The country paper addresses the following issues: copra production in Papua New Guinea, production trends for high value coconut products, marketing of coconut products, coconut development strategies and global factors affecting the competitiveness of the coconut industry in PNG and the latest strategies being adopted by Kokonas Indastri Koporesen to rehabilitate the coconut industry in PNG.

The coconut industry in Papua New Guinea continues to undergo structural and policy changes to improve delivery of services to growers. The Kokonas Indastri Koporesen (KIK) is taking the lead by reviewing the KIK Act 2002 and the KIK Regulations 2002 to make the Act and regulations more effective in promoting the growth of the industry in the next 10 years.

Coconut research and development (R&D) undertaken by the Cocoa Coconut Institute of PNG includes: hybrid coconut breeding, coconut based farming systems, crop protection and downstream processing. The downstream processing has been identified as a top priority for the industry in the move towards value addition for coconut growers. In addition. KIK is now seriously investigating the following issues: coconut production factors; market research and product development; extension support; commercial interventions and also taking stock of the major development constraints and how to overcome them.

The major global factors affecting the competitiveness of the coconut industry in PNG include: firstly, establishment of niche markets for the high value coconut products such as virgin coconut oil in developed countries; secondly, domestic and export prices of coconut products influence the willingness of smallholders to cultivate coconuts and produce high value coconut products; thirdly, the consolidation and vertical integration among major international agri-food companies control almost every aspect of agricultural trade and commodity chains from the farm to the consumer in developing countries; and, lastly, the huge growing consumer bases in China and India affecting world commodities trade.

KIK is addressing the competitiveness of the coconut industry in PNG from both the domestic and global perspectives to ensure that smallholders receive increasing benefits from the production of high value products and innovative coconut based farming systems.