Production falls amid low prices

Even as coffee consumption grows in Thailand each year, the country remains a net coffee importer. Several coffee growers have shifted to other lucrative plants such as rubber and oil palm because of their higher market prices.

Varri Sodprasert, president of the Thai Coffee Association, said Thailand’s coffee production has dropped continuously the last five to six years, with production this year estimated at only 41,000 tonnes.

Coffee has been grown in Thailand for over 100 years. The country officially became a coffee exporter in 1976, selling 850 tonnes of robusta coffee. Helped by strong world market prices in the 1980s, exports thrived, culminating in a peak in 1991-92 of almost 60,000 tonnes.

The collapse of the “International Coffee Agreement” in July 1989 and the following slump in world coffee prices hit farmers hard. Facing an oversupply, the Thai government initiated a five-year plan starting in 1992 to encourage coffee farmers to switch crops, reducing the coffee plantation area from almost 500,000 rai.

Coffee plantation is estimated at 300,000 rai this year, with about 260,000 rai for robusta beans and 39,000 rai for arabica, said Peyanoot Naka, senior research officer at the Agriculture Department.

Robusta coffee growers are mostly in the South, where plantation area is expected to drop from 287,000 rai as more farmers shift to rubber and oil palm.

But arabica strains, grown mostly in the North, are expected to increase plantation given relatively high prices.

The ex-farm price of arabica is now at 150 baht per kilogramme, while the related price of robusta is 72 baht per kg.

Domestic consumption is estimated at 70,000 tonnes a year. Thailand imports at least 5,000 tonnes to supply instant coffee makers.

Thai instant coffee exports number 5,000 tonnes a year, excluding 100 tonnes of premium arabica.

Production falls amid low prices | Bangkok Post: business

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to top