The coconut industry in Papua New Guinea (PNG) continues to undergo structural and policy changes to improve delivery of services to its growers and stakeholders. The Kokonas Indastri Koporesen (KIK) is taking the lead in these efforts by introducing a set of policy guidelines for coconut product buyers, processors and exporters to support the KIK Act 2002 and the KIK Regulations 2002 to make the Act and Regulations more responsive and effective in promoting the growth of the industry in the next 10 years. The KIK is also pursuing funding under the PNG National Agriculture development Plan to implement rehabilitation and development of coconuts areas.

Consistent with the theme of this 43rd COCOTECT Meeting – “Integrated Approach in the Processing of Coconut Products/by– products and Market Prospects”, this country paper describes the trends in processing of coconut products/by-products in PNG, demand prospects for coconut products in both domestic and global markets, current developments in technological developments and current issues in the PNG coconut industry. 

Specifically, this paper highlights the trends in the processing of coconut products/by products such as virgin coconut oil, coconut bio- fuel production and the establishment of a new coconut oil mill in PNG and its contribution to increased crushing of crude coconut oil in the past year. The relatively high coconut product prices; increased market access by growers and/or producers due to more buyers and traders entering the coconut products market has been a major boost for the coconut industry in PNG. Against this backdrop, the trends in demand for coconut products in the domestic and overseas markets for processed coconut products/by products are presented.

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. Downstream processing has been given top priority for the industry in the move towards more value addition for coconut growers. 

In terms of current issues, this paper presents an overview of the outbreak of two coconut diseases in the Madang Province –currently the second largest coconut-producing province in PNG. The current efforts to address these diseases and their implications are outlined.