PACD Project Sparks Hope for Smallholder Farmers a

12 Sep 2025

Smallholder cocoa farmers in Karkar Island, Madang province will be on the verge of experiencing a major economic turnaround withing the next two to three years, thanks to the renewed efforts to boost cocoa production.

The two major cocoa and coconut estates on the Island Kulili Estate Limited and Biabi Enterprises Limited Estates are currently key partners with the PNG Agriculture Commercialization and Diversification (PACD) Cocoa project, an initiative of the Government supported by the World Bank.
,br> The two partnerships aim at supporting small-holder cocoa farmers on Karkar Island to improve their livelihoods by increasing the productivity of their crops as well as improve the living standard of the people, assisting them to be more self-sufficient and to have better access to markets, better education and support. During an interview with the Kulili Estate Managing Director Derick Middleton, he described that their involvement in the PACD project is timely.

He said for over 20 years there has been zero extensions on Karkar. Karkar used to be the biggest cocoa producer in Madang province and PNG but now has really dropped back because many smallholder farmers had abandoned cocoa due to CPB. “When cocoa prices were high this year, they had no trees left to benefit,” he said.

Now with over 100, 000 cocoa seedlings to be distributed to the contractual 1000 farmers it is a big help, said Mr Middleton. “In two to three years’ time the smallholder farmers will be harvesting these cocoas, and it will bring a massive difference in their lives. This will increase the standard of living of the smallholders also".

Apart of the project, supplying tools to the farmers is also a very important part of the project. Hofenes Asafo, the Project Assistant Project Manager, outlined the challenges that they faced in the implementation of the project such as distance of farmers in delivering the goods and services under the program.

He said a lot of cocoa smallholders in the Island are happy with this project as not all of them can benefit from the two estates. Looking ahead, Kulili Estate is exploring partnerships to develop downstream processing for coconut, including biodiesel production. Middleton believes this will create employment opportunities for women and youth and help improve living standards.