Minister for International Trade and Investment, Richard Maru has urged Papua New Guinea to capitalize on the burgeoning global demand for kava by establishing a thriving kava industry.
His call comes in the wake of a revelation from two Fijians who recently attended the 14th World Indigenous Business Forum in Port Moresby, where they highlighted the growing demand for kava in the Pacific region, surpassing its supply.
Kava, traditionally consumed as a beverage, has evolved into a source of livelihood for thousands of smallholder farmers and a lucrative business, particularly in the pharmaceutical and social sectors.
It's renowned for its medicinal properties, including its relaxing effects, and the removal of trade restrictions in many countries has propelled its demand, benefiting numerous smallholder farmers across the Pacific.
A recent report by the Pacific Horticultural & Agricultural Market Access Program (PHAMA) indicates that in Fiji, approximately 1 in 8 rural households engage in kava cultivation, with an additional 3,000 households involved in kava trade and retail. In Vanuatu, around 30,000 households cultivate kava, with 3,000 more participating in the kava trade.
In 2020, Fijian kava exports exceeded A$43.6 million (around PGK106, 938,139.30), while Vanuatu's exports in 2019 reached A$48.4 million (around PGK118, 711,145.46), with projections of further growth. Major export destinations include New Zealand, New Caledonia, Europe, and the United States.
Notably, kava is increasingly utilized as an ingredient in nutraceutical and pharmaceutical products, resulting in a surge in prices and investment opportunities.
Minister Maru envisions PNG becoming a global kava production leader by integrating kava cultivation with existing crops like cocoa. This multi-cropping approach could provide an additional income source for local farmers.
He is optimistic about the kava industry's potential, especially with the global market expected to exceed US$210 billion (around PGK792, 756,767,670.00) by 2026.
The Ministry and Department of International Trade and Investment will collaborate with the Ministries and Departments of Agriculture and Commerce and Industry, as well as the National Trade Office, to expedite the establishment of the kava industry in PNG, potentially transforming the nation into a major kava producer.