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Port Moresby
December 9, 2021
News Southern

Commercialization Of Rubber In North Fly

People’s Reform Party (PRP) leader and North Fly Open MP Hon.James Donald announced today that the commercialization of rubber provides for the highest employment of locals in Western Province.

“The biggest employer in Western Province is the cultivation and production of rubber and this fact must be told to the world with a total of 11,412 farmers and growers across the  whole of Western Province.” declared Donald.

Donald said that North Fly Rubber Ltd (NFRL) is the management company owned by the 11,412 small holders that operates a rubber processing plant in Kiunga in the North Fly Open Electorate.

Donald explained that coagulated latex is brought in from all over Western Province by rubber farmers using the Fly River and by road for processing and is packaged into PNG Classified Rubber Grade 10 (PNGCR10) for exported to overseas markets since 1994.

Latex is the milky fluid obtained from tapped rubber trees and acids such as methanoic acid is added to make the latex coagulate (colloidal rubber particles) forming coagulated latex.

Donald maintained that in 2018, North Fly District Development Authority (NFDDA) entered a 5 year ( 2018-2022) Price Enhancement Program contract signed with North Fly Rubber Ltd ( NFRL) to consider assisting rubber farmers with price enhancements incentive with a plan of annual funding of K500,000 to be paid to NFRL to implement the program.

“NFDDA honoured the 2018 payment and today another K500,000 was paid for 2019 while payment for 2020 and 2021 will be made available soon.” confirmed Donald.

Donald revealed that the funding done today is from the K1M Covid 19 Agriculture Stimulus Package funds with the other K500,000 allocated for rice program in the electorate.

The People’s Reform Party leader said that the price enhancement incentive also has a package to introduce bonus pay out to farmers against their total annual production.

“On record the farmers did collect their 2018 bonus in 2019. For 2019 and 2020 the bonus pay out will be decided soon. This bonus is only for North Fly District farmers and doesn’t include other two Districts.” Donald detailed.

The first term MP said that currently in PNG there are only two rubber factories operating and they are the Kiunga Rubber Factory in Western Province and the  Doa Rubber Factory in Central Province.

“Others in the country like the Gavien in East Sepik including have closed down some years ago.” concluded Donald.

Caption shows NFDDA CEO Mr. Greg Isau (left) presenting the K500,000 funding to NFRL Factory Manager Mr. Renagi Lohia (centre) and Managing Director Mrs. Winnie Cacgauccian earlier today.

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