The agricultural sector accounts for approximately a quarter of Papua New Guinea’s GDP. Agriculture remains the principal economic activity which provides livelihood for 85% of the rural population who rely directly on subsistence farming for their basic needs, having only little contact with the formal economy.
Papua New Guinea has fertile soils and favourable climate which permits cultivation of a wide variety of cash crops particularly in the highlands, coastal, and island regions. Production of cash crops is usually centred on plantations but significant smallholder production among rural communities also exists. Small scale farmers either sell their produce to the plantations, or to the numerous community boards acting as centralised buyer and seller set up to stabilise prices and improve bargaining power. The main agricultural exports of the country include cocoa, coffee, copra, palm oil, rubber, and tea.
With 2.5 million square kilometres of fisheries area known as Exclusive Economic Zone, Papua New Guinea accommodates an extensive and valuable marine resource. Fishing operations range from small-scale coastal commercial operations to large-scale deep water tuna fishing operations. The tuna industry in the country has evolved from licensed harvesting by international fishing vessels to now include in-country production and canning operations. Papua New Guinea delivers 14% of the world’s tuna catch and has an existing agreement with the EU to allow duty-free exportation of tuna to the region.
How can PwC help?
At PwC, we are uniquely placed to support Papua New Guinea’s agribusiness. As one of the largest providers of professional services to the sector, we have a diverse range of clients across different cross sections of the industry including crops, livestock, forestry, and aquaculture. Our people consistently connect their thinking, experience, and solutions to add value for companies and their stakeholders.
Our team in Papua New Guinea has dedicated professionals who understand the ever-changing landscape of agribusiness backed with our extensive networks within the PwC alliance.
- Assurance
- Tax
- Consulting
Assurance
Assurance includes external and internal audit, risk and control solutions and accounting advisory. Auditing agribusiness companies often presents its own unique complexities. Whether it be applying the agriculture accounting standard (IAS 41), understanding illiquid soft commodity markets, understanding the impact of prolonged drought on asset values, or accounting for water rights, a deep knowledge of the industry is key.
