By Wasita Royal
Local farmers in East New Britain Province are said to have shifted their focus to balsa and are giving less attention and time to other important commodities like cocoa and coconut. People have been planting balsa for the last six (6) to seven (7) years when its demand was high. However, prices have dropped since then due to more supply of balsa trees with no markets and limited buyers in the province.
According to an officer from the Provincial Division of Commerce Steven Paivut, many of the local balsa farmers have turned up at the division office seeking advice on how to go about in exporting their balsa trees.
The commerce officer mentioned that balsa market is available with buyers; however data from the farmers need to be collected in order for the signing of the market agreement to be done to allow marketing to take place. The survey of data collection has started through distribution of questionnaires in some wards.
“We want to make things work by trying our best through collection of data from farmers in all districts,” Mr Paivut said.
He explained that the division is in the process of setting up the operation of an exporting company called NGI Commodities.
“We are running this concept for balsa but other commodities must also be preserved because the same concept will also be applied to cocoa, coconut and other commodities,” he announced.
He urged farmers not to destroy their cocoa and coconut plantations and other commodities because the lifespan of balsa is less compared to other commodities.
“We want to help farmers transport their balsas from their door steps to the buyers. Round logs will not be sold, all balsas will be processed. Harvesting will be done according to the farmers’ requirements. Quality control will also be done on each trees,” said Paivut.
He explained that 30-35% of the shares will go to the company while the farmer will get 65-75% of the shares. The 30-35% of the share will be for the farmers’ contract for resources and labour inclusive of overhead tax.
Mr Paivut told the participants that foreigners have been benefiting from our resources for far too long; therefore locals have to work with the economic sector to bargain and bid on the prices.
He said many farmers want to export their products in bulk. All balsas cannot be exported at once, therefore, all farmers need to work together to use a bargaining power for the price to the buyers.
He also stated that currently, the average price on the world market is US$400 for a cubic metre; however, other buyers have their own prices.
The first shipment should be expected between June and July, according to Mr Paivut.
He stated that through the contracts to be distributed by the Commerce Division or the company, spin offs will go back to the farmers especially with employment if resources are available.
