Market flows and price patterns of fresh produce in Papua New Guinea

This study analyzes the fresh produce market in Papua New Guinea (PNG) using unique market flow and price data collected by the Fresh Produce Development Agency (FPDA) over the past 15 years across multiple markets. We document substantial flows of fresh produce from diverse production zones to major urban centers, with Port Moresby emerging as the primary terminal market. Hard fresh produce and sweet potato supplied there largely originate from the Highlands, while other staples and soft fresh produce are mostly sourced from other regions. Price analysis reveals four key patterns: (i) fresh produce prices have risen significantly relative to non-food products, particularly for items less supplied by the Highlands; (ii) prices exhibit strong seasonality—lowest at year-end and highest mid-year (June–August)—reflecting major cultivation periods and possibly seasonality in household labor availability; (iii) marketing margins have increased substantially, especially for soft fresh produce, creating new opportunities for Highland producers to compete in Port Moresby markets; and (iv) in 2023–2025, marketing and wastage costs accounted for the largest share of retail prices in Port Moresby—up to 85 percent for cabbage—while producer shares ranged from 15 percent for cabbage to 61 percent for Irish potatoes. These findings underscore evolving market dynamics and the critical role of supply chain efficiency in PNG’s fresh produce sector.