Is there a distinction between male and female Coffee beans in Thailand? a brief History of Coffee in Thailand
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Coffee beans are not male or female, which became popular at tourist attractions in Southeast Asia a few years ago. later, someone traced the source to a tour guide in Bali, who described round beans as male beans and flat beans as female beans, in order to entice tourists to buy cheaper coffee beans at high prices.
As a popular beverage in the world, coffee is increasingly favored by Thai consumers. For farmers in the south and north, coffee is also an important cash crop, especially in promoting the development of the local economy.
A brief History of ● Coffee in Thailand
According to records, the history of growing coffee in Thailand can be traced back to the Dacheng period, but the real popularity in Thailand began during the reign of King III (circa 1824). In 1960, the total area of coffee planting in China was only 19000 lai (1 lai = 1600 square meters), with an annual output of 750t. In that year, 6000 tons of coffee products were imported. As a result, the government began to promote the plan to grow Robusta coffee beans in southern Thailand and was successful.
Thai coffee was officially exported in 1976, exporting about 850 tons of Robasta coffee. The price rise in the world coffee market in 1980 pushed up Thailand's coffee production and exports. At one point, it set a record of 500000 tons of planting area, 95000 tons of output and 60, 000 tons of exports. Later, due to the decline in world coffee prices and oversupply in the market, coffee farmers in Thailand suffered heavy losses. The government advised coffee farmers to reduce their coffee acreage and switch to other crops, resulting in a significant reduction in coffee acreage and production. In the end, Thailand changed from a former coffee exporter to an importer.
Current situation of production and Marketing of ● Coffee in Thailand
At present, the main coffee growing areas in Thailand are Chunpeng, Lanong, Suratani and Krabi in the south, and Chiang Rai in the north. Robasta coffee beans are grown in the south, while Arabica coffee beans are suitable for the altitude and rainfall in the north.
According to preliminary statistics from the Thai Office of Agricultural economy, in 2012, the national coffee bean harvest area was 306984 lai, a decrease of about 4.93% over the same period last year; the annual output was estimated at 41560 tons, down 1.97% from the same period last year; and the average output per Lai was 135kg, an increase of 3.05% over the same period last year. The three prefectures with the largest reduction in area are Chunpeng, Lanong and Surat Thani.
The decrease in the acreage and yield of coffee beans is mainly due to the fact that coffee growers in southern Thailand cut down coffee trees and planted rubber and palm trees at the beginning of the year. On the one hand, rubber trees and palms intercropped with coffee trees are entering a mature stage, on the other hand, farmers are tempted by rising rubber prices and a lack of confidence in the prospects and prices of the coffee market.
Based on the continued growth of domestic coffee consumption, the demand for coffee beans from Thai domestic processing plants has increased year by year over the past few years. The Department of Internal Trade predicts that it will reach 67620 tons in 2012, an increase of 9.99 percent over the previous year. Experts believe that domestic coffee consumption demand is still on the rise.
From January to May 2012, Thailand exported a total of about 1971.16 tons of coffee beans, with a total value of 165.35 million baht, exceeding 177 per cent and 67 per cent respectively for the same period in 2011. The export of finished coffee was 2847.68 tons, totaling 463.41 million baht, down 23 per cent and 10 per cent from the same period last year. By contrast, Thailand imported 2568.69 tons and 230.67 million baht of coffee beans, both slightly down 6 per cent from the same period last year, while imported finished coffee was 2758.01 tons worth 817.02 million baht, up 54 per cent and 66 per cent respectively compared with the same period in 2011 (see table I).
The Office of Agricultural economy estimates that Thailand's coffee bean harvest area in 2013 is about 279060 lai, with a total output of about 40070 tons, all of which will decline further. However, the average output of lai will continue to increase to 144 kg. It is worth noting that while there may be a decrease in the cultivation of Robasta coffee beans in the south, the acreage of Arabica varieties in the north is expected to increase.
● Thai Coffee Market
According to the survey, despite the gradual increase in coffee consumption in Thailand, the consumption is still at a low standard. The average person drinks only 130-150 cups of coffee per year, less than one cup a day; fewer than 2 million Thais have regular coffee drinking habits, a small proportion compared to Thailand's total population of 60m. It can be seen that there is still a lot of room for growth in the Thai coffee market.
