User:Scarletpimpernels/COPM

Coconut Oil Production Manang Ltd

Importance of Agriculture to Papua New Guinea
The driving force behind commercial agriculture in Papua New Guinea has always been the export crops. This trend will no doubt continue to dominate the development of the sector in the future.

In 2010, more than 90 per cent of the value of agriculture export comes from four crops - coffee, cocoa, oil palm and kernels, and coconuts (copra). Other export commodities include tea, cardamom, rubber, chillies and pyrethrum.

Early History of Copra Production in PNG
In the early days of Copra plantations in New Guinea, Copra was the biggest export revenue earner in PNG which supported business empires such as Burns Philp and Steamships and built the fortunes for many entrepreneurs. Villagers also relied on copra for income and vessels used to visit the islands and the coastlines buying copra and supplying trade goods to the remote areas. In 1914, During WW I, Queensland (at that time independant but now a part of Australia) sent a small military force and captured the towns of Kokopo and Rabaul. Ex military personnel who fought in WWI were offered PNG land at half the cost with loans that could last twice as long with only 20% down-payment. Most of these plantations were Copra producers managed by two major entities. All production ceased during WWII and the Australian Government compensated land owners with cash and further improved repayment terms. The price of Copra continued to decline and the most significant holdings were sold out.

More recent history and COPM
In 1985 the Copra Marketing Board, an initiative by the PNG government took over copra production. In 1993 Kokonas Industri Koporasen (KIK) built a copra mill in Manang and effectively gained monopoly control over the marketing. The ill-fated operations of the Copra Marketing Board virtually decimated copra production with copra exports from PNG falling to negligible levels up until 2004. In 2003 the government ended KIK’s monopoly powers over marketing, and a year later KIK suffered losses that forced the group to call in a liquidator.

In a joint announcement in April 2004 the liquidator of PNG Coconut Commodities, Rex Paki, Coconut Oil Production Madang Ltd (COPM) and the original mill owners, KIK, announced that COPM had taken possession of the mill.

The COPRA MILL in Madang CHANGED HANDS IN a K7.8 million (US$2.4 MILLION) DEAL by the Australian-owned Coconut Oil Production Madang Ltd (COPM). This gave long-suffering copra growers their best news in many years.

COPM immediately raised the price of first grade copra by K100 to K725 (US$223) a ton.

The country’s only other coconut mill being owned by the Carpenter Group located in Rabaul.

This was an excellent outcome for everybody involved in the copra industry in PNG, in particular for the local growers and local people who relied upon income from copra.

According to the Central Bank the PNG’s copra exports in 2003 had plunged to 3,600 tons in that year, levels at which copra exports could be said to be close to extinction, in contrast to exports of more than 9,100 tons by the end of 2004.

New owners for COPM
In 2006 COPM Sold its interests to MRPS Services, a New Zealand firm. Copra trade continues to flourish in the coastal islands around Madang and the neighbouring provinces of Papua New Guinea.

A further revival of the copra trade was been made possible by the introduction of two copra barges by the coconut oil exporter COPM.

The vessels, MV Coconut Trader and MV Copra Trader, are plying the coastal areas and outer islands of Madang and neighboring provinces to buy copra for the mill.

COPM Logistic Manager Daniel Katie said in 2007 that the company is paying up to K3.5 million (US$1.3m) a month to copra producers within the province.

The copra trade has been helped by high copra prices on the world market. In 2007 the prices were for Hot Air—K1,400 per tone; FMS—K1,300; and smoked—K1,300.

The mill is currently exporting coconut oil to European markets and copra meal to Australia. Five percent of the meal is sold locally.

The PNG Copra Producing Co-operative, Madang Co-operative Societies Association, are now seeking for the government to honour a commitment to purchase the mill which is now up for sale.