Expanding cocoa trade

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Expanding cocoa trade

This project aims to improve the competitiveness and sustainability of cocoa sector in Papua New Guinea through strengthened food safety and quality management along the smallholder driven value chain. Addressing the SPS challenges throughout the value chain will improve productivity; increase exports and sales to high value premium markets; boost incomes and reduce poverty by impacting the livelihoods of 1 million rural people.

Background 
Cocoa production in Papua New Guinea nourishes the livelihood of 151,000 households representing 14% of the population who relies directly on cocoa export incomes. Whilst cocoa is traditionally one of the most important crops, since the outbreak of Cocoa Pod Borer in 2008, the sector declined heavily losing its high export dynamics. Nowadays, the sector is concerned by low and stagnant yields, inconsistent quality and SPS risks present in cocoa production and processing. SPS challenges are mostly related to PAH contamination from defective dryers; presence of heavy metals presenting potential contamination with cadmium; presence of pesticide residues; and Ochratoxin A (OTA) contamination. Nevertheless, studies underline bright prospects for growth in the global market for PNG cocoa for the future. 

This project was designed rigorously through a PPG approved in March 2016, which permitted to identify clearly the capacity gaps and needs in coffee and cocoa value chains; and possible synergies with other planned or on-going activities in the region. PNG cocoa relies on a smallholder driven supply chain, thus this project will focus on improvements amongst the smallholders and small-scale processors to address identified problems. 

Documents 
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Reference Number 
STDF/PG/553
Status 
Awaiting
Project Value (US$) 
859,234
STDF Contribution (US$)  
623,275
Beneficiaries 
Papua New Guinea
Implementing Entities 
Cocoa Board of Papua New Guinea