Subsistence Supply

Paradise Foods Limited Group CEO, James Rice in a recent interview with Oxford Business Group (OBG) had this to say about the implications of COVID-19 on subsistence supply in PNG.

Despite the long-term challenges, the subsistence focus of most agriculture in PNG may prove to be beneficial as the country faces the prospect of supply chain disruption due to the pandemic.

With international flights and cargo movements currently constrained, PNG may have to rely more on local produce if the transportation of goods into and within the country becomes problematic.

Mr Rice, told OBG that most of the population should be unaffected by supply chain issues as they are accustomed to consuming their own produce. “The challenge is in the two big cities of Port Moresby and Lae, which rely on imports as well as food coming down from the Highlands. We are already seeing a shortage of fresh fruit and vegetables from the Highlands in the cities, but not yet a shortage of imported food. Other non-food items are still arriving in PNG with only a slight delay.”

One factor working in PNG’s favour is that local food manufacturers have long maintained large raw-material inventories, to hedge against shipping disruptions or foreign exchange shortages.

While Covid-19 containment measures will have a detrimental effect on overall economic activity, there are signs that well-known local food brands may experience an upturn in PNG, at least in the short-term: Paradise Foods reported that sales during the last two weeks of March were 20% higher than expected, as urban residents stocked up on provisions.