Supplying customer requirements in the fresh produce chain in the Highlands of Papua New Guinea

Abstract

This research seeks to identify the desired requirements of buyers of fresh produce in the PNG Highlands, and to evaluate how prepared those supplying and procuring fresh produce for the current PNG markets are to meet likely future trends. A customer satisfaction framework was developed and results from interviews with sixty smallholders and seven marketers from two wards in the Eastern Highlands Province of PNG were analysed using a mixed method approach. Results show that formal markets are shifting towards more relationship type marketing arrangements with suppliers. Most formal markets prefer procuring fresh produce from marketers because they are able to meet their requirements. Even though marketers tried to ensure that they met their customers‘ requirements, they were not entirely satisfied with their overall relationships with most of the formal buyers. Supermarkets on the other hand, treated them fairly in their relationships and provided better options for marketers among the formal markets available to them. A major result of the changes in the procurement systems is the increasing vertical coordination in the fresh produce supply chain. In combination with fresh produce in rising demand and increasing quality demanded. This imposes new requirements on smallholders that must be addressed.