Diagnosing Problems, Price and Market Analysis for Papua New Guinea.

Abstract

Approaches to analyzing marketing systems for PNG agriculture are presented in this paper. Smallholder farmer and village markets can be analyzed with marketing methods similar to those employed for large scale commercialized farming. An approach called marketing systems research is reviewed. Some marketing studies of this nature have been undertaken already in PNG. Marketing systems research has its parallel with farming systems research. Methods of demand and price analysis are then reviewed. In most cases, the small-country assumption is likely to be appropriate for PNG ’s export crops, although this should be tested for the main ones under different world market conditions. For domestic crops, prices are likely to be very responsive to shifts in local demand and supply. PNG's markets for domestic crops will become better linked and more stable as infrastructure and agricultural development occurs and as more products enter markets. Some aspects of government involvement in markets are reviewed.