Review: Inadequate Post-Harvest Processing in PNG Forest and Wood Sectors

Abstract

Papua New Guinea (PNG) is blessed with a wide range of natural resources, including forestry and lumber. However, unfortunately, the nation is losing out on millions of jobs and billions of dollars in income by exporting these resources in their unprocessed form instead of taking advantage of downstream processing. PNG has the world’s third-largest rainforest, covering 33.6 million hectares and comprising 72.5% of the country’s total land area. It is imperative that the government of PNG makes the most of this valuable natural resource. The raw logging market was once profitable, but it has been in decline since China became PNG’s primary export market in 2009. To find a new source of income, the Forest Revenue Review Team (FRRT) evaluated several processing options, including the construction of large-scale plants for exporting veneer, plywood, and medium-density fiberboard (MDF), sawmills of different sizes, and a small sawmill integrated with a joinery facility. However, implementing these solutions presents various challenges, including the high-cost structure of the PNG economy and the need for national forestry legislation and policy enforcement. To ensure sustainable development and address these obstacles, it is crucial to maximize the value of PNG’s forest resources and economy by encouraging downstream processing of forestry and wood. PNG can achieve economic growth and environmental protection by promoting equitable and sustainable development, monitoring international market trends, and resolving specific issues regarding downstream processing. Despite the challenges, PNG is taking steps to advance value addition and sustainable methods in the forestry industry.