Can Myanmar's Coffee Producing Regions Absorb a 279,000-Acre Expansion?
Myanmar's government plans to add 279,000 acres of coffee cultivation in 2024, with a long-term target of 300,000 acres. Planting is concentrated in Nawnghkio and Pyin Oo Lwin District in northern Shan State and in Chin State. Current area exceeds 50,000 acres, about 38,000 of it Arabica coffee and roughly 12,000 Robusta.
The Myanmar Coffee Association reports purchase orders from 11 countries, including the United States, the Netherlands, and France, with the harvest season usually running from April to May. Limited export channels, a high share of border trade, and past conflict disruptions leave the expansion plan uncertain, and any production increase would only show up after about five years.
The Myanmar government recently announced an ambitious coffee expansion plan, aiming to increase coffee cultivation area by 279,000 acres in 2024, with a long-term goal of expanding to 300,000 acres. Meanwhile, the Myanmar Coffee Association has received purchase orders from 11 countries including the United States, the Netherlands, and France, and the export layout for the new season is being advanced. However, limited export channels, a high proportion of border trade, and previous disruptions from conflict have added uncertainty to this expansion plan. This article will review Myanmar's coffee industry expansion plans, production and sales status, and export challenges, and include Front Street Coffee's perspective on related producing regions.
According to information released by Myanmar's State Administration Council, the Myanmar government is proceeding with an expansion plan to increase coffee cultivation area by 279,000 acres (about 170,000 mu) in 2024. If this phase's target is successfully achieved, further expansion arrangements will follow, ultimately potentially pushing the country's total coffee cultivation area to 300,000 acres (about 1.82 million mu), and driving a significant increase in coffee production after five years.
The Myanmar government also stated that land for coffee expansion has already been planned, and enterprises and capital interested in entering the coffee cultivation sector are welcome. In terms of current distribution, Myanmar's coffee cultivation is mainly concentrated in Nawnghkio and Pyin Oo Lwin District in northern Shan State, as well as Chin State and other areas. At present, Myanmar's total coffee cultivation area exceeds 50,000 acres, of which about 38,000 acres are used for growing Arabica coffee, while the remaining about 12,000 acres are planted with Robusta coffee.
Previously, the Myanmar Coffee Association announced that due to orders from multiple countries, it plans to export coffee to 11 countries including the United States, the Netherlands, and France in the new coffee season. Myanmar's coffee production season is usually concentrated from April to May each year. For the 2024 coffee season, the Myanmar Coffee Association will coordinate arrangements for exports to the above 11 countries.
According to a member of the Myanmar Coffee Association, in addition to countries that are continuously purchasing coffee, many other countries have also come forward to discuss procurement, and even before the new season arrives, a large number of overseas orders have already poured in. At present, Myanmar produces an average of about 8,000 to 10,000 tons of coffee annually, which supplies both the domestic market and exports overseas. In the face of the current demand situation in the coffee market, the government decided to promote the expansion of coffee cultivation area.
However, earlier Myanmar media reported, according to the Myanmar Coffee Entrepreneurs Association, that regarding coffee exports, the government stipulates that coffee can only be exported through sea channels. This restriction has constrained coffee exports, and export volume will decline. At present, Myanmar temporarily prohibits coffee exports via border trade and only allows exports by sea, so the amount of coffee exported through border routes to neighboring countries will decrease, which will also have a certain impact on the coffee market. Myanmar's border coffee exports account for about 75%, mainly sold to China and Thailand, while sea exports are mainly destined for countries such as Switzerland, the United States, the United Kingdom, and Japan. Earlier, coffee exports were also temporarily suspended due to conflict, and are currently gradually recovering.
For enthusiasts who follow Southeast Asian coffee producing regions, Front Street Coffee suggests paying continued attention to the flavor performance of Myanmar Arabica in places such as Shan State. If the expansion plan is implemented in the future, it may bring more coffee choices with regional characteristics to the market.
The above content is compiled by CoffeeHunters, a coffee news website.
