PNG’s Cocoa Industry Sees Major Expansion as Queen Emma Factory Upgrades
EU and FAO Support Key to Scaling Up
Paradise Foods Limited, a Papua New Guinea-owned company, has completed a K18.6 million upgrade to its Queen Emma Chocolate Factory in Port Moresby, boosting monthly processing capacity from 10 to 200 tonnes. The project, funded by the European Union through the EU-STREIT PNG Programme and the Food and Agriculture Organisation (FAO), marks a significant step in PNG’s downstream-processing strategy, according to Prime Minister James Marape.
“This is a practical demonstration of the Government’s push for greater downstream processing,” Marape said, highlighting the 20-fold increase in capacity. The expansion, funded with K11.5 million from the EU and K7.1 million from Paradise Foods, aims to transform raw cocoa into finished chocolate products for global markets.
Farmer Income Potential with New Processing Hubs
The upgraded factory could generate over K43 million in annual income for more than 10,000 smallholder cocoa farming families across four provinces, according to news.pngfacts.com. Marape emphasized that local processing could increase cocoa’s value, with raw beans sold at K25 per kilogram potentially becoming high-value products like cocoa butter and chocolate worth K55–K60 per kilogram.
“If we support our growers at the production end and connect them efficiently to processors, we can ramp up production and earn much more for our country,” the Prime Minister said. The government plans to align freight and price-support policies to ensure farmers benefit directly from the factory’s growth.
Future Plans Include Lae Facility and Global Market Access
Paradise Foods is already planning a larger chocolate processing facility in Lae, with a proposed capacity of 1,000 tonnes per month. If realized, the project could generate K500 million in export revenue and open markets in Australia, Asia, Europe, and North America, according to news.pngfacts.com.
“This is the direction Papua New Guinea must take: grow it in PNG, process it in PNG, make it in PNG, and sell it to the world,” Marape stated. The Prime Minister also proposed partnerships with Nambawan Super to create savings models for farmers, ensuring they can build retirement income like other workers.
Global Partnerships Drive Quality and Sustainability
The EU’s Global Gateway strategy emphasizes improving cocoa quality and consistency to access premium European markets. Erica Hasznos, EU representative to PNG, noted that cooperation from planting material to processing “brings more value for PNG businesses and small farmers.”
Dr. Kachen Wongsathapornchai, head of the FAO country office in PNG, stressed that “quality becomes sustainable when the market pays for it.” The EU-STREIT PNG Programme has supported the entire cocoa value chain, from post-harvest handling in the Sepik to the new processing facility, ensuring better beans meet paying buyers.
FAQ: Key Details About PNG’s Cocoa Industry Expansion
How much will the factory increase processing capacity?
The Queen Emma Chocolate Factory’s capacity has increased 20-fold, from 10 to 200 tonnes per month, according to Paradise Foods and news.pngfacts.com.
What role do the EU and FAO play in this project?
The EU contributed K11.5 million through the EU-STREIT PNG Programme, while the FAO worked across the whole chain from planting material and post-harvest handling to processing capacity.
How will this benefit local farmers?
The expanded factory could generate K43 million annually for over 10,000 cocoa farming families. By processing cocoa locally, farmers may receive higher returns and access new markets, as outlined by Prime Minister Marape.
Did You Know?
The Queen Emma Chocolate Factory’s upgrade is part of a broader effort to reduce PNG’s reliance on raw commodity exports. By adding value domestically, the country aims to capture a larger share of the global chocolate market, which exceeds $100 billion annually.
Pro Tips for Understanding PNG’s Agricultural Future
Follow the EU-STREIT PNG Programme’s progress on the FAO’s website. Track Paradise Foods’ Lae facility plans through local business reports. Explore how Nambawan Super’s potential savings model could reshape rural economies.
Explore More
Learn how other Pacific nations are boosting agricultural exports here. Discover the EU’s Global Gateway strategy in PNG here.
Call to Action: What steps do you think PNG should take to ensure long-term success for its cocoa industry? Share your thoughts in the comments below.
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