Increasing market demand and modernized cultivation techniques stimulate coffee exports

25 Sep 2017
Increasing market demand and modernized cultivation techniques stimulate coffee exports

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.

 

(Myanmar Business Today: https://www.mmbiztoday.com/articles/coffee-exports-stimulated-production-and-demand )

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