Palm-kernel oilcake market in Papua New Guinea

Earlier Report Observations

From 2018 to 2019, the market volume for palm-kernel oilcake in Papua New Guinea rose from 67 770 tons to 79 298 tons. This growth was supported by an increase in oil palm fruit production by smallholders, which supplied more raw material for processing, while the government's import substitution policy encouraged domestic use of by-products like oilcake for animal feed. The strategic shift of New Britain Palm Oil Limited (NBPOL) to focus on upstream operations also likely boosted output of palm-kernel residues. A sharp drop in exports—from 17 300 tons in 2018 to just 247 tons in 2019—meant more production stayed in the country, further lifting domestic availability.

Between 2020 and 2022, the market volume continued to climb, peaking at 96 657 tons in 2022. This expansion was fueled by value-addition initiatives, particularly processing by-products into animal feed, which raised domestic consumption. Government policies aimed at strengthening the oil palm sector and advancing sustainability, along with progress in implementing a new legislative framework, provided a supportive backdrop. Although smallholder productivity faced persistent challenges such as aging palms and inadequate extension services, the overall supply of oil palm fruit kept rising, supporting oilcake production.

In 2023, the market volume contracted to 92 893 tons, a decline of 3.9% from the previous year. Production also edged lower, indicating a moderation after several years of growth, though the market size remained well above the 2018 level.

Production palm-kernel oilcake in Papua New Guinea

In kind, 2017-2020, t

From 2017 to 2020, Papua New Guinea ranked 8th globally in palm-kernel oilcake production.

Top producers of palm-kernel oilcake, 2017-2020

World map of production of palm-kernel oilcake, 2017-2020

In 2020, Papua New Guinea produced 84 042 tonnes of palm-kernel oilcake, marking a 5.7% increase compared to the previous year. Production reached its lowest point in 2019 at 79 544 tonnes, while the peak was recorded in 2018 with 85 070 tonnes. The most significant drop occurred in 2019, when production fell by 6.5%.

Annual dynamics of production in Papua New Guinea in kind, 2017-2020, t

Exports palm-kernel oilcake from Papua New Guinea

Exports in kind, t

The market showed an unstable trend over this period. Exports peaked in 2018 at 17 300 tonnes but dropped sharply to their lowest level in 2020, with a 173-fold difference between these years. In 2020, Papua New Guinea exported 100 tonnes of palm-kernel oilcake, a 59.4% decrease year-over-year. The largest decline was recorded in 2019 at 98.6%, while the biggest increase occurred in 2018, rising by 34.3%.

Annual dynamics of product's exports from Papua New Guinea in kind, 2017-2020, t

Between 2017 and 2020, Australia accounted for 82.8% of Papua New Guinea's total palm-kernel oilcake exports by volume, with the remaining flows distributed among several smaller trading partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Papua New Guinea in kind, 2017-2020

Exports in value, K $ US

Market performance experienced noticeable fluctuations during this timeframe. Export values reached their highest point in 2018 at 2 017 thousand US dollars, then fell to a minimum in 2020, showing a 138-fold shift. In 2020, Papua New Guinea exported 15 thousand US dollars worth of palm-kernel oilcake, reflecting a steep 95.2% decline compared to the previous year. The largest increase was recorded in 2018, with a rise of 63.1%.

Annual dynamics of product's exports from Papua New Guinea in value, 2017-2020, K $ US

From 2017 to 2020, Australia dominated Papua New Guinea's palm-kernel oilcake export structure in value terms, holding a 75.9% share of total flows, while other markets played a less significant role.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Papua New Guinea in value, 2017-2020

Imports palm-kernel oilcake to Papua New Guinea

According to industry reports, Papua New Guinea did not import any palm-kernel oilcake between 2017 and 2020.