A feasibility study for a new wholesale fresh produce market in Port Moresby
Bonney, LB and Shantapriyan, P and Muscat, P and Worinu, M, A feasibility study for a new wholesale fresh produce market in Port Moresby, Acta Horticulturae, 17-22 August 2014, Brisbane, Australia, pp. 83-90. ISSN 0567-7572 (2014) [Refereed Conference Paper]
Copyright 2015 The International Society for Horticultural Science
Agriculture in PNG involves 86% of the population but only accounts for 36% of GDP. The demand for fresh produce in PNG is growing with the resources boom and the growth of the middle class. Yet 60% of Port Moresby’s (POM) total demand of 167,000 tonnes per year is currently being met by ‘informal supply’. There is significant potential to improve the GDP and reduce poverty by establishing a wholesale market in POM. This study investigated the feasibility of establishing a wholesale market in POM considering the constraints in fresh produce chains from Central Province and the Highlands Provinces. It involved interviews in PNG, New Zealand and Australia, and a survey of existing infrastructure. Data were analysed using thematic analysis and market operations modelled under twelve financial scenarios. The research concluded that the provision of a wholesale market in POM could improve the efficiency and effectiveness of fresh produce supply chains by drawing the majority of fresh produce into one venue promoting price and quality competition, improving the sustainability of supply and reducing supply risk for buyers. In doing so, it would improve the future inclusion of smallholders in the emerging fresh produce marketing system. However, it was also concluded that the investment in fresh produce chain improvements should be staged over 3-5 years to allow capacity development within the chain, to improve security in POM retail markets and ensure the inclusion of the unemployed and working poor in the system whilst a new wholesale market was constructed.