Vietnam and Myanmar Team Up to Update Aging Coffee Plantations

Vietnamese agricultural investors are shifting focus toward revitalizing decades-old coffee farms in Myanmar, aiming to reverse declining yields caused by aging trees. With coffee prices under pressure and production stagnating, the move targets one of the region’s oldest and least productive coffee regions—where over 30% of planted trees have surpassed their economic lifespan.

In total, 8,000 hectares of coffee trees are now too old to remain viable. These must be replaced within three years using new plantings, while the project also maintains 20,000 hectares of rubber trees. The work is primarily funded through bank loans.

Current Coffee and Rubber Farming Footprint

The investor currently manages 25,000 hectares of coffee and 20,000 hectares of rubber across Myanmar. That breaks down to a large-scale intercropping and monoculture operation spread over multiple regions, with coffee representing the larger land use. But not all that coffee is productive: nearly a third of the coffee area—8,000 hectares—is planted with trees considered past their optimal production age.

Why Coffee Trees Become Unproductive

Coffee trees typically remain economically productive for 20 to 25 years, depending on variety, altitude, and farming practices. After this period, yields drop significantly, pest susceptibility rises, and input costs often outweigh returns. In this case, 8,000 hectares have reached that point and require full replanting to restore viable production levels.

Replanting Costs and Funding

Replanting coffee requires significantly higher upfront investment than rubber. The cost to establish coffee stands is 200 million Vietnamese dong per hectare (approximately $1,200), while rubber costs just 50 million dong per hectare (around $300). The funding for this 8,000-hectare coffee replanting initiative, along with ongoing rubber maintenance, comes overwhelmingly from bank loans rather than private equity or grants.

Project Scope and Timeline

The overall farming portfolio includes 25,000 hectares of coffee and 20,000 hectares of rubber. Within the coffee segment, 8,000 hectares are now classified as aged and nonviable. These 8,000 hectares must be entirely replanted within the next three years, implying an annual replanting target of roughly 2,667 hectares. The rubber component remains stable with no indicated changes.

Frequently Asked Questions

How many hectares of coffee trees need replanting in Myanmar?

Eight thousand hectares of coffee trees are considered aged and unproductive, requiring replacement within three years.

What is the difference in planting cost between coffee and rubber?

Coffee costs 200 million Vietnamese dong per hectare (about $1,200) to plant, while rubber costs 50 million dong per hectare (around $300).

Who is funding the coffee and rubber replanting in Myanmar?

The investment is primarily financed through bank loans, not private investors or government subsidies.

How much coffee and rubber land does the company currently manage?

The company currently has 25,000 hectares of coffee and 20,000 hectares of rubber under cultivation in Myanmar.

Why are old coffee trees a problem?

Aged coffee trees yield less coffee, are more prone to disease, and cost more to maintain relative to their output, reducing overall farm profitability.

What is the timeline for replacing the aging coffee trees?

The 8,000 hectares of aging coffee trees must be replaced within the next three years.

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