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.