RUBBER CRISES|PNG FARMERS STRUGGLE AS INDUSTRY STRUGGLES

By Naomi TAKOMA

The rubber industry in Papua New Guinea (PNG) has experienced a significant decline in export value and production over the past two decades, raising concerns about the future of the sector and its contribution to the national economy. Speaking at a recent forum, Dr. Osbourne Sadina emphasized the need for strategic interventions to revitalize the industry and ensure sustainable growth.

According to export data from the Bank of Papua New Guinea, the value of rubber exports peaked in 2011 at K41 million but has since dropped significantly, reaching only K13 million in 2023.

Similarly, production levels have declined, with the highest recorded export volume of 5,400 tonnes in 2009, now reduced to just 2,700 tonnes in 2023. Dr. Sadina attributed this downward trend to various factors, including land disputes, lack of investment in plantations, and challenges in maintaining consistent production levels.

“We see a clear pattern where declining production levels are affecting export value, despite the international price of rubber remaining relatively stable,” Dr. Sadina explained. “Agriculture remains a crucial sector for economic growth and employment, and it is important for the government and stakeholders to focus on strengthening this industry.”

He also pointed out that while PNG’s mineral and gas sectors dominate economic discussions, they are capital-intensive industries with limited employment opportunities. In contrast, agriculture, including rubber, provides direct income to smallholder farmers and rural communities.

One of the key challenges raised during the forum was land tenure disputes, particularly for large-scale plantations. Smallholder farmers also face obstacles such as limited access to quality planting materials, infrastructure challenges, and fluctuating global market conditions.

Dr. Sadina called for improved policy support, increased investment in rubber plantations, and better land governance to address these challenges. He emphasized that collaboration between the government, private sector, and local communities is essential to reversing the declining trend and ensuring the long-term viability of PNG’s rubber industry.