Why PNG

Papua New Guinea’s Coffee is now amongst the most highly sought after due to its taste and
aftertaste and its natural, organic beans. The Instant Coffee Factory will
be the newest Instant Coffee Processing Factory in the Southern Hemisphere with state-of-
the-art technology and fully integrated staff amenities and commercial kitchen that will keep
the factory operating 24 hours per day, seven days a week and 334 days a year.
Coffee is the largest employer in the agriculture sector in PNG, accounting for approximately
50% of the population’s income stream.

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Coffee bean exports from Papua New Guinea have averaged over 1 million bags each year with
export earnings averaging K451 million each year over that period. Recently the volumes have
fallen by nearly 25% to 750,000 bags. The main export markets for PNG coffee are currently
Germany (51%), United States (17%), Australia (14%) and Japan (6%).

Many local farmers do not get good price for their coffee parchments as exporters buy them
from them at low prices and the smallholder farmers lack transport and direct market access.
Their parchments are small volumes thus it’s not economical to sometimes take it to the
townships to sell.

Downstream processing promotes local farmers to farm and increase yields and
support local products. This way they get the benefits directly, they get paid premium prices.
Currently Arabica coffee accounts for 95 per cent of beans produced in Papua New Guinea,
while only 5 per cent is Robusta coffee.
Successful implementation of the project will put PNG coffee industry on the instant coffee
processing countries map.

The project will have a major positive impact on the coffee growing communities – it will
consume 26% of the country’s current total green bean coffee export. In turn the farmers will
be directly paid for their coffee and will have their coffee prices locked in at better market
prices ensuring that they get support for better technical skill upgrading and husbandry
techniques for their aging coffee trees.

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