Myanmar could be a specialty coffee grower
Myanmar could be a specialty coffee grower
SINGAPORE (Dow Jones): In the eyes of Gregory Love, Myanmar is
capable of becoming a specialty coffee producer in Southeast
Asia.
The Myanmar government has begun distributing land for coffee
growing, as part of its effort to promote coffee as an export
crop. But more importantly, Myanmar farmers have taken to
training programs initiated by his company, Golden Triangle Eco-
Resources Ltd.
They have learnt the proper techniques of harvesting coffee,
which could yield higher incomes for their produce, Love,
director of Golden Triangle, said in an interview with Dow Jones
Newswires.
"Farmers are picking up all red coffee cherries. There has
been a great improvement in techniques," Love said.
In coffee harvesting, only red and ripe cherries produce the
best green beans.
Golden Triangle, established in 1996, is a coffee processor
and exporter. In the last two years, the company has established
training programs for some 4,000 Myanmar farmers, devoting time
to teaching them on how to increase yields and attain the best
price for their coffee.
Golden Triangle sells Myanmar coffee into markets in Japan,
Europe and the U.S.
Coffee in Myanmar has traditionally been a border trade
commodity, but now the government is aiming to promote it as an
export crop, Love said.
As part of its export promotion program, the government in
Myanmar has distributed prime coffee growing land amounting to
10,000 acres since 1994.
Of this, about 3,600 acres are currently being planted, he
said.
More recently, it has approved plans for a further 130,000
acres of land for coffee growing, which could yield as much as
60,000 metric tons of arabica coffee in the next five years.
Myanmar currently produces some 500 tons of coffee per year.
The production and export of specialty coffee, mostly
referring to arabica coffee for its mild cup and better aroma,
have been the privilege of the countries in Western hemisphere
and mostly of the Americas.
Asia's part barely, if at all, exceeds 10% of overall arabica
production, according to Pierre Leblache, New York-based
president of ConsultAbroad Inc.
In Asia, India is the biggest arabica producer with an annual
production of about 100,000 metric tons, followed by Papua New
Guinea and Indonesia. Vietnam, currently the world's biggest
robusta producer, has also embarked on an arabica cultivation
program, but its arabica production is as yet very small.
Love said Myanmar's coffee isn't recognized in the world
market because of poor processing techniques and poor marketing.
But most of its arabica coffee are grown at altitudes of over
3,000 feet, and as such rust disease isn't really a big problem,
he said.
It's superior quality coffee, which some Japanese specialty
coffee roasters dubbed the "elegant coffee," commands a premium
in the world market.
Japanese roasters are willing to pay a premium of 50 cents a
pound to arabica prices on the New York Coffee, Sugar & Cocoa
Exchange for the Myanmar-origin Bourbon variety, he said.
Nearby arabica coffee prices on New York's Coffee, Sugar &
Cocoa Exchange are currently hovering around 62 cents a pound.
With the abundance of coffee supply in the world market and
low world prices, it should be apparent that producers need to
pay more attention to quality, Love said.