The impacts of production and price shocks on the coffee industry in PNG

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dc.creatorArua, Stanley
dc.creatorGondo, Robert
dc.creatorKinau, Adrian
dc.creatorKotto, Aaron
dc.creatorDorosh, Paul A.
dc.creatorSchmidt, Emily
dc.creatorTian, Junyan
dc.date2024-03-15
dc.date2024-03-18T18:30:52Z
dc.date2024-03-18T18:30:52Z
dc.date.accessioned2026-06-27T15:35:03Z
dc.descriptionCoffee is one of Papua New Guinea’s leading agricultural export in value terms, accounting for 156 million USD of export earnings in 2021 (FAOSTAT, 2023), 13 percent of agricultural export revenues and 1.4 percent of total export revenues. The coffee industry is a major source of income for some 2.5 million people, mainly in farm households, and is cultivated in 17 out of 22 provinces (ACIAR, 2021). Coffee exports and incomes are threatened, however, by a number of supply side factors such as ageing coffee trees, outbreaks of coffee berry borer, poor production practices and challenges in reaching markets (i.e. transport and post-harvest handling), as well as by demand-side fluctuations in the world price of coffee (World Bank, 2022; Dorum et al., 2023). This research note first presents an overview of PNG’s coffee sector, including a discussion of production trends and structure of the coffee value chain. We then utilize a simple partial equilibrium model of coffee supply and demand, along with data on coffee production and household consumption from the PNG Household Income and Expenditure Survey (HIES) of 2009/10, FAOSTAT and the World Bank, to simulate the impacts of potential production and price shocks on the coffee industry in Papua New Guinea (PNG). Finally, we present an analysis of price movements in recent years and the potential costs and benefits of a price stabilization policy for coffee producers.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/140479
dc.identifier.urihttp://hdl.handle.net/123456789/108560
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.relationhttps://hdl.handle.net/10568/140447
dc.relationhttps://hdl.handle.net/10568/140446
dc.rightsOpen Access
dc.sourceArua, Stanley; Gondo, Robert; Kinau, Adrian; Kotto, Aaron; Dorosh, Paul; Schmidt, Emily; and Tian, Junyan. 2024. The impacts of production and price shocks on the coffee industry in PNG. Papua New Guinea Project Note 14. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/140479
dc.subjectcoffee
dc.subjectagriculture
dc.subjectincome
dc.subjecthouseholds
dc.titleThe impacts of production and price shocks on the coffee industry in PNG
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)