New Caledonia's kava bars fear price surge could hurt industry

A kava bar serving counter in Nouméa. Photo: Supplied / NC la 1ère

New Caledonia's kava industry stakeholders are concerned at the increase of the price of the precious imported root, mainly from neighbouring Vanuatu.

Since the beginning of 2026, they claim the price of one kilo of dried kava chips has risen from 4500 French Pacific Francs (CFP, around US$44) at the beginning of the year to currently about 7000 CFP (around US$68), an estimated 40 percent increase.

New Caledonia Kava artisans' federation president José Bourgine told local media several factors could explain the steep increase.

This includes the recent rise in the price of fuel - and its repercussions on the cost of maritime freight from Vanuatu - and a decrease in kava production volumes from Vanuatu.

He said some external factors on the kava regional and world market have also compounded the situation, due to the emergence of new markets increasing demand, including in the United States, Australia, Thailand and even China.

Bourgine said if things do not improve, they will be forced to lay off some of their staff.

He said the kava bar industry in New Caledonia, which has boomed over the past thirty years, is also important in terms of social interaction between New Caledonia's diverse communities (European, Melanesian -including from Vanuatu-, Javanese, Polynesian and even people of Arab ascent).

In New Caledonia, mainly in the capital Nouméa and its surroundings, people go to the kava bars (typically in the evening or late afternoon) and drink the root cold concoction in coconut shells, just like in Vanuatu and other Pacific islands.

"They come to the nakamals (kava bars, mostly open in the evening) to drink, but also to talk and exchange views. This is one of the rare places where people from diverse communities can interact. This is a factor of appeasement for the population", Bourgine told Caledonia television.

Some of the bar owners point out they have fixed costs and salaries to pay each month, the commodity price increase certainly does not help.

Some bar owners have already started to adapt to the new situation.

"Some will serve smaller doses in a shell, others will increase the proportion of water in the mix", a Nouméa kava bar owner told local media.

But some regular customers say it is quite obvious that the "shells have shrunk".

The federation has recently held a meeting to try and identify ways to improve the situation.

One of the pre-identified solutions currently mooted would be to form into a cooperative to better negotiate the price of the precious root. Other options mentioned could be to start growing kava in New Caledonia.

"It's in our interest to find ways of maintaining our industry here, because it is also a significant contributor to our economy", federation spokesman Thomas Guarese said.

He said current estimates show that New Caledonia's kava imports amount each year to 560 million CFP (5.4 million US dollars).

Kava is not grown in New Caledonia and most of the material (as a dried product) is imported from Vanuatu, which is the base of a thriving growing and processing industry, both for domestic and export markets.