Location:Western Province - PNG
Impact:10,000 by 2020
Crop:Rubber
Stage:Build
Partners:Ok Tedi Development Foundation and Olam

WHY


Considerable investments have been made into the rubber industry in Western Province over the last 20 years. Natural rubber production has the potential to provide sustainable livelihoods for more than 10,000 smallholder rubber farmers living in remote areas of the North, Middle and South Fly Districts. Growth was constrained due to a lack of transport infrastructure to get the cup lump rubber out of the region to market. As a result, farmer incomes are well below their potential.

HOW


The project looks to redesign the rubber industry in Western Province to create greater income opportunities for these remote communities. To achieve this, Business for Development was commissioned by Ok Tedi Development Foundation, to map the existing value chain, identify new supply chain opportunities and introduce off-take partners. After mapping the process along the Fly River and around Lake Murray, an MOU was negotiated with Olam International, introducing this large global commodity trading company as a key commercial off-take partner.

WHAT


Through facilitating and managing the construction of a road supported by the community’s fund called the CMCA portion of the WPPDTF, the cup-lump rubber could now be transported to Aiambak where a factory will be built to process the rubber and export.

This will provide immediate access to global markets for the rubber produced by the people of the remote Lake Murray and Middle Fly areas, and over time, it is anticipated that the initiative will benefit thousands of Papua New Guineans in Western Province.