ABSTRACT
This chapter examines the marketing chain in coffee in colonial Papua New Guinea. It shows how the white planters established a cartel of exporters which gave them power over exchange of coffee in the colonial industry. The main destinations of New Guinea coffee were Brisbane, Sydney and Melbourne, and a small amount went to Europe. Foreigners and white planters also retained control over processing factories and thereby dominated the market structure at this pinch point. Smallholders were faced with the option of direct or indirect delivery of their cherry or parchment to the processing factory. Direct delivery was available to those who lived close to the processing factory. Control of processing and coffee buyers enhanced the white planters' control over smallholder coffee for they were able to make substantial profits from processing smallholder coffee. The internal grading system divides into two sections, grades for green beans at point of sale to the exporter and grades for the sale of parchment.
