Papua New Guinea Milling Assessment

Approximately 150,000 tonnes of flour are sold each year in the PNG flour market. The market structure consists of:

• Two companies who mill and distribute flour products ;
• A small number of companies who import flour, packaged flour and premixes, including products for commercial consumers; and
• Wholesalers and retailers who supply flour products to both commercial and household consumers.

The 2 flour manufactures in PNG import raw wheat. They, then, mill, pack and distribute flour products in the markets. In addition to the two manufacturers there are a number of importers in PNG, normally wholesalers that import flour products and premixes for distribution around the country.

The two flour millers in PNG are:

• Associated Mill Limited (AML) - a subsidiary of Goodman Fielder PNG
• Niugini Tablebirds Ltd (NGTB) - a subsidiary of Mainland Holding Limited.

Both flour manufacturers have their products distributed nationally. AML has mills in Port Moresby and Lae. NGTB has a mill in Lae. Customers of the mills purchase their flour at the factory gate price and then arrange for transport to their main distribution points, thereby incurring further on-costs such as additional sea and/or road freight charges. Under the 2005 price monitoring arrangements, these transport costs were monitored by the Commission. The freight on-costs from the main distribution points to more remote areas were not monitored by the Commission.

Further generic information on the milling sector of PNG can be found in the following document:

Papua New Guinea Milling Assessment Additional Information

Milling Company Associated Mills Limited

AML is a subsidiary of Goodman Fielder PNG which owns 74% of AML’s shares. The remaining shares are held by Melanesian Trustee Services Limited on behalf of the Pacific Balanced Fund. AML operates 2 mills, one in Lae and another in Port Moresby. AML distribute flour products nationally under the brand names “Flame” and “Mothers Choice.” Their products come in pack sizes ranging from 1kg to 50kg and are mainly sold for household use and commercial use such as biscuit companies, food processors and bakeries. AML provides employment to a total of more than 520 Papua New Guineans both in Lae and Port Moresby.

Milling Company Niugini Tablebirds

NGTB is wholly owned by Mainland Holdings Limited. The company established a flourmill in Lae in 2000 and produces flour products under the “3 Roses” brand for national distribution. In addition to flour production NGTB operates other business such as chicken farming and processing and the production of animal food products such as stock feed and chicken pellets. NGTB’s whole operation is estimated to employ 1,000 Papua New Guineans.

Like AML, NGTB mills and sells flour in pack sizes ranging from 1kg to 50 kg bags for the household and commercial markets however NGTB’s main market is commercial users who buy larger pack sizes. Only Niugini Tablebirds mill was assessed. Beyond the flour mill, Mainland Holding has a comprehensive range of products and services:

• Chicken production
• Stock feed for animals
• Fresh table eggs production
• Crocodile Farm
• NG Coffee, Tea and Spices company

Niugini Tablebirds are also involved with the following:

• Abco truck transport company
• Fuel Electrical Power plant
• Properties Management
• TPL : Bag production company

59 people employed in the mill, additional in the transport and bagging companies, + marketing and sales department. Total for Mainland Holding +/- 1,000 people.