Papua New Guinea (PNG) marks 50 years of independence with slogans such as “Celebrate our history, inspire our future”, “Build a nation” proudly displayed across the country. Cooperatives, which were once thriving at the time of independence, have since witnessed a marked decline but remain a potential force to transform agriculture and the rural economy. ICA-AP Regional Director Mr. Balasubramanian Iyer, on his maiden visit to PNG, shares his experience in this article.

During my visit to Port Moresby, I had the opportunity to meet with officials and cooperators to better understand the state of cooperatives and the future that lies ahead. There is a growing recognition of the important role that cooperatives can play in national development and the need to create an enabling environment. At the same time, some initiatives give hope that in the next fifty years, cooperatives can indeed inspire and build the nation.

The roots of cooperatives in PNG trace back to the colonial period, when cooperatives were introduced to organize agricultural producers. They emerged to support rural livelihoods, collective bargaining, and to improve access to markets for small-scale farmers. The Cooperative Societies Ordinance of 1965 helped establish more than 500 societies in the 1950s–70s, engaged in cash crops, retail stores, and credit services. However, cooperatives declined after independence in 1975, when the ordinance was repealed. Many societies have transformed into companies or business groups. The legal basis for cooperatives was revived with the Cooperative Societies Act of 1982 (amended in 1985). Nevertheless, adequate attention and support were lacking, and cooperatives continued to struggle due to capacity gaps, weak institutional backing, and shifting policy priorities.

Today, seven or more adults over the age of eighteen can form a cooperative by registering with the Registrar of Cooperative Societies within the Department of Commerce & Industry (DCI). The Cooperative Societies Unit (CSU) under the DCI is responsible for registration and capacity building. In my meeting with Mr. David Ganaii, Secretary of the Ministry of Commerce and Industry, he emphasized that weak institutional capacity and limited enforcement have often constrained cooperative growth. He noted that cooperatives must move from being managed as a small unit office to an independent authority with the power to regulate and promote them effectively. Furthermore, the 1985 law urgently needs updating, and a national cooperative policy should be introduced to provide clear direction. Mr. Brian Waffi, the incumbent Registrar, echoed these concerns, stating that they have been working to revive and rejuvenate cooperatives despite limited resources.

At present, PNG has around 8,310 registered cooperatives with more than 355,656 individual members. These cooperatives operate mainly in agriculture, fisheries, livestock, credit, and multipurpose sectors. While many are concentrated in smallholder agriculture and organized around aggregating supply and accessing inputs and markets, they face persistent challenges. Land tenure disputes, farm sizes, lack of capital, limited extension services, and weak logistics infrastructure hinder growth. These hurdles mean that while cooperatives exist in large numbers, their potential impact remains underutilized. Certificates issued to cooperatives are often not recognized by commercial banks, which only recognize SME registration certificates. This has further marginalized cooperatives from accessing credit and financial services. While SMEs can register through an online portal, cooperatives must come to Port Moresby to register in person.

Agriculture and allied sectors continue to be the backbone of PNG’s economy, with about 85 percent of the population depending on it for their livelihoods. The sector contributes around 26 percent of GDP, more than 10 percent of exports, and accounts for 38.7 percent of total employment. The National Agriculture Sector Plan (NASP) 2024–2033 is the government’s roadmap to unlock PNG’s agricultural potential and empower its citizens. Prime Minister James Marape has tasked the agriculture sector to contribute to the economy and create one million jobs by 2033. Although cooperatives are mentioned in the plan, they require a strong advocate to ensure they are prioritized and integrated as key vehicles for implementation.

Encouragingly, new initiatives are emerging to fill this gap. Mr. Reuben Yapi, President of the newly established National Cooperatives Secretariat, has been leading efforts to create a cooperative-driven approach rather than waiting for government support. According to him, the Secretariat was established in response to the non-performance of the CSU and is to be registered under the cooperative society framework. Its goal is to serve as the voice of cooperatives and to coordinate their development across PNG’s four regions. Mr. Yapi emphasized that cooperatives could play a pivotal role in implementing the NASP by helping farmers move from subsistence to commercialization, thereby transforming livelihoods. He envisions farmers being recognized not merely as subsistence producers but as entrepreneurs, with cooperatives serving as the vehicle for their advancement.

Alongside this, private initiatives are also emerging. I met with Mr. Andrew Runawery, who runs SME Magazine and organizes the SME Awards. He has initiated the PNG Cooperatives Business Awards to celebrate and recognize the contributions of cooperatives to PNG’s economic and social development. This initiative is especially significant in 2025, designated by the United Nations as the International Year of Cooperatives. Such recognition platforms will go a long way in raising the profile of cooperatives and attracting new generations of members and leaders.

The picture shows my visit to the Mango Farming Cooperative Society, which is working to strengthen the role of youth in agriculture, equip members to serve as advocates for the farming industry, and ensure sustainable incomes through best farming practices. The coffee I received as a gift was from the Unen Chit Coffee Growers Cooperative in Morobe Province. The cooperative produces coffee organically, adheres strictly to Fairtrade standards, and successfully supplies both local and international markets.

PNG’s cooperative story is cyclical—strong origins, a post-independence decline, and now the intent of a revival. As the country looks ahead to its next fifty years, targeted governance support, financial linkages, and commodity-specific value chain development will be critical. With the right reforms and leadership, cooperatives can once again become institutions for inclusive and sustainable rural growth, building both livelihoods and the nation’s future.