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🇳🇿 New Zealand /Economy & Trade

New Caledonia kava bars fear price surge could hurt industry

From RNZ Pacific · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Kava bars in New Caledonia face a potential price surge due to rising import costs for the kava root, primarily from Vanuatu.
  • The price of dried kava chips has increased by an estimated 40 percent since the start of 2026, driven by higher fuel prices, increased freight costs, and reduced production in Vanuatu.
  • Industry stakeholders are concerned about the impact on their businesses and the social fabric of New Caledonia, exploring solutions like forming cooperatives or local cultivation.

New Caledonia's kava industry is bracing for a significant price increase of the imported root, a staple in the territory's social and economic life. Kava bar owners and stakeholders report that the cost of dried kava chips, mainly sourced from neighboring Vanuatu, has surged by approximately 40 percent since the beginning of 2026.

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

— José BourgineThe president of the New Caledonia Kava artisans' federation described the social importance of kava bars.

José Bourgine, president of the New Caledonia Kava artisans' federation, cited several factors contributing to this steep rise. These include the recent increase in fuel prices, which has directly impacted maritime freight costs from Vanuatu, and a decrease in kava production volumes from the island nation. Additionally, Bourgine noted that the emergence of new international markets, including the United States, Australia, Thailand, and China, has intensified global demand, further compounding the situation.

If the price trend continues, Bourgine warned that businesses might be forced to lay off staff. The kava bar industry, known locally as "nakamals," has seen significant growth over the past three decades. Beyond commerce, these establishments play a crucial role in fostering social interaction among New Caledonia's diverse communities, including European, Melanesian, Javanese, Polynesian, and Arab populations. Nakamals serve as vital spaces for dialogue and exchange, promoting social cohesion.

Some will serve smaller doses in a shell, others will increase the proportion of water in the mix

— Nouméa kava bar ownerA kava bar owner in Nouméa explained how some establishments are adapting to rising costs.

Bar owners are already contemplating adaptive strategies. Some are considering serving smaller doses or increasing the water content in the traditional kava concoction, though customers have noticed the change, remarking that the "shells have shrunk." To address the crisis, the federation is exploring solutions such as forming a cooperative to negotiate better prices for the kava root. Another option being considered is the potential for local kava cultivation in New Caledonia, which currently imports an estimated 560 million CFP (US$5.4 million) worth of kava annually.

It's in our interest to find ways of maintaining our industry here, because it is also a significant contributor to our economy

— Thomas GuareseFederation spokesman Thomas Guarese emphasized the economic importance of the kava industry.
DistantNews Editorial

Originally published by RNZ Pacific in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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