Coffee producing countries with more small coffee farms introduce Papua New Guinea

In Papua New Guinea, about 75 per cent of coffee products come from small local farms. Many farms reclaim land in the forest, and some are in the depths of the forest, almost isolated from the rest of the world. Coffee in the country is grown on highlands between 1300 and 1800 meters above sea level, so it is of high quality. Although coffee is also grown in some lowlands, the yield is relatively small. Most of the locally grown coffee is grown under natural conditions because of the problems and high costs of transporting chemical fertilizers and pesticides to the farm.

The coffee industry plays an important role in the country's economy. More than 1 million people are directly and indirectly engaged in the industry. The government encourages planting by offering a minimum purchase price. The industry itself is controlled by the Coffee Industry Council (Coffee Industry Board). The commission is located in Goroka, in the eastern part of the island, while exports are handled by private companies.

The frost in 1975 destroyed most coffee crops in Brazil, but stimulated the development of coffee in Papua New Guinea. The Government has implemented a scheme to finance the creation of about 20 hectares of coffee plantations in rural or collective land ownership. This measure has indeed increased the penetration of coffee in the local economy, with annual production reaching 1 million bags by 1990.

However, it is almost inevitable that the surge in production leads to a decline in quality. Before 1991, the quality of coffee was good, and most of it belonged to open Y and so on. After 1991, the quality gradually declined, and with it the European market was lost. The extra price of coffee such as Y also gradually fell. This is related to the country's policy of "one grade, one price". This policy is not feasible for an industry as volatile as coffee. As a result, poor quality coffee beans have damaged the image of high quality standards for coffee such as Y, resulting in a backlog.