COFFE INDUSTRY IN ASEAN

COFFEE (Coffea spp) among polupar crops in ASEAN country with the total production is about 153,268 metric tons about 26% of the world production. The coffee producers are Indonesia, Lao PDR, Malaysia, Thailand and Vietnam. The total coffee exports, whereas the total coffee consumption is approximately 11,000 thousand - 60 kilogram bag or 7.5% of the words consumption in this regions. From my observation and study, the ASEAN coffee consumption has steadily increase from about 4.8% of the world consumption in 2013 to 7.4% due to various factors. However I found that the ASEAN coffee exports has steadily increase from 36,490 mt to to higher amount (2.1 million mt). As for the export type, 80-85% are the green coffee followed by soluble coffee (10-15%) and the remaining as other forms. For the exports of the green coffee beans, Vietnam shares 97.5% of coffee production especially exported to USA, China, Hong Kong and other developed country. Indonesia are the largest coffee growing area with 1.23 million hectare scattered throughout the islands involves for 1.9 million smallholders. This article in "Anim Agriculture Technology" I would like to share my knowledge about status of coffee industry among ASEAN countries.

Challenges in coffee industries in ASEAN includes to increase yield without expanding land area for coffee production, value addition, renew old coffee tree, increase operation management and quality control. Coffee plantation need lots of men-power during harvesting period that comprise for 66% for the costs of production. The input costs such as chemicals, fertilizer, irrigation facility and other inputs increasing from 2008 Oil Crisis until today. For coffee in future the opportunities in ASEAN I believe are favourable demographics (good condition for coffee to be grown) due to large population with rising middle class especially for coffee drinking society. Coffee is considered high end category with the introduction of various coffee products in the markets. Recently the StarBuck Coffee hits most of ASEAN cities as a high class expensive coffee outlets. More farmers has to sustain their plants and increase productivity through various approaches.

Malaysia grown about 5,668 hectare of coffee with annual production about 16,600 metric ton valued at RM10.9 million. Coffea robusta and Coffea liberica are two varieties grown in Malaysia in three major states that was Joho, Selangor and Perak. Most coffee growers are smallholders with an average farm size of 1.0 hectare. In 2012, Malaysia export RM13.4 million of tea, coffee, cocoa and spices (Malaysia Statistic Department). Growing trends of coffee decreasing every year in Malaysia and change their coffee farms to oil palm or other promising commodities. From my observation in Johor for 10 consecutive years, most farmers refuse to replant their coffee due to the high costs for harvesting (65% of total costs of production), uncertain ex farm beans price, low productivity, attack by pests and diseases and low returns compare to other sectors.Thanks. 

Prepared by,
M Anem
Senior Agronomist,
Mini MAHA Melaka,
Dataran MITC,
Melaka,
Malaysia.
(29 Ramadan 1435H)