Papua New Guinea is looking at maximizing its potential in establishing and commercializing a Kava Industry in the country.
The idea birthed out of a conversation during the 14th World Indigenous Business Forum held in Port Moresby. Where International Trade and Investment Minister, Richard Maru, learned from indigenous Fijian business owners that the demand for Kava had outgrown the supply.
Maru said the cultivation and sale of kava both in domestic markets and as a processed export product is an important source of income for thousands of smallholder farmers and their families across the Pacific.
“Because of its associated relaxing benefits and the removal of trade restrictions in many countries. The demand for kava has increased and thousands of smallholder farmers across the region are now engaged in kava production,” said Maru.
Maru said Kava has become one of the main sources of economic importance to many Pacific Island countries and as a significant contributor to GDP, foreign exchange earnings, and balance of payments through exports for some countries.
“In 2020, Fijian kava exports were worth over A$43.6 million and in 2019, Vanuatu’s kava exports were worth A$48.4 million, with these figures set to grow in coming years.
“While some of these exports are to other Pacific Island Countries, larger markets include New Zealand, New Caledonia, Europe, and the United States, partly due to the large Pacific Island communities living there.
“The bulk of this trade is associated with selling kava as a beverage.
“With a growing quantity being exported as an ingredient, for nutraceutical and pharmaceutical products,” said Maru.
The growing popularity and demand for kava in Papua New Guinea is due to more Fijians travelling into Papua New Guinea, for work or visiting families and more Papua New Guineans trying out Kava.
“Papua New Guinea has the potential to become the biggest producer of kava in the world.
“If we establish kava as an industry and undertake multi-cropping with kava being planted under the cocoa trees to fully utilize the land. So our farmers can make money from both cocoa and kava using the same land. This is one industry that is ready to boom,” Maru added.
