NGIP Agmark

C O C OA I N THE LAND OF A THOUSAND C U LT U R E S Having grown up with the cocoa industry, we speak to Steven Nightingale, COO of NGIP Agmark Ltd, and gain a unique insight into the progressive company supplying the globe with high quality cocoa Writer: Marcus Kääpä | Project Manager: Kyle Livingstone

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NGIP AGMARK LTD FOOD & DRINK

“The cocoa industry is under threat from other commodities, falling prices and lack of land due to a growing population. Most of the land in PNG is customary so it’s very hard to buy large blocks to use for farming,” explains Steven Nightingale, COO of NGIP Agmark Ltd (NGIP Agmark).

“The country’s infrastructure also has a large impact on the industry such as the increasing costs of goods and services, and in the end, this all hits the last people on the line - the farmers.”

In stark contrast, the COVID-19 pandemic had the opposite effect on the cocoa business in PNG, according to Nightingale.

“However, the pandemic put people back on the land to tend to their crop for income, and so was beneficial to business,” he says. “There was not a lot we had to do to adapt, as we continued to be there for our staff and especially our farmers. We followed all protocols set down by the authorities and worked within them. We are proud to say we didn’t lay off any staff throughout the entire pandemic!”

COCOA ACROSS PNG

P

apua New Guinea (PNG) is home to a significant cocoa industry.

Today, hundreds of thousands of family livelihoods rely on the trade, with the sector contributing approximately 300 million PNG kina (around 88 million USD) annually.

Although this is overshadowed by larger scale global cocoa production in countries such as Ivory Coast, PNG’s industry is internationally reputed for producing high-quality cocoa, with the country’s trade in demand all over the world. However, it is not without its challenges.

NGIP Agmark is a diversified agribusiness based in PNG, operating plantations, coastal shipping, agricultural retail supply, machinery, trucking, logistics, and stevedoring.

“We are PNG’s leading cocoa company, the country’s largest cocoa grower, trader and exporter,” Nightingale tells us. “NGIP Agmark is headquartered in Kokopo (East New Britain Province), a part of the world unique for its peaceful, tropical vibrancy and diverse environments such as its rainforests.

“From this exotic base we trade more than 30 percent of PNG’s cocoa into Asia, China, New Zealand, Australia, the US and Europe, shipping directly to the world’s largest chocolate manufacturers. We are also involved with the marketing and trading of a range of other agricultural commodities including coffee, copra, APAC Outlook issue 56 | 3

NGIP AGMARK LTD FOOD & DRINK

NGIP AGMARK DECADES IN THE INDUSTRY A publicly owned company with approximately 4,000 shareholders listed on the Port Moresby Stock Exchange, NGIP Agmark is an amalgamation of two companies, New Guinea Islands Produce Company (NGIP) and Agmark Pacific Limited (APL).

NGIP was set up in 1957 as a “Tolai Cocoa Project” by what was then the Colonial Administration to function as a cooperative buying venture. It operated 18 fermenters and processed dry cocoa with the aim of developing an economic base around cocoa within East New Britain Province, and it was incorporated as a company in 1971.

By 1990 APL, alongside two other cocoa-growing companies, was managing 23 projects covering 4,400 hectares of redeveloped cocoa plantations. APL quickly diversified from its base of cocoa buying and agricultural management to establishing businesses in hardware retailing, coastal shipping and steel fabrication.

The two companies (NGIP and APL) formally amalgamated in 2005, consolidating the relationship established in 1989, with each now owning 50 percent of NGIP Agmark.

Today, NGIP Agmark is the country’s largest cocoa grower, trader and exporter. The company exports more than 60 percent of PNG’s cocoa into Asia, China, the US and Europe, directly to the world’s largest chocolate manufacturers.

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essential oils, chillies, pepper, and other spices.”

