Coconut is the fourth most significant cash crop in terms of its economic importance to Papua New
Guinea (PNG). An estimated 35% of total households, or 2.6 million people (based on 2011 PNG
National Census), are engaged in the cultivation and production of coconut.

One focus area of the Kokonas Indastri Koporesen (KIK) is to help smallholder coconut farmers
increase their production levels.

KIK Managing Director, Mr Alan Aku said, “Through the funding support we receive from the
National Government, we are able to implement our program activities, with our focus areas on,
Coconut Replanting/New Planting program, Downstream Processing and Value addition of coconut,
Research and Development on pest and diseases; agronomy and farming systems; and breeding.

“Currently we have Coconut Development Officers (CDO) in 9 of 14 coconut growing provinces
working closely with the Provincial Division of Agriculture and Livestock (PDAL) and district
extension officers, implementing our program activities.” Through awareness sessions conducted on
coconut replanting, downstream processing and white copra production, we have seen an increase in
farmers’ interest to get into coconut business.” adds Aku.

“Recently, our officers in partnership with local leaders of Murukanam village in Madang Province
established a coconut model farm to demonstrate coconut farming systems and seed nut nursery for
seedling distribution to local farmers.

“Peter Makan, the landowner at Murukanam said, we are so happy to allocate a portion of our land to
KIK, who has set up a resource center here, so the community can have access to resources that will
enable us improve and expand our coconut farms.”

“General Manager for KIK Industry Services, Alfred Nongkas said, the area will be a one stop shop
for our farmers, it will develop into a Resource Centre that will be used for training and awareness,
coconut nursery for the replanting program, coconut-based farming systems for intercropping food
crops, cash crops such as vanilla and cocoa and livestock like cattle which the farmer can learn, develop
and manage.”

With the introduction of downstream processing of high value coconut products and the shift to white
copra production, a shed will also be built at the site for storage of white copra produced by the farmers
and will be managed by the KIK Subsidiary, Coconut resources Limited.

“A coconut sugar farm will also be set up, which will be used to conduct training on coconut sugar
production.” adds Nongkas.

“This partnership with the local farmers has also paved the way for other stakeholders like Mi Bank
who have and will continue to open bank accounts for our coconut farmers. They will also run financial
literacy programs to help our coconut farmers manage the money they get from white copra production
and sale.” said Nongkas.

KIK is also embarking on collaborative work with other partners like National Agriculture Research
Institute (NARI) and Fresh Produce Development Agency (FPDA) who will facilitate post-harvest and
marketing trainings for our farmers who under the coconut-based farming systems will intercrop
coconut with food crops.

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