PNG copra prices drop on euro woes

Business, Normal

The National, Thursday 6th September, 2012

PRICES of copra on the global market have dropped because of the ongoing economic crisis in Europe, according to Kokonas Indastri Koporesen (KIK) senior marketing officer Alan Aku.
He said this yesterday following concerns raised by local farmers about the very low copra price in the domestic market.
Aku said prices of most Papua New Guinea commodities were determined by the world market, and as a result, the country experienced price fluctuations over time.
“PNG exports most of its coconut oil to Europe,” he said.
“However, because of the economic crisis, Europe’s import of the country’s oil fell, resulting in the drop in copra price.”
Local farmer Pauline Banjua said from Madang yesterday she was selling her copra for 44 toea per kilo.
She said copra making required intensive labour and the drop in price was very discouraging to most farmers in the Sumkar and Bogia areas.
Aku confirmed the price of 44 toea in Madang and added that there was no competition, as one company had the monopoly.
Copra is priced in three categories: hot air (top grade), free merchantable standard (medium) and smoked.
Hot air prices for copra producing provinces per tonne stand as follows: East New Britain (K670), Buka (K650), New Ireland (K550), Madang (K520), and West New Britain (K480).