
supply and high prices).
0.0
2.0
4.0
6.0
8.0
10.0
Poor Non-poor Poor Non-poor
Urban Rural
Expenditure share in total food (%) of main animal-sourced
food in PNG
Pork Poultry Tinned meat Fish and seafood
Source: Author’s calculation using HIES 2009/10.
Rural households consumed relatively much less
animal-sourced food than urban, especially poultry

7. ▪ A lead firm/ integrator can play key role in
the development of poultry cluster, but need
additional support and incentives from
government
e.g.: Poultry cluster is common across
developing countries all over the world.
Poultry value chain
Opportunities:
Poultry cluster development with government/NGO support?

8. Poultry value chain
Opportunities:
Mini-feed mill model needs further investigation
▪ A mini feed mill model uses local ingredients such as sweet
potato and cassava to produce livestock feed.
▪ NARI has piloted several trials of domestically produced
poultry feed and achieved positive results.
▪ A series of qualitative interviews on mini-feed mills and their
upstream and downstream actors (poultry farmers, inputs
retailers, and ingredients suppliers) will be conducted in the
Highland and Morobe in November by NARI-IFPRI to further
look into the constraints and opportunities of this model.
Photos source: Phil Glatz, et al.

9. Poultry value chain mapping in Papua New Guinea
Regional/local mini
feed mills
Inputs
wholesale/retail
stores
Poultry farmers/
enterprises
Commercial feed
mills in Lae
Inputs
wholesale/retail
stores
Trader/agents of
inputs
Poultry farmers/
enterprises
Commercial buyers
(schools, hospitals,
etc.)
Consumers
Supermarkets/
retail/ open markets
Consumer
Day-old-chicks
hatcheries
Inputs
wholesale/retail
stores
Commercial poultry
enterprises (e.g
Tablebirds, Zenag)
Supermarkets/
retail
Consumers
Out-growers
Imported feed
Commercial poultry
enterprises (e.g.
Tablebirds, Zenag)
Inputs producers
Inputs traders
Poultry
producers
Poultry traders
Poultry consumers

10. Summary
▪ We study three value chains:
oPoultry
oSweet potato
oFresh vegetables – discussed in detail in the paper and brief
▪ Synopsis brief link: https://www.ifpri.org/publication/synopsis-improving-agricultural-value-chain-
coordination-and-gender-inclusiveness-papua
▪ Working paper link: https://www.ifpri.org/publication/improving-agricultural-value-chain-coordination-
and-gender-inclusiveness-png
▪ Opportunities for further exploration:
oPoultry:
oRole of mini-mills in the development of poultry value chain in rural areas
o(Cluster) development of the rural poultry producers and input producers (e.g.
Innovative Agro Industries)

11. Thank you