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MOA - NARI/Trukai partnership in commercial rice production

Press Release (14th August 2017): NARI is proud to announce a major partnership with the Trukai Industries Limited in the development of commercial rice production and analysis of the value chain to improve rice development in PNG.

This is a public-private partnership (PPP) that will see two of the country's major agriculture-based organisations putting together knowledge and resources in contributing to developing PNG's domestic rice industry, in line with the National Rice Policy 2015-2030.

NARI recognizes the importance of this PPP arrangement and therefore enters into this partnership with Trukai

  • firstly to enhance the contribution of rice research to the development of the rice industry, and
  • secondly as a means of revenue generation through the sale, to Trukai, of rice produced from NARI facilities.

The signing of this Memorandum of Agreement (MOA), today, signifies the commencement of this collaborative project, to be implemented at three NARI Centres (Bubia, Laloki and Aiyura) over the next 5-years.

NARI has identified Rice as an important commodity suitable for small-medium holder farmers with the potential to contribute to household and national food security and income generation. While Rice is a staple food in PNG, it is mostly imported, at 250, 000 tonnes per year at a value of approximately K300 million. Should the exporting countries not be able to sell to PNG (as was experienced in the recent 2015 El Nino Drought), our food security will be highly threatened.

The common Goals of the Agreement (MOA) are to contribute to increased domestic rice production and improve food security in PNG; support NARI with internal revenue generation; provide access to commercial volumes of suitable quality, locally produced rice for incorporation into Trukai products; and to undertake an economic analysis of the “Paddy to Plate” value chain, specific to PNG rice production.

A key outcome of this project is the economic research into the value chain of rice production and marketing in PNG, and information generated from this study will be useful for developing our domestic rice industry. Rice needs to become a cash crop in PNG due to its demand as a critical food item!

Based on the agreement NARI allocate farmland; produce rice; and provide technical and scientific manpower, and facilities and equipment to support the required collaborative rice research and commercial rice development activities.

Trukai will provide funding, seeds of recommended varieties, farming inputs, use its established marketing network in PNG to distribute rice seeds and also offer to purchase paddy rice at prices reflective of global commodity markets. NARI is keen to participate in this collaboration to generate necessary information, make some revenue and set a model for the country's domestic rice production.

Professor Chalapan Kaluwim (Chairman - NARI Council)

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