Malaysia To Boost Development Of Coffee Industry Due To As High Import, Low SSR

KUALA LUMPUR, Dec 3 (Bernama) -- Malaysia still relies on coffee bean imports to meet domestic demand due to the low self-sufficiency rate (SSR), despite various efforts being made to increase local production.

Agriculture and Food Security Minister Mohamad Sabu said that in 2024, the SSR of coffee was recorded at 33.2 percent, thus showing the need to import coffee beans to meet the demand of the local market.

"Malaysia imported 126,062 metric tonnes of coffee beans in 2024 to meet the needs of the industry and consumers. This importation mainly involved Robusta and Arabica varieties because local production is limited," he said during a question and answer session at the Dewan Negara today.

He was responding to a question from Senator Datuk Rosni Sohar on why Malaysia still imports 90 per cent of its coffee beans even though the domestic coffee market is worth over USD 1 billion, as well as the ministry's efforts to increase local production and support smallholders who are facing high costs and low productivity.

According to Mohamad, coffee cultivation concentrated in Johor, Sabah and Sarawak includes three main varieties, namely Liberica (87 per cent), Robusta (10 per cent) and Arabica (3 per cent), involving a total area of ​​2,924 hectares with a production of 2,861 metric tons in 2024.

He said the Ministry of Agriculture and Food Security (KPKM) through the Department of Agriculture (DOA) was committed to supporting smallholders through various in-kind incentives, including planting materials, fertilizers, farm equipment, pest control and post-harvest facilities.

Under the 12th Malaysia Plan (12MP), RM4.5 million was allocated to develop 300 hectares of coffee areas involving 270 farmers, while implementation continued under the 13MP with an allocation of RM5 million for the same area.

“In 2026, RM1.5 million will be allocated to strengthen the development of this industry,” he said.

Mohamad said efforts also included replanting old trees and restoring abandoned plantations using more productive varieties such as the Liberica MKL5, MKL6 and MKL7 clones, in addition to training, technical guidance and management support to help farmers adopt modern and sustainable methods.

The development of the local coffee industry also included research and seed improvement through collaboration with MARDI.

He said efforts were underway to explore new superior varieties, including MKL-8, MKL-9 and MKL-10, which were currently in the development and testing period with research institutions to ensure that the potential yield and uniformity of harvest could be utilised by smallholders.

Responding to concerns about coffee prices in the market, he stressed that prices were not determined by state but depended on the cost of production, processing and product quality.

To attract the interest of the younger generation, the ministry also provided start-up assistance, including grants of up to RM50,000 for those who wanted to venture into the industry.

-- BERNAMA