At present, the demand of Thai coffee market is about 60-70,000 tons, and is growing steadily (see Table 2). However, the domestic output is only more than 40,000 tons, and the gap needs to be made up by imports.
It is well known that Brazil is the largest producer and exporter of coffee in the world. But Vietnam and Indonesia among the ASEAN countries are also the second and fourth largest coffee producers in the world (see table 3). It is estimated that Vietnam will be able to export about 1.2 million tons of coffee beans in 2012, valued at US $3 billion, among which ASEAN is also one of Vietnam's more valued markets.
Competition faced by Thai Coffee Industry in the era of ● AEC
After the entry into force of the ASEAN Free Trade Agreement (ASEAN Free Trade Agreement:AFTA) a few years ago, the tariff on imported finished coffee in Thailand has been reduced to 0%. Coffee beans are on the list of sensitive products (Sensitive list). The import tariff was reduced to 5% in 2010 and finally reduced to zero in 2015, when the ASEAN Economic Community (ASEAN Economic Community:AEC) was officially established.
Coffee beans from Vietnam and Laos are pouring into Thailand, especially after the establishment of the ASEAN Free Trade area and lower tariffs. Most of the imported coffee beans are Arabica, and their quality is higher than that of Thailand's main Robasta. Compared with Vietnamese coffee, the biggest advantage of Thai products lies in the quality of products. However, the output of Vietnamese coffee not only far exceeds that of Thailand, and the production cost is lower than that of Thailand, but also divides the products into a variety of grades according to their quality, and the quality of some products also has considerable advantages. Therefore, many experts and operators are more pessimistic about the future of Thailand's coffee industry after the establishment of AEC, and think that it is difficult to compete with imports from Vietnam, Laos and other countries.
Prepare for the era of AEC
How does ● deal with the competition of coffee market in AEC era?
Some experts and scholars suggest that in terms of production, we should improve production efficiency, achieve low cost, high output, good quality and balanced output. The relevant government departments work together to solve the problem of water conservancy and irrigation, and carry out investigation and research on the soil quality and weather of the whole country to find out the areas suitable for growing coffee. At the same time, it is also necessary to evaluate the planting capacity of coffee farmers and provide training assistance and technical support to coffee farmers who lack knowledge, experience or scientific and technological capacity.
The government should encourage coffee farmers to reduce the use of chemical fertilizers and pesticides and increase the use of organic fertilizers, which can reduce the chance of pollution of their products and help improve their quality. in addition, coffee should be intercropped with other agricultural products such as rubber. joint purchase of seeds, fertilizers and other raw materials with coffee farmers in the region will help to reduce costs. The relevant scientific research departments should also improve the varieties of Thai coffee, which can improve the yield and quality.
According to a survey conducted by the Thai Department of Agricultural Science and Technology, the yield in the coffee growing area of Luobasta in southern Thailand is relatively low, because some old coffee trees aged 10-20 years have not been eliminated. In order to increase the yield, coffee farmers are advised to cut down and replant. Through subordinate units, the Department of Agricultural Science and Technology has set up coffee planting model fields in various important coffee production bases for local coffee farmers to participate in the research and development and promotion of coffee planting science and technology, so that coffee farmers can learn effective planting techniques and methods from practice. Through a series of targeted measures, the Department of Agricultural Science and Technology believes that it can effectively increase production, reduce costs, and prepare the Thai coffee industry to cope with more fierce competition before the arrival of the AEC period as soon as possible.
In addition, the private coffee industry is also looking for a way out, and some companies are trying to change the direction of investment and go to Laos to invest in the coffee bean industry, which is gradually expanding.
In terms of the market, the government should follow the standards of Thai rice, set standards for Thai coffee in terms of color, aroma and taste, and publicize it widely. Support the Thai coffee industry to build their own brands and help promote the awareness of local brands in Thailand. Improve the competitiveness of Thai coffee in domestic and foreign markets.
All in all, if Thai coffee wants to get rid of its disadvantages and compete with its competitors in neighboring countries, coffee farmers must reduce production costs, improve production technology, and increase output per Thailand as soon as possible; on the other hand, they still need to start from the aspects of quality and product standards. launch high-quality, high-grade products with international standards and Thai characteristics. With the 2015 AEC era approaching, the situation is imminent, the relevant changes and response preparations need to be carried out as soon as possible.
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