Lack of raw materials forces firms to import

The lack of raw ingredients in PNG is forcing manufacturing companies to import raw goods to produce locally made food and beverages.

Vitis Industries Limited managing director, Sergei Mossin, told Loop PNG that the company is forced to import ingredients from overseas due to the lack of locally grown ingredients.

Mossin said locally grown ingredients would significantly reduce their production costs and would see the price of their merchandise drop dramatically.

One of their products, Mossin Beer, relies heavily on raw ingredients, most of which come from overseas.

“Our beer we produce in such ways it’s like premium beer, (and) it’s possible to export to create additional revenue.

“But again, because there is no raw material industry in Papua New Guinea, therefore we are forced to import everything from overseas to produce beer,” said Mossin.

He said looking for suitable agricultural land, mainly outside of Port Moresby, has been problematic.

Mossin stated that if they could find land to produce local ingredients, this would reduce the cost of imports as well as prices.

Author: 
Cedric Patjole