Opening Access to a New Overseas Niche Market for Sepik Cocoa Farmers in Papua New Guinea

Wewak, Papua New Guinea – With the support of the EU-STREIT PNG Programme, farmers from four cocoa cooperatives in East Sepik Province have successfully exported 240 bags of high-quality dried cocoa beans weighing 15 metric tonnes to New Caledonia. 

Based on current market indications, cocoa is around USD 6,052 (PGK 25,830) per metric tonne, so expected payment for this shipment is over USD 90,000 (PGK 387,000). 

The cooperatives involved in this export were Numbo Cooperative, Yekere Cocoa Cooperative, Juar Cooperative and Ramangs Cooperative. 

As per a signed export agreement for the first shipment, the overseas buyer has transacted 90 percent of the payment to the farmers following the arrival of the consignment at the destination seaport. The remaining 10 percent will be paid upon receipt of the container at the buyer’s factory. 

This marks another step forward for rural cocoa farming households and families in the Sepik region of Papua New Guinea. They have been working closely with the Food and Agriculture Organization of the United Nations (FAO) through the EU-STREIT PNG Programme. This has been done in collaboration with the Cocoa Board of Papua New Guinea (CBPNG) and the East Sepik Provincial Department of Agriculture & Livestock (DAL). The collaboration aims to access the specialty and niche markets in New Caledonia and beyond. 

This export follows a visit by a cocoa expert from a New Caledonian chocolate-making company. The expert’s visits and collaboration with cocoa groups in 2025 were facilitated by FAO through the EU-STREIT PNG Programme. 

Chairman of Numbo Cooperative Mr Kenneth Peka Tau expressed his gratitude for the technical support by the EU-STREIT PNG Programme and local partners. He said this support has contributed to improving their production and block management practices. He also highlighted the learning experiences gained from this first major export. 

“We used the Yekere Cooperative Society’s micro-lot licence issued by CBPNG after a recent Cocoa Cupping Event to export only a small amount of beans as a trial and have learned a lot about the export process and procedures,” he said, adding, “We sincerely thank EU-STREIT PNG for guiding us to access these market opportunities.” 

He encouraged all fermentary operators and owners in the Sepik region to continue maintaining strict quality in the production and processing of their cocoa beans. He said this is crucial for sustainability as they prepare for their next exports. 

Speaking on behalf of the farming groups, Chairman of Ramangs Cooperative Mr Jonathan Poema added “This has opened our eyes to the specialty market and the standards required,” he said. 

Regional Manager for Cocoa Board in the Sepik Mr Daryll Worimo praised the combined efforts of the four groups led by Yekere Cocoa Cooperative. “I like to give special mention to the leadership of the Yekere cocoa group who didn’t take long to put to use this specialized permit, and most importantly to combine its effort with other groups for this export,” adding, “This is a remarkable achievement and way forward for cocoa development in the Sepik.” 

He explained that Yekere Cocoa Cooperative is the first in the region to be issued a micro-lot export licence. This allows smallholder farmers, cooperatives and farmer groups to export small quantities of high-quality cocoa directly to niche international markets. This initiative is designed to increase rural incomes, improve quality, and facilitate direct trade in the fine cocoa and bean-to-bar sector. 

A key outcome of the EU-STREIT PNG Programme is the empowerment of local community groups, farmers, and entrepreneurs to directly participate in the export market for high-quality cocoa and vanilla. This moves them beyond local sales. Dr Rabi Rasialy, the Programme Coordinator for the EU-STREIT PNG, says, “Groups were operating individually and it’s exciting to see that they’re now interacting through various farmer-to-farmer exchange initiatives enabling such collaborations to meet the volume demands of niche export markets, which would be impossible to satisfy individually.” 

Between February and April is the high flush season for cocoa in the region. The New Caledonian company is expecting up to six more shipments during this period. These will be sent under a revised agreement for higher-quality cocoa beans. 

The company plans to establish an office and appoint a representative in the provincial capital Wewak. It also plans to set up a depot in Wewak. This will help facilitate exports. The company also plans to provide training to farmers and fermentary owners. It will work with farming groups on their community give-back programs. 

About the EU-STREIT PNG Programme 

The EU-STREIT PNG Programme is the European Union’s largest grant-funded initiative under the EU Global Gateway Strategy in Papua New Guinea. It is implemented as a United Nations Joint Programme led by FAO in partnership with ILO, ITU, UNCDF and UNDP. It focuses on boosting sustainable, inclusive rural development by enhancing returns and opportunities in the cocoa, vanilla and fisheries value chains (FAO). It also strengthens key enablers: digital inclusion (ITU and FAO), digital financial services (UNCDF), sustainable, climate-resilient transport infrastructure (ILO), and renewable-energy solutions (UNDP and FAO). The Programme directly benefits the East and West Sepik Provinces. 

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