With the coming of the
ASEAN Community, Thai coffee growers are likely to face greater competition.
The Department of Agriculture has suggested that they increase productivity and
seek ways to reduce production costs.
The Department has provided
coffee growers with farming techniques to improve their production and supply
chains, so that Thai coffee would become better known worldwide.
Demand for coffee in the
global market has been increasing. It stood at eight million tons annually
during the past three years. Statistics show that, in 2012, demand for coffee
beans by processing plants in Thailand came to 67,620 tons, up from 61,480 tons
recorded in 2011. The volume rose to about 70,000 tons in 2013.
There are two coffee
varieties grown commercially for consumption: Robusta and Arabica. The best
coffee is usually produced from Arabica beans, which are usually roasted and
made into fresh coffee. In Thailand, the Robusta variety is widely grown as a
cash crop in the South, especially in Chumphon and Ranong provinces. This
variety is easy to grow in lowland areas, and it is mainly used for instant or
blended coffee.
The Arabica variety is
grown on highlands in the North, especially in Chiang Mai, Chiang Rai, Mae Hong
Son, and Phetchabun. The weather in these provinces is cool, in comparison with
the rest of the country.
According to the Department
of Agriculture, the coffee planting area in Thailand covers 290,000 rai, or
116,000 acres, while production is 30,000 tons a year. Out of this production,
8,000 tons are Arabica beans. As domestic demand for coffee is on the rise,
Thailand imports a great volume of coffee each year. Because of the higher
quality of the Thai Arabica coffee, when compared with that of Laos and
Myanmar, it is sold at higher prices. The Department pointed out that when the
ASEAN Economic Community is in place in 2015, coffee at lower prices from
neighboring countries is likely to compete with Thai coffee. This situation
would affect Thai coffee growers, so they need to adjust themselves by
improving productivity and reducing production costs at the same time.
According to the
International Coffee Organization, statistics on coffee production in ASEAN
countries in the 2011/2012 production year show that Viet Nam came first in
terms of Robusta output, accounting for 37.8 percent of the global production.
Indonesia came second, with 13 percent, followed by Thailand at 1.7 percent,
Laos at 1.2 percent, and the Philippines at 0.7 percent. As for the Arabica
variety, Indonesia came first, accounting for 2.2 percent of the global
production, followed by Viet Nam at 1.2 percent.
Looking at per capita
consumption in 2011, Laos registered at 1.4 percent, followed by the
Philippines at 1.38 percent, Vietnam at 1.07 percent, Indonesia at 0.86 percent,
and Thailand at 0.44 percent.
(thailand.prd.go.th)