NGIP Agmark’s physical footprint includes plantations in East New Britain Province, cocoa buying points across the PNG islands and mainland, agricultural supply retail outlets at more than 10 locations, coastal shipping based out of Rabaul, land transport in East New Britain Province and Morobe Province, and engineering fabrication in Kokopo.

“We also have a growing portfolio of property and share investments across PNG,” Nightingale says. “We have anywhere between 600 to 750 employees depending on the cocoa seasons, and we aim to continue to be the premier producers of cocoa, provide the highest quality customer service, and to keep on educating our farmers.

“Another core part of our company mission is to work hard to strengthen our relationships with our farmers’ needs by connecting with them to meet those steady demands, while also maintaining strict standards on both production quantity as well as quality within each production process. On top of this, we work hard every day to provide our customers with high-quality service that they can rely on. We take great care in developing our staff - both now and into future generations!”

ROOTS IN THE SECTOR For Nightingale, the cocoa industry in PNG is a familiar space and one deeply ingrained in the past, both personally and culturally.

“My dad has been in the cocoa industry for as long as I can remember,” he tells us. “We lived on a cocoa and copra plantation from 1980 and still have the same plantation today - Watta Plantation on the east point of the Gazelle Peninsula, in East New Britain Province, PNG. “You could say my interest began on day one. I started out with the company in 2011 in charge of the

Sam Kiak Tubangliu (SKT) NGIP Agmark Limited makes a significant contribution to Papua New Guinea through its investment in the development and sustainability of cocoa and coffee industry sectors.

The cocoa and coffee industries provide the main source of economic activity and livelihood for many Papua New Guinean families.

At SKT, we are pleased to have provided independent auditing and review services to NGIP Agmark Limited and assisting it to continue to serve the people of Papua New Guinea.

www.skt.com.pg

NGIP AGMARK LTD FOOD & DRINK

Islands Petroleum Limited, value our business relationship with Agmark Group of Companies, and appreciate to be and to have been Agmark’s preferred supplier of fuel and lubricants for the last 20+ years.

Delivering Solutions

Islands Petroleum have also been proud to be a platinum sponsor of the Agmark Gurias Rugby League Team for 10 years.

Head office of Agmark and Islands Petroleum are located in a part of the world which is unique for its peaceful, tropical vibrancy and diverse environments, from active volcanoes, magnificent diving, luxuriant rainforest and pristine rivers and seas, that Is East New Britain Province in Papua New Guinea.

Islands Petroleum is the largest nationally and independently owned fuel and lubricants distributor in Papua New Guinea, and has been operational for more than 40 years.

Islands Petroleum is also the Authorised Mobil Lubricant Distributor for Papua New Guinea.

We specialise in bulk fuel and lubricant solutions for mining, commercial, industrial, marine, agriculture and retail.

With our head office based in Kokopo, East New Britain, Islands Petroleum has depots and branches in Rabaul, Kimbe, Kavieng, Alotau, Orobay, Popondetta, Lae, Madang, Port Moresby, Konebada and Mt Hagen.

We operate a fleet of bulk tankers and package trucks, in all our depots and branches, providing an exceptional delivery service for our customers.

When choosing Islands Petroleum to be a partner for your project, you can be assured that you are dealing with a company that prides itself on delivering quality product and service on time and to your satisfaction.

Delivering exceptional services to drive progress in our communities.

We are a leading Papua New Guinea (PNG) national firm working across a wide range of the industries and sectors of the PNG economy delivering: • • • •

Assurance & Advisory Taxation Compliance & Advisory Business Advisory & Statutory Compliance Cloud Accounting Solutions

At SKT, we believe it is important to contribute towards making a positive impact in our communities.

We work hard to understand the needs of our clients, build relationships and continually seek innovative, efficient and cost-effective ways to add value.

We are committed to leveraging the use of digital tools to bring proactive attention to each engagement and finding tailored solutions that solve problems.

