Recently, the Prime Minister of the Pacific island nation of Papua New Guinea announced his cabinet, and the most controversial of these was the new post, which included a coffee minister. Is papua new guinea, which wants to prosper on the coffee industry, feasible?
Although coffee has become one of the world's three major drinks, not everyone can make a lot of money in this industrial chain. According to the data, "the overall concentration of downstream circulation links is high, and the value contribution accounts for 93% of the entire industrial chain, which belongs to the high profit zone; The upstream planting link is characterized by low concentration, the participants are mainly small and medium-sized coffee farmers, planting bases and high-quality estates abroad, and the value contribution accounts for 1% of the entire industrial chain, which belongs to the low-profit area. ”
Tropical Papua New Guinea has a humid and rainy climate, rich in crops such as coconuts and coffee, and the coffee industry is the country's second largest agricultural product after palm oil. Coffee production here is dominated by small, village-based farmers, whose production accounts for nearly 85 per cent of the country's annual production, which means that while smallholder farmers in Papua New Guinea have a wealth of traditional knowledge of growing coffee, the lack of systematic knowledge of coffee also prevents the region's coffee from taking a boutique route, posing a challenge to local smallholder farmers if they want to go out to truly lucrative areas.
At present, the instant coffee on the market has basically formed a definite pattern and monopoly trend, and the audience in the field of professional cafes is also limited, only the mid-end specialty coffee market is in an unsaturated state and has great growth potential. In the Case of the Chinese market, since the rise of the third wave of coffee around 2003, the price sensitivity of coffee lovers has been greatly reduced. Even if Starbucks still occupies a leading position in the industry, it does not prevent other specialty coffee brands such as Blue Bottle Coffee, Philz Coffee and other representative companies from appearing and sharing a piece of the market.
For this small island nation that wants to make a fortune from the coffee industry, how exporters are responsible for improving training programs on planting and processing techniques and certification standards for smallholder farmers to cope with the requirements of the mid-to-high-end market is probably the most important thing. After all, this fundamentally determines the unit price of coffee, and also determines the market range that Papua New Guinea can eventually expand.