Cocoa industry needs intervention

Editorial

PAPUA New Guinea produces some of the best cocoa beans in the world, and with support and expertise on proper farming techniques right up to processing, cocoa products can be the best globally.
At the moment, PNG contributes less than two per cent to the world cocoa market it has established an international reputation for quality, attracting 90 per cent of a premium for fine and flavour cocoa.
Just this week, a new agreement was signed between the Australian-funded Market Development Facility and Paradise Foods Ltd that will see a boost in locally-manufactured cocoa products.
The partnership will improve Paradise Foods Ltd’s production capacity to produce a new range of processed alkalised cocoa products, giving it a darker colour and smoother flavour.
The facility will support the Queen Emma Chocolate Company (Queen Emma), a subsidiary of Paradise Foods Ltd, with expansion of its processing facility through procurement and installation of cocoa processing equipment that would be used in the set-up of the improved cocoa production line.
Over the years, cocoa production averaged 43,867 tons with 90 per cent of these being produced by village farmers while 10 per cent from the plantation sector.
PNG’s cocoa industry has been in decline since the serious outbreak of Cocoa Pod Borer (CPB) from 2008. Cocoa exports fell from 52,579 tonnes in 2008 to 33,090 tonnes in 2015. Cocoa bean production reached 38,000 tonnes in 2017. Production has now increased to over 40,000 tonnes.
Cocoa is farmed across the country, having a presence in 14 out of 22 provinces.
At least 150,000 families rely on cocoa farming for their livelihood, and the economic contribution was estimated as K300 million (about US$88 million).
On a global scale, cocoa production in PNG was not significant – Côte d’Ivoire, for example, produced about two million tonnes in 2017.
Despite this, PNG has a global reputation of producing some of the highest quality cocoa in the world.
Currently, most of the country’s cocoa exports are to the Asia region, however, initiatives to develop speciality markets have been recently introduced.
While European and United States markets are responsible for the highest consumption volumes of cocoa respectively, growth in cocoa consumption is being driven by emerging markets such as Brazil, China, and India.
With upcoming demand expected to exceed supply according to the International Cocoa Organisation (ICCO), the future for PNG cocoa looks promising.
Prospects for growth in the global market for cocoa are looking bright.
PNG had huge potential to grow cocoa, it has huge land mass and fertile land.
PNG is the second largest cocoa producer in Asia after Indonesia.
In long-term view, PNG cocoa beans have lots of potential to supply good-quality fermented beans in Asia. Maprik MP John Simon last year announced his district plan to plant around 2.2 million seedlings a year between his economic zones.
And they stand to earn about K150 million annually.
There are plans also in other district and provinces to tap into this.
And that is why the cocoa industry needs major interventions from the government in order to facilitate new planting materials and low interest long-term agriculture loans.
Only then can districts such as Maprik and others with cocoa extension programmes become a reality with good quality cocoa and in quantity.
PNG now needs to tap into and translate this high-quality cocoa reputation to more money in the pockets of our cocoa farmers who live in the rural areas.