Impacts of currency depreciation on the tree-crop sector in Papua New Guinea

Abstract

The recent depreciation of the PNG kina in recent years has improved the overall profitability and competitiveness of the tree-crop sector, but the sub-sectors have fared differently. The coconut and cocoa sub-sectors would have continued to be adversely affected by high local cost levels without the depreciation. The coffee and oil palm sub-sectors would be profitable even without the depreciation. The depreciation alone would not be sufficient to improve the competitiveness of coconut and, to some extent, cocoa production when world prices are low. Viability of the coconut industry remains a serious problem. Show more