Palm nuts and kernels market in Papua New Guinea

Earlier Report Observations

From 2018 to 2020, production of palm nuts and kernels in Papua New Guinea increased from 2.65 million tonnes to 3.02 million tonnes. This growth was driven by the Oil Palm Industry Corporation's extension services to smallholders, which improved cultivation practices, and a steady rise in smallholder fruit output.

Production continued to expand, reaching 3.59 million tonnes by 2023. Government initiatives were key, including a formal target to double oil palm production by 2027 and the 2023 launch of the Medium Term Development Plan IV. Papua New Guinea's entry into the Council of Palm Oil Producing Countries the same year enhanced international cooperation and market access, supporting further growth.

In 2024, the government advanced major regulatory reforms, finalizing the National Oil Palm Policy 2024-2029 and introducing bills to establish the Oil Palm Industry Authority. This period also saw industry consolidation with Sime Darby Oils' application to acquire New Britain Palm Oil Limited's downstream business, reflecting ongoing investment and development aimed at structuring the market and empowering smallholders.

Production palm nuts and kernels in Papua New Guinea

In kind, 2017-2020, K t

From 2017 to 2020, Papua New Guinea held the 7th position globally in the production of palm nuts and kernels.

Top producers of palm nuts and kernels, 2017-2020

World map of production of palm nuts and kernels, 2017-2020

Papua New Guinea's production of palm nuts and kernels grew for the third year in a row. In 2020, the country produced 3 019 K t, marking a modest increase of 7.1% compared to 2019. Over the period from 2017 to 2020, production rose by 16.1%, which translates to an average annual growth rate of 5.1%.

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

Exports palm nuts and kernels from Papua New Guinea

Exports in kind, t

The data shows irregular fluctuations, reflecting a volatile market environment. Between 2017 and 2018, exports varied by a factor of 4.4 from peak to trough. In 2020, Papua New Guinea exported 614 t of palm nuts and kernels, a significant surge of 338.8% compared to 2019.

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

From 2017 to 2020, the export structure in kind was heavily concentrated, with Malaysia dominating the market, accounting for 99.7% of total flows.

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

In 2020, the value of palm nuts and kernels exported from Papua New Guinea totaled 73 K $ US, representing a year-on-year decline of 25.3%. Between 2017 and 2020, exports fell by 95.8%, averaging an annual decrease of 65.4%.

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

Over 2017–2020, the top buyers of palm nuts and kernels from Papua New Guinea in value terms were Indonesia (44.2% of exports), Malaysia (32.8%), and Sri Lanka (9.1%). Together, these three markets accounted for 86.0% of total export value.

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 nuts and kernels to Papua New Guinea

Imports in kind, t

The data indicates irregular shifts, pointing to a volatile market. Imports reached their lowest point in 2019 at 0.3 t and peaked in 2018 at 51 t, showing a 195-fold variation between these years. In 2020, Papua New Guinea imported 41 t of palm nuts and kernels, a sharp rise of 15,807.6% compared to the previous year. The largest decline occurred in 2019, with a drop of 99.5%.

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

During 2017–2020, imports in kind were led by two key markets: Malaysia and New Zealand, which together made up 86.5% of total flows, while the remainder was spread across other destinations.

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

World map of product's imports to Papua New Guinea in kind, 2017-2020

Imports in value, K $ US

The market exhibited volatility throughout the observed period. Imports hit their lowest in 2019 at 0.0 K $ US and their highest in 2018 at 106 K $ US, with a 2,181-fold change between these years. In 2020, Papua New Guinea imported 1 K $ US of palm nuts and kernels, a substantial increase of 1,633.1% compared to 2019. The most significant decline was in 2019, at 100.0%.

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

From 2017 to 2020, nearly all imports in value terms of palm nuts and kernels to Papua New Guinea were linked to Malaysia, which held a 99.5% share of total flows.

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

World map of product's imports to Papua New Guinea in value, 2017-2020