Lae Biscuit to resume some production lines

By PETER ESILA
SOME manufacturing lines of Lae Biscuit Company will resume production next week, says chairman Ian Chow.
The company had to shut down for two weeks to clear stock which had been piling up because of low consumer spending power.
Chow said the shutdown was extended to next week, and advised customers to expect discounts on products.
He said people did not have money to spend – a reflection of the current state of the economy.
“Some (company) production lines will be next week,” he said.
“All manufacturers are now (offering discounts) to clear their stocks and consumers may benefit from reduced prices.
“Most of our leaders have never run a successful business that does not depend on the Government.
“Manufacturers have to plan a four to six-month supply chain to keep the factory going.
“We have to order containers, we have incoming containers, containers at the wharf, containers in the yard, containers going out and any problem in the supply chain affects the rest.”
Chow said many manufacturers hesitated to talk about their problems.
“But PNG is a small place and real data is obtained from businesses and their suppliers,” he said.
“We know each other’s business by simple investigation in the market place.
“If I am an employee, I would be hesitant to say business is not good because I may get terminated.”
He said all manufacturers faced an “overstock” situation.
“They will offer discounts to wholesalers and hopefully the discounts pass on to customers,” he said.
“How can the economy be tracking well when prices are up 50 per cent and wages remain static?
“The grassroots people have lost 50 per cent of disposable income because of inflationary pressures.
“Australia and rest of world are facing the same problem with increased energy and food prices.”