Imported coffee set to increase

A shortage could affect the Bt20-billion market.

Prasopsuk Suttapirom, Nestle's business manager for coffee and beverage products that includes its Nescafe brand, yesterday said the quota allowed for imported raw coffee for all local manufacturers was very small, at approximately 50 tonnes, which cannot make up for the shortfall.

"We [many coffee manufacturers] have discussed the issue among ourselves and we shall petition the government soon," Prasopsuk said.

"A delay to increase the quota would result in a shortage of raw coffee for manufacturers and that could gradually reduce the amount coffee available in the market for three years.

"The effect could be that overall consumption would eventually be reduced. With a shrunken market, the danger would be weak demand to support the next coffee crop. Local coffee mostly comes from the northern, southern and northeastern regions."

Thailand's coffee consumption is relatively high with 200 cups per person per year, which is the second highest for tropical countries after the Philippines. Demand also appears to be on the rise.

Prasopsuk said local demand showed two-digit growth last year while the overall economy experienced a downturn.

The current raw coffee price appears to be buoyant at Bt67 per kilogram when compared with Bt50 last year.

Nestle has increased prices for instant coffee by 2.8 per cent. Its three-in-one coffee was also raised by 3 per cent.

Prasopsuk said the government need not fear imports would jeopardise local coffee growers, who should be able to meet local orders in three years.

Nitida Asawanipont

The Nation