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  • Publication | 2019
Cocoa value chain in Papua New Guinea
Global Food and Nutrition Security

As a whole, the cocoa VC in PNG is relatively simple and is characterized by two products (dry versus wet beans) and two export chains (bulk versus certified markets). The VC is almost entirely oriented to the export of low processed products. The small domestic market restricts the opportunities to add value by processing a primary product into a marketable product such as making chocolate for local sales.

The business-oriented model is promoted nowadays by the public authorities, PPAP and private companies. However, this model concerns only a small number of producers and has not enabled the total cocoa production to be boosted yet. Moreover, this model encourages households to specialise only in cocoa, which may be perceived as a risk for a large part of the rural population.

It is crucial to enlarge the perspectives of the business-oriented model to embrace a large number of producers in PNG with limited access to supports. Rather than just a “yield increase” of a single cash crop, a multi-crop cocoa-based agriculture favouring the integrated production of food and commercial products seems most suitable for a sustainable rural development in PNG. Special attention should be given to avoid deforestation, incentivising systems that limit area expansion.