The CIC Board responded to Coffee growers concerned in declaring five [5] Highlands Provinces of PNG a restricted region in trading of cherry coffee. The policy was immediately taken on by the management and a Cherry Trade working Committee was appointed to drive the implement process. The policy existence was primarily to deal with the problem of cherry theft which has contributed to loss of profitability and abandoning of coffee gardens and plantations. However, precisely there was no study conducted to concretely conclude the hypothesis. Since then, The Cherry Trade Policy was published in National Gazette effective 1st January 2008.

Since the inception of Cherry Trade Policy (CTP) in 2008, IR&C continuously implemented the policy in the form of; Awareness, Surveillances, and Prosecution. The policy has been introduced to three (3) provinces out of the five (5) gazetted provinces. After three years of implementation, the outcomes are as such;

  1. Mode of Approaches taken to effect and enforce the policy since 2008;
  1.  Awareness/campaign on the concept
  2.  Surveillances
  3.  Prosecution
  1. Achievement
  1.  EHP & Simbu, growers mobilized into forming cooperatives to access better markets. Cherry trade declined, and parchment quality improved
  2. 70% of Cherry Traders in Jiwaka obtained contractual agreement from registered wet factories to trade cherry
  3. 95% of Cherry Traders mostly in EHP and Jiwaka used metallic  CIC plate to transport cherry to registered wet processors
  4. Trained CIC Reservist to empower and enforce the policy.
  5. Developed wording of charges to implicate violators of the policy.
  6. Prosecuted violaters of the policy.

Since the practise of cherry trade become a cultural efficient household income, the policy strategises a regulative approach. The approaches are;

  1. Ban all roadside cherry buyers except in remote areas which are not served by registered wet factories
  2. Private buyers must have contractual arrangement with registered wet factories to buy cherries on behalf of the registered wet factories or also can be approved by the respective communities.
  3. Registered wet factories, contractual/private buyers must register their grower suppliers names along with crop details and buy only from them.
  4. Transporting of cherry coffee on any carriage must display crafted metallic plates issued by CIC through the wet factories.
  5. All cash payment done at the registered wet factories through formal receipts at the point of cherry collection.
  6. Buyers who do not comply to above [1-5] will be dealt with accordingly as conferred to CIC Act.

Currently the regulative approaches are positive and it is predicted that after five years with continuous funding, the policy will have reached and be embraced by at least 75% - 85% coffee growing citizens.

The CIC through its licensing process aims to provide standards and discipline into the conduct of industry players, ensuring minimum acceptable standard of farms inputs, factory equipment, mills and processing plants is maintained to produce quality coffee.

The CIC licensing categories as specified in its Corporation Act, 1991 are;

  • Manufacturer,
  • Exporter,
  • Processor-Wet & Dry, and
  • Permit to Build.

Licenses are usually issued to coffee businesses to operate once all requirements are satisfied per CIC standards. Physical inspection is often carried out to ascertain that the business has the right machinery, processing facilities and mills to engage in coffee trading. This process is necessary to maximize top quality coffee production and to ensure that only quality coffee is exported.

Quality is a priority with exports of coffee. Quality control practices are enforced by the CIC to. The Quality and Export Control Units facilitate quality assessments and certifications and export documentation for smooth transition of coffee for shipment to overseas buyers. Registrations of contracts agreed between exporter and importer are also registered for regulating requirements. Preparation of export documentation is done in partnership with relevant government agencies in making sure export policies and regulations are in compliance with industry standard policies and guidelines prior to shipment.

Once the documentation process satisfies all requirements and is in order taking into account quality and price then it is released for shipment. Coffee tax or levy collection account management is part of the process of this documentation.

The Quality and Export office also conducts final satisfaction process for export coffee. The country has developed a well organized regulatory system. Coffee quality is controlled from the cherry stage once harvested and processed through licensed dealers such as coffee processors, exporters and manufacturers right down to the point of shipping to overseas destinations.

Final certification process is conducted at the point of export where samples are taken from each export consignment and critically assessed to ensure it complies with quality specifications for export. It is assessed on physical aspects like defects, bean size and other aspects like odors and liquoring characteristics.  Coffee packed for export must comply with registered specifications. When all the process is satisfied a quality certifying certificate is issued and attached on the export documentation for release.

The regulation of the coffee industry is enforced through routine inspections. The Inspections section polices the industry to ensure all coffee dealers are complying with procedures and guidelines put in place by the CIC.

The Inspections and Licensing section issues licenses to dealers and conducts inspections to all licensed coffee dealers, roadside coffee buyers and other properties and premises where coffee is handled. It also implements and enforces industry policies and guidelines and implements training sessions for industry participants in quality and regulatory policy matters. These guidelines and policies are set up to control dealings of coffee so that premium quality coffee is processed and marketed, thereby maximising financial returns to all industry players.

Inspections being one of the fundamental components of IR&C has eight [8] inspectors engaged to perform and execute the functions of inspections. The Inspectors perform the following:

  1. Ensures that all exporters conform to PNG Standards for Green Coffee so that maximum FOB values are attained,
  2. Ensures that the industry quality of coffee at processing, manufacturing and exporting facilities/equipment standards are maintained and adhered to at all times by industry operators as required and constituted by CIC Board,
  3. Implement the Corporation’s policies on licensing of processors, manufacturers and exporters in relation to both equipment and coffee quality so as to increase quality and FOB values of PNG coffee.
  4. Conduct farmers and factory manager training to boost quality matters, and
  5. Guard the industry against antagonistic policies.

Exports are controlled by the Export Office in Lae. The bulk of the coffee ready for exporting are usually checked by the Export Control team to ensure it is following set guidelines put in place by the CIC. This is to ensure that CIC retains part of the Levy that is received for every export.

Quality is a priority with exports of coffee. Quality control practices are enforced by the CIC to. The Quality and Export Control Units facilitate quality assessments and certifications and export documentation for smooth transition of coffee for shipment to overseas buyers. Registrations of contracts agreed between exporter and importer are also registered for regulating requirements. Preparation of export documentation is done in partnership with relevant government agencies in making sure export policies and regulations are in compliance with industry standard policies and guidelines prior to shipment.

Once the documentation process satisfies all requirements and is in order taking into account quality and price then it is released for shipment. Coffee tax or levy collection account management is part of the process of this documentation.

The Quality and Export office also conducts final satisfaction process for export coffee. The country has developed a well organized regulatory system. Coffee quality is controlled from the cherry stage once harvested and processed through licensed dealers such as coffee processors, exporters and manufacturers right down to the point of shipping to overseas destinations.

Final certification process is conducted at the point of export where samples are taken from each export consignment and critically assessed to ensure it complies with quality specifications for export. It is assessed on physical aspects like defects, bean size and other aspects like odors and liquoring characteristics.  Coffee packed for export must comply with registered specifications. When all the process is satisfied a quality certifying certificate is issued and attached on the export documentation for release.