A delegation of Korean investors has visited Papua New Guinea to explore opportunities in poultry, trade and education, a move the government hopes will spark long-term economic partnerships.
Minister for International Trade and Investment Richard Maru said the visit was an important signal of growing interest from Asia’s fourth-largest economy.
“This is the first visit we have had from the Koreans this year. Korea has transformed from being war-ravaged to a global economic powerhouse. We are hoping that as a result of this visit, they (the Korean investors) will make some investment decisions in PNG. I am extremely delighted and excited about the future.”
Among the visitors were representatives from Charmfre Inc, Korea’s second-largest chicken producer and a global leader in animal welfare standards. The company is considering a major investment in PNG’s poultry industry.
Maru said the opportunity could not be more timely, adding that PNG is a net importer of chicken.
"We are currently importing over K200 million worth of chicken annually, which means we are not producing enough chicken to meet our own domestic demand. Port Moresby does not have a major poultry operation. Our city is supplied from Lae and that is why the cost of chicken is very high because of the freight cost," he said.
“We need some global players like Charmfre to partner with the National Government, the Central Provincial Government and with Papua New Guinean companies to invest in a major poultry operation within the Central Province. Our need is not only broiler meat, but also eggs and day-old chicks. We are looking at a major investor who can operate in the entire value chain of a chicken, including exports," he added.
Maru said that the PNG government has already indicated to Charmfre that a poultry project in Central Province will be considered a Special Economic Zone (SEZ) with incentives to be offered.
"With our population growing at the rate of 4 percent per annum and with more resource projects and SEZs in the pipeline, the demand for chicken will continue to grow so investors in the poultry space will not go wrong investing in PNG," he said.
He added the government was determined to build local capacity. “The Marape-Rosso Government is keen to replace all chicken imports and be a net exporter of chicken. Partnerships with countries like Korea and its leading poultry companies who own global export brand like Charmfre would be a very exciting investment prospect," he said.
The visit also drew support from the PNG Poultry Industry Association. Chairman Chris Prestwood said global supply shocks underscored the urgency of investment.
“We have had difficulties in chicken supplies this year with number one reason being the countries that we have been importing chicken from being hit by avian influenza. It is critically important that our industry builds capacity by having our Government opening doors for other countries to come and partner us to create that capacity. We have to overcome malnutrition, stop importing and create opportunities," he said.
“Over the next ten years, the poultry industry needs to invest more than K1.2 billion to ensure we meet these milestones. We have the potential. Meanwhile, our existing producers are doing wonderful job. This year, production in PNG has grown by 40 percent which is tremendous," he added.
A highlight of the Korean delegation’s trip was the signing of a Memorandum of Understanding (MoU) between the Ministry of International Trade and Investment and Wonkwang University, whose Vice President for Academic Affairs, Professor Jin-Soo Hwang, was part of the visiting team.
Maru said the agreement was a starting point for a broader partnership.
“The purpose of this MoU is for us to cooperate in vocational training, industrial talent development, trade, investment, and research and development in import and export with the aim of contributing to economic development and strengthening industrial cooperation between our two countries," he said.
“This is a start of our relationship. While they have signed an MoU with my Ministry, I will channel them to other Ministries and agencies that will be required to work with them," the minister said.
During their stay, the Korean investors also toured the Paga Hill SEZ in Port Moresby to evaluate investment opportunities.
For PNG, the visit offered not just the prospect of poultry investment but also the hope of a deeper economic partnership with one of Asia’s most dynamic economies.