2nd level, MRDC Haus Cnr Champion Parade and Musgrave Street Downtown, Port Moresby, Papua New Guinea P. O. Box 1593, Port Moresby National Capital District, Papua New Guinea +675 79998464 administration@skt.com.pg www.skt.com.pg

KEY CONTACTS Mr Arthur Sam, CPA, GAICD Managing Partner +675 79998464 Mr Antonio Bernabe, FCPA Principal – Business Advisory +675 79998464 Mr Gadoeno Gabi, CPA Director – Taxation +675 79998464 Mr. John Tubangliu Resident Partner – Kokopo +67572922317

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NGIP AGMARK LTD FOOD & DRINK

“We are in the process of getting Rainforest Alliance certification and with this bring in our farmers that are shareholders to also be under the brand”

transport and logistics division, Rabtrans. My qualifications as a heavy diesel mechanic were what brought me back to PNG, and from there I moved into other areas of the business and eventually into Operations Manager in 2018. In my role as Operations Manager, I was responsible for overseeing the dayto-day operations of our company, including production, logistics and human resources. My main focus was on ensuring that our products and services were delivered on time, to our standards, and to ensure the overall operations were running smoothly.”

In 2020, Nightingale was promoted to Chief Operating Officer and Director following the passing of his father and the company’s Managing Director, John Nightingale. As COO and Director, Nightingale is now responsible for all aspects of the business, from production and 6 | APAC Outlook issue 56

development to manufacturing and sales, as well as for ensuring that NGIP Agmark products meet the highest quality standards and that its customers are satisfied.

“I am proud to lead a team of dedicated professionals who are

committed to delivering the best possible products and services to our customers,” Nightingale continues.

“Cocoa has been in my blood since I was born, and I am also proud to be able to continue my family’s tradition of working in this industry.”

NGIP AGMARK LTD FOOD & DRINK

Security Assistance Services (PNG) Limited Providing Security Services to Papua New Guinea • • • • • • • • • • • • • • • • •

Static guards Armed response units Dog handlers Armed guards Close personal protection Cash-in-transit Mobile patrols Emergency response Home protection Secure transportation Monitoring and response Regional armed escorts Alarm and security systems Security consultancy Risk and threat assessments Investigations Real time intelligence collection through HUMINT and technical assets

www.saspng.com APAC OUTLOOK: CAN YOU TELL US HOW YOU SUPPORT YOUR STAFF? STEVEN NIGHTINGALE, COO: “Starting from myself down to my mangers, what we try to do with all our staff is build trust, ask for feedback, delegate tasks and responsibilities, provide support in work and personal life, provide growth and equal gender opportunities, and eliminate discrimination.

“We expect this mindset to continue down the line from management to the employees and farmers, and on top of this, we identify those employees with potential and look to promote from within rather than recruit from outside.”

A SUSTAINABLE FUTURE Moving forward, NGIP Agmark’s key priority is the growth of a number of company divisions and expanding its footprint in a couple of key locations throughout the country.

“We’re looking to establish a base in Lae where we can have all our divisions in the one building; it will become our second head office set up as such,” Nightingale continues.

“The cocoa industry in PNG is very different than that of the other producing countries in the world, it’s all customary land and each farming family works as much or as little as

they want on their own land. So, what we are doing is providing the training for farmers to better look after their crops, produce more and keep up the quality.

“We are in the process of getting Rainforest Alliance certification and with this bring in our farmers that are shareholders to also be under the brand. We are working with one of the bigger grinders in the world to partner with us on this, and we are also looking to convert our dryer from diesel to solar to reduce our impact on the environment. The only way anything can be sustainable is that it’s profitable for everyone.”

NGIP AGMARK LTD Tel: (675) 982 9055 enquiries@agmark.com.pg www.agmark.com.pg APAC Outlook issue 56 | 7

NGIP AGMARK LTD NGIP Agmark P O Box 1921 Rabaul, E.N.B.P, Papua New Guinea Tel: (675) 982 9055 enquiries@agmark.com.pg www.agmark.com.pg

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