Addendum 61: Copra

Additional information

The PNG Department of Agriculture and Livestock at www.agriculture.gov.pg/coconut/ states that the “coconut industry is the oldest agricultural industry in PNG and has played a significant economic and development role since the 1940s. However, the industry over decades has declined in its status and is now the fourth major commodity after oil palm, coffee, and cocoa in terms of their contributions to the GDP of PNG.

German settlers arrived in eastern New Guinea in 1884 and they planted Coconut palms for the production of copra. Coconut plantations were established by both Germans and Australians.

By the 1980s, copra production in New Guinea was dominated by two Australian trading companies Burns Philp, and WR Carpeneter & Co. Today the Madang mill is operated by the Australian company Coconut Oil Production Madang Ltd (owned by Donald Brownlie Fleming) purchased for K7.8 million (US$2.4 million) and the country’s only other coconut mill is located in Rabaul and is owned by the Carpenter Group.

The industry provides employment for 309,417 households (2000 National Population Census), representing 31% of total households in PNG. It is estimated that over two million people are involved either directly or indirectly in coconut cultivation, production and consumption in PNG.

Papua New Guinea exports copra to such countries as Australia, US, Canada, India, Bangladesh, Indonesia, Philippines, Malaysia and New Zealand. Wikipedia at en.wikipedia.org/wiki/Copra states that in 2017 the value of global exports of copra was $145-146 million. Papua New Guinea has ranked between the largest and third largest copra exporter in the world with around 35% of the global total, followed by Indonesia, Solomon Islands, and Vanuatu. 

In 1985 the PNG government established the Copra Marketing Board to take over copra production in PNG. The Board saw the virtual decimation of the copra industry in PNG in the late 1980’s due to the popularity of soy beans. Copra exports fell to negligible levels by 2004. According to the PNG Central Bank PNG’s copra exports in 2003 were 3,600 tons, levels at which copra exports could be said to be close to extinction. Exports rose to more than 9,100 tons in 2004.

In 2018 Papua New Guinea sold 74,302 tonnes of copra netting the nation US$47.55m for the year 2018.  

The main commercial product from the coconut palm produced by rural farmers is copra,” (the dried flesh). “However, the price of copra is low compared to other agriculture commodities such as cocoa and coffee. And for those in the remote islands of the major coconut producing provinces in PNG, rising transport costs to markets have further eroded farm-gate prices, and their economic survival is a matter of great concern.”

It was quoted in the 20 June, 2019 article “A Cocoa and Coconut Plantation in Papua New Guinea” on The Mission Post website at stories.svdmissions.org/the-mission-post/a-cocoa-and-coconut-plantation-in-papua-new-guineaa by Dale Kueter that a mission in Madang was “receiving $150 for a bag of copra weighing approximately 136 pounds”.

To make copra, coconut nuts are broken open, water is drained out, and the kernel is left to dry. Coconut water and coconut milk are consumed as part of the staple diet of locals. In recent years, packaged coconut water has become a lucrative industry, competing against carbonated drinks. Coconut oil is used in baking and cooking and is an edible fat comparable to butter or margarine. It is also used in beauty products like soap for its moisture and texture. The oil extracted from copra is rich in lauric acid, making it an important commodity in the preparation of lauryl alcohol, soaps, fatty acids, and cosmetics. Coconut cake produced by making copra is used as livestock food. Coconut scent is used in products such as candles and soaps. The hard shells, fibrous husks and leaves can be used by locals as building materials and as decorations.

Copra is highly susceptible to the growth of moulds and their production of aflatoxins if not dried properly. Aflatoxins can be highly toxic, and are among the most potent known natural carcinogens, particularly affecting the liver. Previously in PNG there has been a problem with an outbreak of the Bogia Coconut Syndrome.