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Business |
Palm oil top agro commodity in ’06
By BAEAU TAI
PALM oil has emerged as the country’s leading agriculture
commodity last year.
In September quarter, it achieved significant export and
production figures.
In its Quarterly Economy Bulleting (QEB) for the quarter in
review, the Central Bank reported that the volume of oil palm
exported during the quarter was 93,300 tonnes, 68.4% up from
55,400 tonnes in the same quarter in 2005.
The increase was due to higher production following commencement
of harvests from new estates combined with increased shipments
from the major palm oil producing regions.
With a average export price of K1,135 per tonne during the
quarter, export receipts totalled K105.9 million, up 62.2% from
K65.3 million in the same quarter of 2005.
Palm oil exports overtook coffee for the first time in 2001 after
levels of coffee production started declining.
Palm oil is one of the country’s fastest-growing agricultural
exports, currently accounting for around a third of the total
value of the sector’s foreign sales and around 5% of all exports.
The total value of palm oil exports has more than doubled to over
K302 million since 1995, with the volume of palm oil exports up by
almost 80%. The European Union is Papua New Guinea’s sole export
market for palm oil, with the UK as the largest buyer.
There are four major oil palm projects in PNG located in the
provinces of West New Britain, Oro, Milne Bay and New Ireland.
The leading palm oil producer is locally-listed company New
Britain Palm Oil Ltd which produces approximately 200,000 tonnes
of crude palm oil per annum.
The cane estate and sugar milling operation Ramu Sugar has also
moved into oil palm production as part of its diversification
strategy.
The company, which supplies PNG’s domestic market and exports to
the US and Pacific islands, is planning for palm oil to eventually
account for more than 50% of its revenues by this year.
As for the other commodities, coffee’s export volume for the
September quarter was 17,600 tonnes worth K115.2 million, a
decline of 42.7% from 30,700 tonnes in the same quarter in 2005.
Volume of cocoa exports was 12,300 tonnes worth K59.1 million, a
decline of 1.6% from 12,500 tonnes, while copra export volume was
1,400 tonnes worth K0.8 million, a decline of 76.3% from 5,900
tonnes due to lower production and decline in exports from the
major copra producing regions.
 
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