2011, Volume 19, Paper 5
ISSN: 1883-5675

Assessing buyers’ requirements for fresh produce in the formal market sector in Papua New Guinea

Christie Chang – Research Fellow, Institute for Rural Futures, University of New England
Garry Griffith – Adjunct Professor, School of Business, Economics and Public Policy, University of New England

Abstract

A market survey was conducted in five main city centres in Papua New Guinea to better understand buyers’ requirements for fresh produce of major buyers in the formal market (wholesalers, the food services sector and supermarkets). The objectives of the survey were to provide farmers with this market information and to identify marketing opportunities which suit their circumstances. The principal considerations for the buyers at the formal market are consistency in supply, price and quality. Consistent supply is important for all these business buyers. The quality of fresh produce is very important to supermarkets, international airlines and international hotels, but it is less important for institutional buyers for whom price is more important than quality. For those buyers who consider quality to be important, their demand for quality is not satisfactorily met partly because they cannot communicate their quality requirements to suppliers. It seems communication problems occur because quality requirements are not well-defined and “quality” is perceived and interpreted differently by different participants along the supply chain. Currently there is no quality standard for fresh produce in Papua New Guinea at all marketing levels. The establishment of quality standards for key vegetables appears to be a reasonable starting point for improving communication on, and meeting, quality requirements from the formal market. Locally appropriate quality standards will help provide incentives to farmers to produce quality products and guidelines to improve postharvest handling.

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