Dili, May 28, 2019 (Lusa)
Timor-Leste wants to double coffee production and triple its export value over the next decade, supported by an investment plan of nearly $40 million (approximately €36 million).
Production and Export Targets
“The goal is to move from the current 10,000 tons of annual production to 20,000 tons by 2020, with a value rising from US$27 million to US$73 million (approximately €65 million),” said Fernando Santana, Director of Coffee and Industrial Plants at the Timorese Ministry of Agriculture and Fisheries.
The targets were announced at the launch of the National Plan for the Development of the Coffee Sector 2019–2023 (PNDSC). The objective is not only to increase quantity but to ensure a larger share of production reaches higher quality tiers, commanding better prices.
Quality Shift Strategy
A central pillar of the plan is shifting the quality composition of Timorese coffee output:
| Price Tier | Current Share | Target Share |
|---|---|---|
| Premium (above $5/kg) | 2% | 20% |
| Mid-range ($3–$5/kg) | 34% | 60% |
This shift is expected to drive a significant increase in sector income without relying solely on volume growth.
Importance to Timorese Society
Joaquim Gusmão Martins, Minister of Agriculture and Fisheries, described the plan as “comprehensive, ambitious and with a long-term vision,” designed to involve the public sector, private sector, and development partners.
Coffee is deeply woven into Timorese history and identity. Key social facts:
- One-third of Timorese families depend on coffee
- 20% of households have direct income from coffee production
- Many producers currently live with high food insecurity due to poor yields and low prices
Despite being the country’s most exported product, coffee in East Timor remains “far short of its long-term potential,” leaving many producers in poverty and malnutrition.
Challenges Identified
The plan identifies a range of structural problems holding the sector back:
- Below-potential yields and inconsistent quality
- Poor sector management and coordination
- Low inclusion of smallholder farmers
- Little applied agricultural research
- Uncertainty around land ownership
- Impact of climate change on production
- Poor rural roads and infrastructure
- Low adoption of good agricultural practices
- Limited participation of young people
- Weak branding and market positioning
- Little data collection and few income channels
Competitive Strengths
The plan also highlights Timor-Leste’s natural advantages:
- The Timor Hybrid — a unique and under-exploited genetic variety
- Strong organic and private-sector production base
- Suitable altitude and climate for both Robusta and Arabica varieties
- Diverse microclimates and topographies that support a wide range of flavour profiles
Plan Pillars
The PNDSC strategy is built around the following priorities:
- Strengthening agricultural research programmes
- Implementing best cultivation practices across farms
- Expanding total hectares under coffee production
- Improving quality focus and value-added processing
- Increasing supply chain efficiency for the domestic market
- Building links with regional and global buyers
- Developing a vibrant local retail coffee industry
- Connecting coffee culture with the tourism sector
- Improving management capacity and data collection
The overarching aim, in Santana’s words, is to “foster the profitable sustainability of coffee in order to improve living conditions and foster economic growth” across the country.