Coffee delays put farmers at risk

Coffee farmers in the Highlands could face further disruption to their income as the movement of coffee to Lae for export remains stalled during one of the busiest periods of the season.

Coffee from producing areas, including as far as Mt Hagen, is transported by road to Lae, where it is prepared and transferred into shipping containers for international markets.

The stoppage is affecting the chain between growers and overseas buyers, with exporters holding coffee at warehouses and wharves while inspections and export clearances remain affected.

Lae Chamber of Commerce and Industry president John Byrne said the disruption could have consequences well beyond the port, affecting growers, buyers, transport operators, storage facilities and workers who depend on the coffee trade.

“It’s not just the exporter that is affected. It goes right back to the grower,” Byrne said.

The situation is developing during the busiest month of the coffee export season, according to the LCCI.

Exporters have reportedly slowed or stopped sending new coffee to Lae while the issue remains unresolved.

Coffee already packed in international shipping containers could also face additional costs if it has to be removed and transported back to the Highlands because of Lae’s humidity.

For farmers, delays in getting coffee from the Highlands to overseas markets could mean delays further along the payment and supply chain.

Byrne said the disruption also risks affecting Papua New Guinea’s reputation with international coffee buyers if orders cannot be fulfilled on time.

The export stoppage follows the transition from the former Coffee Industry Corporation to the National Coffee Authority, with administrative and financial authority issues affecting some operations, including export inspections and clearances.

LCCI is calling for the issue to be resolved quickly so coffee can continue moving from growers to international markets.