Food and beverage to Papua New Guinea

Trends and opportunities

The market

The value of Australia’s food and beverage exports to Papua New Guinea were estimated at A$100 million in 2004–05.

Papua New Guinea has an estimated population of 5.5 million people of which 15 per cent of the population dwell in urban areas throughout the 19 provincial centres. It is the primarily the urban population, especially the expatriate community, that is the market for imported food and beverages.

The majority of the remaining 85 per cent of the population derive their livelihood through subsistent and small cash crop farming and have very little influence on the import of fresh food, processed food, and beverage products.

Opportunities

The major opportunities for Australian exporters in Papua New Guinea's food and beverage industry include:

• Fresh fruit and vegetables – stone fruit, deciduous fruits, exotic vegetables, salad greens
• Dairy products – fresh milk, cheese, butter, ice cream
• Meat – beef and lamb cuts
• Beverages – wines, fruit juice, flavoured milk, sports and health drinks
• Ethnic food – Asian, Indian, Italian and Mexican
• Grocery products – pasta, breakfast cereal, snacks, condiments
• Frozen foods – vegetables, pizza, pastry
• Gourmet foods – salamis, flavoured cheese, dips and pates
• Food ingredients for the manufacturing sector in Papua New Guinea

Competitive environment

There has been an increase in food and beverage imports from Asia. This is due to an increase in the Asian community in Papua New Guinea and that members of that community are developing businesses. 

There is consumer demand for an increasing variety of food types. This is consistent with trends in the region.

Tariffs, regulations and customs

Papua New Guinea has a single rate value added tax (VAT) of 10 per cent. The VAT is collected as part of the normal procedure at the point of entry. The customs valuation is calculated according to the cost, insurance and freight (CIF) value of the imported goods and the VAT is also charged on any customs or excise duty paid.

Papua New Guinea has undertaken a process of steady reduction in tariff rates since 1997.

As of January 2006 the tariff rate regime is:

• 0 per cent for goods if Papua New Guinea doesn’t produce that product  
• 15 per cent goods used as inputs to businesses
• 25 per cent for final goods competing with Papua New Guinea production  
• 40 per cent for goods, competing with Papua New Guinea production and designated as in need special protection

Specific duties, expressed in Kina per measure, are levied on beer, matches, and poultry meat, eggs and tobacco products.

Papua New Guinea Customs use the single column based on the Harmonised system. Most duties are applied ad valorem using the World Trade Organisation (WTO) valuation code guidelines of CIF value (as per Incoterms 1990)

Exporters should ascertain the duty rate that applies to its products, before export. Austrade can assist with this process.

Samples of no commercial value are admitted duty-free although sales tax may still be levied. Valuable samples are admitted, subject to invoice declaration, under a deposit or bond equivalent to normal duty. The deposit is refunded on re-export of the samples.

Industry standards

Regulations for food labelling are similar to Australia. Exporters are advised to apply Australian standards for packing and packaging. The product content details and manufacturer details must be in English.

Marketing your products and services

Market entry

It is important to establish that products are suitable for the Papua New Guinea market, taking into account that it is a relatively unsophisticated, price-driven market. 

Exporters must be prepared to supply minimum volumes, in most cases less than container load (LCL), often using consolidators. Although volumes may be low, frequency of orders may be more regular.

Exporters are encouraged to fund marketing activities, including media advertising, point-of-sale material and promotional incentives. Supermarkets advertise in the two daily newspapers but not as frequently as in Australia.

There are no trade fairs for the food and beverage industry in Papua New Guinea, although some businesses do conduct in-store promotions and external promotions: for instance, Holiday Inn hosts a monthly wine club dinner; the food prepared using imported produce used and served with a selection of imported wines.

Distribution channels

Australian producers and manufacturers can distribute products to Papua New Guinea using either Australian-based wholesalers/agents or retailers/wholesalers and agents based in Papua New Guinea.

Austrade Port Moresby can assist new exporters identify the most effective distribution chain for entry of their product into the Papua New Guinea market.

Many of the major retailers in Papua New Guinea are involved in an array of categories that are not usual in the Australian market: for instance, hardware and groceries. The major food and beverage retailers in Papua New Guinea include:

• Steamships Ltd
• Brian Bell
• Seeto Kui
• Andersons Foodland
• City Pharmacies
• Papindo Trading

Transport

Despite the close proximity of Australia and Papua New Guinea, freight charges tend to be relatively high due to the fact that ships returning from Papua New Guinea to Australia return virtually empty.

Transit time can vary significantly from a few days to weeks. Rapid delivery of shipping documents is essential as wharf storage dues are levied four days after the discharge of cargo. This is strictly enforced.

All goods must be air or sea freighted for the most part and consolidators are frequently used as consignments are often requested as a size or quantity that can fit on to a small truck or the back of a utility vehicle.

Physical distribution within Papua New Guinea can be complex due to:

• Geographic fragmentation
• Small market centres
• Contrasting demographic centres
• Lack of an extensive transport network

For these reasons, most goods are air or sea freighted. Air courier services are the faster means of means of delivery.

Qantas and Air Niugini service the international passenger and cargo market.

