Coffee Exports Stimulated by Production and Demand

Myanmar coffee traders have exported 535 tons of coffee beans this fiscal year, twice as much as the same period the year before, according to statistics from the Ministry of Commerce.

Last year, the nation exported 860 tons of coffee generating $1.438 million. In the first five months of the 2017-2018 fiscal year, exports have generated $1.5 million, as the price of $3,000 to $7,000 per ton, based on quality.

Increased demand from Japan and US markets has had significant impacts on inflating trade volume, U Myint Soe, Deputy Secretary of Ministry of Commerce, said.

Myanmar’s primary cultivation areas are in Shan State’s northern, southern and eastern regions, followed by Chin State, Kayin State, and Mandalay Region.

Lowland coffee is mostly exported to China through overland borders while highland coffee’s major destination is Europe, the United States, South Korea, and Japan.

According to statistics from the Ministry of Livestock, Agriculture, and Irrigation, Myanmar’s annual coffee production is approximately 8,000 tons from over 20,000 hectares of cultivated land.

Upon researching the best methods for industry development, the Myanmar Coffee Association applied to the Ministry of Agriculture, Livestock and Irrigation for government subsidies to boost the nation’s coffee industry.

The Ministry of Commerce is planning to add coffee to a commodities export list that affords the caffeinated bean special tax statuse, subject to government funding, and likely to receive financial, technical and marketing assistance, U Min Hlaing, Secretary of Myanmar Coffee Association, said.

USAID has already given $200,000 worth of coffee cultivating equipment to Myanmar growers in southern Shan state, U Ye Myint, Chair­man of Myanmar Coffee Association, said.

USAID is also providing technical training to cultivators for using moisture indicators, boosting productivity, and harvest techniques.

In 2016, 36 tons of Myanmar coffee were shipped to the US, while 18 tons was exported to Switzerland, according to the Myanmar Coffee Association.

Source : Myanmar Business Today