Thursday, June 5, 2008
Papua New Guinea Agribusiness Investment Opportunities
Papua New Guinea is an investment destination that is increasingly gaining attention from those looking for business opportunities in Asia. Rich in resources specifically mining, fisheries and agriculture, the economy has been performing strongly mainly due to the high demand for commodities. One of the areas that does show potential is agriculture.
The driving force behind commercial agriculture in Papua New Guinea has always been the export crops namely coffee, cocoa, coconut (copra), oil palm and kernels. Other export commodities include tea, cardamom, rubber, chillies and pyrethrum as well as the great number of varieties of tropical fruits and vegetables. There is considerable potential for expansion and development of many more crops for export, including the export of fresh fruit and vegetables and processed or downstream products.
Specific investment opportunities dwell in coffee, oil palm, cocoa, coconut/copra and all spice crops. The government of PNG has made some special incentives for those interested in agribusiness projects with a special tax rate of 20 per cent for agribusiness projects and tax breaks.
One of the recent sucess stories is palm oil. Several key investors have developed projects in parts of PNG that have been well suited for palm oil. With significant land available for production and a high palm oil price, producers such as New Britain Palm Oil Limited have done well in PNG. The company is currently listed on the London Stock Exchange and it is PNG's largest palm oil producer.
Other significant investment opportunities remain in PNG, but agribusiness certainly is a promising sector for astute investors.
Labels: agribusiness, agriculture, business opportunities, investment, palm oil, papua new guinea investment, png, png investment
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