Links and industry contacts

Food and beverage-related resources

National Agriculture Quarantine and Inspection Authority (NAQIA)
PO Box 741
Port Moresby NCD
Papua New Guinea
Tel: (675) 311 2113 or 311 2114
Fax: (675) 325 1673

Manufactures Council of PNG
PO Box 598
Port Moresby NCD
Papua New Guinea
Tel: (675) 325 9512
Fax: (675) 323 0199

Importers (traders/wholesalers/retailers)

Associated Distributors
PO Box 1
Port Moresby NCD
Papua New Guinea
Tel: (675) 326 1243
Fax: (675) 326 1612

Collins & Leahy Merchandising
PO Box 4019
Lae Morobe Province
Papua New Guinea
Tel: (675) 472 4666
Fax: (675) 472 5194

Andersons Foodland
PO Box 3055
Boroko NCD
Papua New Guinea
Tel: (675) 321 1111
Fax: (675) 321 1144

Seeto Kui (Holdings) Pty Ltd
PO Box 456
Lae Morobe Province
Papua New Guinea
Tel: (675) 472 1111
Fax: (675) 472 1335 or 472 6408

Garamut Enterprises Pty Ltd
PO Box 96
Wewak Sepik Province
Papua New Guinea
Tel: (675) 856 2106
Fax: (675) 856 2324

City Pharmacies Ltd
PO Box 1663
Port Moresby NCD
Papua New Guinea
Tel: (675) 325 9044
Fax: (675) 325 0942

Caterers

P & O Catering & Services
PO Box 459
Port Moresby NCD
Papua New Guinea
Tel: (675) 320 1100
Fax: (675) 320 1007

Crocodile Catering
PO Box 371
Badili NCD
Papua New Guinea
Tel: (675) 320 1476
Fax: (675) 320 1476

Government, business and trade resources for Papua New Guinea

Investment Promotion Authority – www.ipa.gov.pg
Nationwide PNG Pages – www.nationwidepngpages.com  
PNG Directory – www.pngdirectory.com 
Papua New Guinea Business Resources Directory – www.apngbc.org.au

Australia PNG Business Council – www.apngbc.org.au
PO Box 3383
Weston ACT 2611
Australia
Tel: (02) 6231 9399
Fax: (02) 6231 9403

Department of Trade and Industry
PO Box 375
Waigani NCD
Papua New Guinea
Tel: (675) 323 1179 or 325 5816
Fax: (675) 323 1109 or 325 6108

Papua New Guinea Internal Revenue Commission
PO Box 777
Port Moresby NCD
Papua New Guinea
Tel: (675) 322 6600
Fax: (675) 321 4249

National Institute of Standards and Industrial Technology
PO Box 3042
Boroko NCD
Papua New Guinea
Tel: (675) 323 5339
Fax: (675) 325 6793

Department of Labour & Employment
PO Box 5644
Boroko NCD
Tel: (675) 321 7408
Fax: (675) 320 1062

Service providers:

Financial

Export Finance Insurance Corporation – www.efic.gov.au

Touche Tohmatsu – www.deloitte.com.pg 
PO Box 1275
Port Moresby NCD
Papua New Guinea
Tel: (675) 308 7000
Fax: (675) 308 7001

Frank J de Graaf
PO Box 5999
Boroko NCD
Papua New Guinea
Tel: (675) 325 6366
Fax: (675) 325 0984

KPMG
PO Box 507
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 2022
Fax: (675) 321 2780

Michael Mayberry Chartered Accountant
PO Box 1988
Port Moresby NCD
Papua New Guinea
Tel: (675) 320 1988
Fax: (675) 320 1989

PricewaterhouseCoopers – www.pwcglobal.com 
PO Box 484
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 1500
Fax: (675) 321 1428

Sinton Spence
PO Box 6861
Boroko NCD
Papua New Guinea
Tel: (675) 325 7611
Fax: (675) 325 9389

Smiths
PO Box 487
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 7099
Fax: (675) 321 7183

Legal

Allens Arthur Robinson Lawyers – www.aar.com.au 
PO Box 1178
Port Moresby NCD
Papua New Guinea
Tel: (675) 320 2000
Fax: (675) 320 0588

Blake Dawson Waldron Lawyers – www.bdw.com.au 
PO Box 850
Port Moresby NCD
Papua New Guinea
Tel: (675) 309 2000
Fax: (675) 309 2099

Gadens Lawyers – www.gadens.com.pg 
PO Box 1042
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 1033
Fax: (675) 321 1885

Norton White Lawyers and Notaries
PO Box 21
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 1788
Fax: (675) 321 2195

Pacific Legal Group
PO Box 904
Port Moresby NCD
Papua New Guinea
Tel: (675) 321 7477
Fax: (675) 321 3491

Warner Shand Lawyers
PO Box 1817
Port Moresby NCD
Papua New Guinea
Tel: (675) 325 4422
Fax: (675) 325 0682

Logistics

Qantas – www.qantas.com.au/freight/dyn/contacts/australasia
Papua New Guinea Online – www.niugini.com
Commercial forum – www.pngtradepost.com.pg 
Air Niugini – www.airniugini.com.pg  (the national airline)

Media

Post-Courier Online – www.postcourier.com.pg
The National Online – www.thenational.com.pg
The Independent – www.niugini.com/independent 

Australian resources

Australian High Commission
Godwit Road
(Locked Bag 129)
Waigani NCD
Port Moresby
Papua New Guinea
Tel: (675) 325 9333
Fax: (675) 325 9183

Operating hours:
Monday to Friday, 7.45am-4.15pm

Department of Foreign Affairs
PO Box 422
Waigani, NCD
Papua New Guinea
Tel: (675) 301 4121 or (675) 301 4122
Fax: (675) 325 4886

Papua New Guinea High Commission
39-41 Forster Crescent
Yarralumla ACT 2600
PO Box E432 Kingston ACT 2604
Tel: (02) 6273 3322 
Fax: (02) 6273 3732

South Pacific Trade Commission
Level 30, 133 Castlereagh Street
Sydney NSW 2000
Tel:  (02) 9283 5933
Fax: (02)  9283 5948

Contact details

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

(Last updated: 13 Jul 2007)