Dry Bean Cocoa Production in Papua New Guinea: Do IPDM Inputs Pay Off?

Abstract

Cocoa is Papua New Guineaʼs (PNG) third-largest agricultural export, supporting about two million smallholder farmers. Despite integrated pest and disease management (IPDM) systems to improve yields, adoption remains low. We surveyed two cocoa-growing households—one near Balima (Madang Province) and the other near Manetai (Bougainville)—and combined these data with expert knowledge and published data to model revenue, labour, and capital inputs for dry bean cocoa production under different IPDM input levels, assessing financial viability. Results show profitability depends on unpaid labour; monetising labour costs eliminates or reduces returns. When labour is not paid in cash—as is common in Indigenous exchange economies in PNG—the increased cost and effort required for dry bean production is justified by potential returns. Excluding labour costs significantly improves benefit cost ratios, peaking at medium IPDM input levels. While higher IPDM inputs increase long-term returns, they reduce short-term profitability. Finally, potential hourly net incomes remain below PNGʼs minimum wage, raising sustainability concerns. Policy priorities include raising farmgate prices and access to fermentaries and dryers.