PORT MORESBY, 14 AUGUST 2026 (EU- STREIT PNG)—Papua New Guinea has expanded its capacity to process cocoa locally with the inauguration of a US$2.8 million upgrade at Queen Emma Chocolate in Port Moresby. The new equipment is expected to double the factory’s output and allow more Papua New Guinean cocoa to be turned into higher-value cocoa ingredients and finished chocolate before being exported. The facility, operated by Paradise Foods Limited, was upgraded through the EU-STREIT PNG Programme, funded by the European Union and implemented by the Food and Agriculture Organisation of the United Nations (FAO). Twelve types of new machinery have been installed to improve production capacity and consistency and meet the standards required by specialty buyers. Prime Minister James Marape said the investment supports the Government’s push for full downstream processing of agricultural products within the country. “This is our own company, complementing the Government’s desire for 100 per cent downstream processing in-country. And through this approach, we are making three times more than what we make when we export the raw product. “I want to thank the management and the entire team, as well as our very important partners: the United Nations Resident Coordinator’s Office, the Food and Agriculture Organisation of the United Nations, and the European Union,” said Prime Minister James Marape The investment is also aimed at strengthening the link between cocoa farmers and domestic processing. Under the EU-STREIT PNG Programme, cocoa farming groups in the Sepik have been linked directly with Queen Emma Chocolate, which sources well-fermented and smoke-free cocoa beans. Producer groups supported by the programme have started supplying quality dried cocoa beans to the factory, with deliveries already reaching tens of tonnes. Dr Kachen Wongsathapornchai, Head of the FAO Country Office in Papua New Guinea, said better quality would only be sustainable if farmers were rewarded by the market. “Quality only becomes sustainable when the market pays for it,” said Dr Kachen Wongsathapornchai, Head of the FAO Country Office in Papua New Guinea. “Under EU-STREIT PNG, FAO worked across the whole chain, from planting material and post-harvest handling in the Sepik to the processing capacity inaugurated here today, so that better beans meet a buyer who rewards them. Development projects have an end date. Relationships do not, and that is what will keep this factory and the farmers who supply it working together long after the Programme closes.” The factory upgrade is supported by work across the cocoa supply chain in East and West Sepik. Under the programme, 3.4 million pest-tolerant cocoa seedlings have been planted and 4,960 hectares of cocoa blocks rehabilitated. The programme reports a 95 percent survival rate for grafting and says about 19,400 cocoa farmers have been trained in bud grafting, pest and disease management, block management, climate-smart agriculture and post-harvest handling. Post-harvest initiatives have included upgrading 500 cocoa dryers, introducing 100 solar combination dryers to reduce reliance on fuelwood and establishing 120 cocoa storage facilities. The programme has also supported the formalisation and development of 363 cocoa agribusinesses. Paradise Foods Limited chairman Anthony Smare said the company had chosen to invest in Papua New Guinea. “We believe in PNG’s future. We were not told to invest in our country, we chose it. Our investment shows in our results. Paradise Foods is not only PNG-owned but PNG-made and supported. Last month, Paradise Foods recorded its highest month of sales in 93 years.” The company has also used programme support to take PNG cocoa and chocolate products to trade events in Australia, New Zealand and Singapore. The aim is to build links with specialty chocolate makers and niche ingredient buyers and open access to higher-value markets. European Union Ambassador to Papua New Guinea Erica Hasznos said the investment was part of the EU’s wider Global Gateway strategy. “Under the Global Gateway strategy, the European Union is investing across Papua New Guinea’s cocoa value chain, from quality production in the Sepik to modern processing here in Port Moresby. By raising quality and consistency, EU-PNG cooperation brings more value for Papua New Guinean business and small farmers, and more opportunities to access premium European markets. This is what Global Gateway stands for: sustainable investment, stronger industry and trade, and deeper ties between Papua New Guinea and the European Union.” The investment supports PNG’s Medium Term Development Plan IV priorities on downstream processing, commercial agriculture, small and medium enterprises and private-sector partnerships. As of June 2026, the EU-STREIT PNG Programme had reached 513,000 people, benefited 85,400 families, supported 700 farmer groups and trained 34,000 farmers across 42 local-level government areas in East and West Sepik. Queen Emma Chocolate is produced by Paradise Foods Limited and is one of Papua New Guinea’s domestic cocoa processing and chocolate-making operations….PACNEWS