Lufa Cooperative hits record K27 Coffee price, farmers reap big gains

The Lufa Oliguti Farmers’ Cooperative Society (LOFCS) has recorded its highest-ever coffee price since its establishment in 2020, achieving K27 per kilogram for green bean under its 2025 season group marketing program.

This milestone marks a significant step forward for the cooperative, which began collective marketing in 2021 to strengthen farmers’ bargaining power and improve returns.

Over the past five years, LOFCS has distributed more than K331,000 in coffee earnings to its members through group sales. On average, farmers have received approximately K4 per kilogram above prevailing roadside parchment prices, demonstrating the clear financial advantage of organized marketing.

During the 2024 harvest season, LOFCS farmers earned about K5.50 per kilogram above roadside prices — the highest differential achieved to date. These results confirm that structured aggregation and negotiated sales provide price leverage that individual smallholders cannot secure independently.

LOFCS Chairman Michael Yanepa said the cooperative anticipates increased production in the 2026 season following substantial investments made over the past two years under the Coffee Industry Corporation’s PACD Project (2024–2025).

These investments include intensive farmer training in coffee husbandry and quality management, distribution of essential farm tools and materials to 323 smallholder farmers, and construction of a 25m x 17m coffee storage shed to improve post-harvest handling and aggregation.

Farm inspections indicate improved crop condition and increased tree productivity, positioning the cooperative for a stronger harvest in the coming season.

Mr. Yanepa acknowledged the support of CIC Extension Officers under the leadership of Highlands Region Coordinator Samson Jack for their commitment in strengthening the cooperative during its formative years.

He also expressed appreciation to PACD Project Manager Potaisa Hombunaka and Project Coordinator Alphy Semy for ensuring that project funding directly reached village-based farmer organizations. This approach has enabled practical capacity building at the grassroots level, equipping farmers with the skills, infrastructure, and tools necessary to improve both yield and quality.

Lufa District is widely recognized for its organically grown coffee. Through the “Sekim Kofi Partnership” under the PACD Project, LOFCS expects sustained improvements in production volume, quality consistency, and market access in the coming years.

Looking ahead, Mr. Yanepa confirmed that LOFCS intends to align its operations with the forthcoming Coffee Authority Act 2025 and the establishment of the National Coffee Authority.

The cooperative plans to apply for registration as an Authorized Buyer, enabling LOFCS to formally register its farmers under the Green Gold Card Program. This step is expected to strengthen traceability, compliance, and structured participation in the national coffee value chain.

Mr. Yanepa emphasized that cooperatives remain one of the most practical and effective models for consolidating fragmented smallholder production into commercially viable volumes capable of negotiating stronger market positions.

The K27 per kilogram green bean price achieved this season has strengthened farmer confidence in collective marketing. LOFCS anticipates increased participation in the 2026 group marketing program as more producers recognize the financial benefits of organized aggregation and negotiated sales.

LOFCS continues to position itself as a structured, farmer-led organization focused on improving price realization, production capacity, and long-term market access for smallholder coffee growers in Lufa District.

ATHURSON Olua
ATHURSON Oluahttp://www.thepngsun.com
He holds a Bachelor of Art Degree majoring in Theatre Arts while minoring in Journalism/Public Relations from the University of Papua New Guinea (UPNG).

━ Related News

PM Marape welcomes K550 million Kumul Petroleum dividends, backs Papua LNG investment

Prime Minister James Marape on Tuesday welcomed Kumul Petroleum Holdings Limited’s K400 million dividend payment to the National Government in Port Moresby, bringing its...

ExxonMobil takes over operatorship of Papua LNG Project

ExxonMobil PNG Antelope Limited has formally assumed operatorship of the Papua LNG Project following an agreement reached by project partners TotalEnergies, Santos and ENEOS...

PM Marape hails landmark Papua LNG deal between Central and Gulf provinces

Prime Minister James Marape has commended Gulf and Central leaders, landowners and communities for reaching an 80:20 benefit-sharing agreement on Papua LNG, clearing another...

El Niño cuts Highlands cabbage and taro supplies, Port Moresby prices soar

El Niño-induced dry conditions are disrupting food supplies from Mt Hagen to Port Moresby, a sweet potato (Kaukau) bag distributor told PNG SUN last...

Pacific Balanced Fund declares historic K25 million dividend – highest in 53 years

The Pacific Balanced Fund will pay more than K25 million in dividends to its unitholders, the highest payout in its 53-year history since 1973.Executive...