K40m food plant boost

 LAE-based food manufacturer Prima Smallgoods has recently completed a K40 million (US$15.82 million) upgrade to its manufacturing facilities in Lae. 

General manager Adrian Chow told Business Advantage PNG the investment was made to take advantage of Papua New Guinea’s expected long-term economic development, with the manufacturer anticipating a surge in domestic demand for non-staple and value-added food options.

He said: “As disposable income increases, we expect people to have a greater demand for processed meat products.”

“That’s not to say that things are not already going strong for the fast-growing company, which has a 40-year history in Papua New Guinea.

“We believe that our new facility’s standards are better than some of the processing facilities in Australia. 

“So, our customers can no longer use quality as an excuse to buy from overseas suppliers,” Chow added.

The benefits of such a major private investment were also expected to flow through to the local piggeries and farms that formed part of Prima’s supply chain.

 “At the moment, we’re not exporting because we are trying to concentrate on the Papua New Guinea market, but there is a possibility in the future with this new plant,” Chow said.

He said the Solomon Islands offer a natural fit for Prima’s products. 

Its current customer base includes the catering providers for the country’s major resources projects, as well as a range of wholesalers and supermarkets, which supply Prima’s lower-priced saveloys and sausages to the mass-market.

The newly-upgraded manufacturing facility was opened last September.

It includes new processing equipment that can deliver consistently high-quality products and allows for comprehensive data collection. 

Chow said the new plant also created a much safer and pleasant working environment for the company’s 230 staff.