Production & Export Statistics

Production

Coffee production has increased on average by 3% per year from 650,000 bags since independence in 1975 to stabilize at 1.12 million bags in the last 10 years. However, in the last 10 years production has increased much slower by less than 0.8% with a significant drop in 2005/06 to 803,000 bags (Figure 1).

Figure 1: Coffee production from 1998-2007 (Source: CIC Ltd)

The Smallholder sector accounts for 85% of annual production while plantations and blocks
account for 10% and 5%, respectively. Managed sector has declined dramatically over thelast 10-15 years (Figure 2). The sector’s production peaked at over 300,000 bags in 1992 before commencing its decline. In 2005/06 the managed sector production stood at 135,451bags. In view of the declining importance of the managed sectors, the smallholder sector is the mainstay on the coffee industry in PNG.

Figure 2: PNG Coffee Production by Sector, 1998-2007 (Source: CIC Ltd)

Coffee is grown in 15 provinces, but production is centered mainly in Western Highlands,
Eastern Highlands, Morobe and Simbu Provinces. These provinces account for over
90% of production. East Sepik province supplies most of PNG’s Robusta exports, but
output has fallen drastically in the last five years due to the introduction of vanilla in the province.

Exports

PNG exports almost all (99.9%) of the coffee it produces in green bean; only 1% is exported in roast and ground form. The trend in exports therefore resembles that of production. Exports have averaged 1.12 million bags per year worth K350 million in the past 10 years (Figure 3).

Figure 3: PNG coffee exports, 1998-2007 (Source: CIC Ltd)

Major export grades continue to be Y-grade 52%, followed by Premium Smallholder Coffee (PSC) grade at 18%, X-grade 12% and A-grade 8% (Table 1). PSC grade was introduced recently and has fetched premium price of 50 toea per kilo over Y1 over the last five years. 

Germany buys most of PNG Y1 grade, while Australia and Japan buy the bulk of PSC and plantation grades. The USA is also a major buyer of A and X grades, but an increasing quantity of Y1 grade has also found buyers in that country. Germany, USA, Australia and Japan are the major buyers of PNG coffee accounting for over 85% of total exports (Table 1).

Table 1: Green bean exports by grade and destination in 2005/06 - 60 kg bags GBE (Source: CIC Ltd).

Country	Australia	Japan	USA	Germany	Others	Total
A	11,113	4,966	30,947	2,740	15,976	65,742
B	80	-	17,991	-	1,810	19,881
PB	230	20	4,592	300	150	5,292
C	160	-	-	10,935	1,505	12,600
X	7,475	2,732	57,583	16,289	12,425	96,504
PSC	86,613	21,321	13,290	4,100	36,378	161,702
Y1	40,329	58,237	54,913	351,591	56,215	561,285
Y2	1,265	-	300	1,800	-	3,365
Y3	20,943	-	3,662	17,785	2,824	45,214
ROB	1,637	-	602	-	1,519	3,758

 

Updated: May 17, 2010