BACKGROUND
Post-harvest bottlenecks in Papua New Guinea limit trade, price, and potential
Across emerging economies, millions of smallholder farmers produce high-demand commodities—yet lack the infrastructure to meet quality standards or connect to premium buyers. For cocoa, basic post-harvest limitations remain one of the greatest barriers to export competitiveness.
Cocoa has long been one of Papua New Guinea’s most important crops, but outdated drying systems have held back quality, income and market access for many smallholders.
Smoke contamination from traditional firewood dryers taints bean flavor, limits traceability, reduces prices, and locks producers out of premium markets. Labour and fuel demands created by this woodfired drying method also fall heavily on rural households, especially women. Without scalable alternatives, losses persist, even as global demand rises for traceable, smoke-free cocoa.
PNG faced a pressing question: how to deliver quality cocoa without sacrificing rural access to export markets?
WHAT WE’RE DOING
A light-touch, high-impact solution is linking small PNG producers to premium buyers
The Australian Government partnered with cocoa exporter Outspan PNG Ltd. to deliver a practical answer: solar dryers for cocoa that protect quality, reduce emissions and raise farmer incomes without adding operational complexity.
Implemented through the Australia–Papua New Guinea Economic Partnership (APEP)—managed by Abt Global—this intervention replaces traditional woodfired drying kilns with solar-powered sheds designed for smallholder fermenters. These elevated drying sheds use the sun—not firewood—to complete the post-fermentation drying phase for cocoa beans.
Thirty-five solar dryers have been installed under this partnership, reaching hundreds of farmers in cocoa-growing communities in East Sepik. By September 2024, more than 140 tonnes of cocoa, worth more than K3.8M, had been dried using this technology.
The model is simple but effective: Use sunlight to unlock higher prices and income, reduce labour, and meet the strict demands of global chocolate markets.
IMPACT
Higher prices and incomes for less work and a healthier environment
The solar dryer intervention has delivered benefits for both households and the cocoa industry - raising incomes, improving efficiency and boosting confidence in cocoa traceability. Beans are now aggregated and sold through Outspan’s supply chain to premium global buyer Puratos, connecting PNG cocoa to a more stable, traceable and lucrative export market.
By the end of 2024:
- Farmers reported selling prices 2 to 7 times higher than before, earning PGK 6–7/kg versus PGK 1–1.70/kg using traditional methods.
- Earnings increased, with farmers earning PGK 8.8M in sales of 327 tonnes of premium, smoke-free cocoa in the first 10 months alone.
- Firewood use reduced by 818 tonnes, cutting workloads and easing environmental pressure.
- Women’s labour burden has reduced, freeing up time for other economic and community activities.
- Premium bonuses are being used by farmers and communities for essential investments, including school fees, home repairs, solar panels and classrooms.
- High local endorsement, with 86% of surveyed participants calling the project “very successful” and 83% recommending it to other fermenters.
The results point to a replicable, cost-effective strategy for strengthening export quality in tandem with better farmer livelihoods.
WHY IT MATTERS
Low-tech upgrades can transform rural value chains and livelihoods
As global supply chains seek stable, traceable sources, this model offers a clear, proven path to de-risking smallholder export systems. It shows that low-cost, high-leverage investments can shift rural systems—linking smallholders to premium buyers, reducing pressure on the environment, and delivering concrete returns without large-scale infrastructure.
PNG cocoa producers now have a differentiator: clean, traceable cocoa backed by local partnerships and proven technology. As West African harvests decline, PNG is increasingly positioned as a reliable, premium cocoa source. These results show that viable, export-grade cocoa can emerge from alternative regions with the right light-touch systems in place.
For governments and donors alike, this model confirms that even modest infrastructure, if well targeted, can shift value chains toward performance, transparency and long-term sustainability. It shows how public–private partnerships can deliver value chain upgrades in local systems and reduce downstream risk for global buyers.
PROJECT
Australia–Papua New Guinea Economic Partnership
CLIENT
Australia Department of Foreign Affairs and Trade (DFAT)