New coconut processing factories

TWO new coconut processing factor ies have been proposed for Papua New Guinea and the Solomon Islands.

Kanare Coconut Products Pty Ltd, of Madang, is now seeking a k 3 million (SUSS.OS million) guarantee from the Papua New Guinea government so that it may build a plant to produce coconut cooking oil for both domestic and export markets. The company plans to estab lish the factory at Bapukar Plantation, 58km north of Madang, and it proposes to provide local coconut growers with a guaranteed price. Within three years, Kanare hopes it will extend its pro duction to include coconut oil soap, margarine and dripping.

This is the second mill plan to be raised this year: an MP for Madang is

seeking World Bank backing for a factory also to be located in the area.

A Solomon Islands Government team has been touring coconut factories in Asia before finalising its decision on a new policy. The government wants to set up a factory by mid-1992 to manufacture coconut cream, desiccated coconut, coconut peat and oils. This will be additional to the existing Lever Solomons Ltd coconut oil factory in Yandina.

Transport is a problem in the Sol omons, and the state marketing organ isation has already indicated it may have to buy new vessels to collect coconuts from the various islands. These would also be available to collect other

agricultural produce. □