Thai coffee faces boom and doom paradox
Chatree Saeyang is a third-generation coffee farmer in Chiang Mai.
Chatree says things are changing on his farm. The rain is becoming erratic, and the trees bend and shape to their environment.
It will play out when their cherries are ready for picking, as their flavour will change.
Chatree’s observation is not unique. Extreme weather is playing havoc with farmers’ ability to produce arabica coffee.
“The effects go beyond lower yields. It also causes quality to drop,” said Jiraporn Inthasan, a master trainer in regenerative agriculture at Maejo University. “In 20 years we might not have arabica in Thailand anymore. It won’t be possible.”
Cafes and roasteries are scrambling to get high quality beans. “It's almost silly at this point. You have to make a commitment to pay for coffee that is not even on the trees yet,” said Han Wang, co-founder of PHIL Coffee.
To meet the demand, Thailand will need to import. Coffee from non-ASEAN markets attracts an import duty of up to 90%. Roasteries and retailers are the ones bearing the raised costs, said Wang.
To justify higher costs, some cafes are framing specialty coffee more as an experience, said Wasin Kusakabe from Nana Coffee Roasters.
He said the industry is moving towards considering coffee a “luxury product” similar to wine and whiskey.
