Is Planting Coffee in Sarawak Viable?

A handful of people asked me if we had anything to do with the large-scale coffee plantation project that they saw on the recent newspaper because a photo of ours (with our products and logo) was published along with the article. Thus I want to first disclaim any association Earthlings Coffee has to the said project. Our MOU with the Sarawak government signed last year at the symposium main entails marketing and exporting Sarawak coffee.

All this while we have only been focusing on projects related to specialty coffee and its cultivation such as coffee education, quality classification, and support local cultivators in enhancing the quality of their produce. We hosted the Borneo Coffee Symposium last year where local and international coffee experts came to share their knowledge and experience about coffee cultivation. However, our focus was limited to small-scale, high-quality coffee production. We do not have the knowledge nor the experience to advise commercial coffee production that involves ten of thousands of acres of land, such projects are to be handled by the Department of Agriculture or other professional organisations.

Like I always say, unlike pepper, rubber, and oil palm, coffee prices are not as uniform. There is no standard answer to “how much per ton?”. One will have to reference Vietnam Arabica for the cheapest commercial price range, which is USD 2-3/kg, which is difficult for locals to compete due to their significantly lower cost.

Coffee prices are highly dependent on the taste of and the market segment it serve. To achieve the higher end demands vast attention in meeting the right conditions such as species, soil, microclimate, processing, storage, transportation, etc. The price of different qualities can range from USD 2.5/kg to USD 1000+/kg in an auction. The trends of coffee are always changing, and market demands for commercial and specialty coffees are fundamentally different. Knowing where to position yourself in the market is essential even in the planning phase.

Recently, I’ve been asked a lot about the suitability of planting coffee, or more specifically, Arabica and Liberia coffee in Sarawak. This isn’t a simple “yes or no” answer. Therefore, I have enlisted here some crucial information which I can offer to these potential local farmers and investors as free advice.

1. Is it possible to plant Arabica coffee in Sarawak? Technically yes, but only for fun if you plant them on flat land. If your goal is to export commercially, then you must meet the higher standards for international coffee trade. Commercially sound Arabica coffees are usually cultivated in the high altitude of 1000-1800 meters above sea level (MASL). It’s more advisable to plant higher in Sarawak as it is on the equator with constant heat and high humidity, and a low temperature difference between night and day. Transportation would be another challenge for such plantation. 

2. To my knowledge, most Arabica-producing countries are facing production issues brought by climate change and increasing pest. Only countries such as Brazil can counter some of these issues by growing large quantities in broad highlands (such as Cerrado) at 600-800MASL and harvest with machines to reduce cost. Sarawak mountains are usually very steep, which is better to take the quality-focus approach in smaller quantities when it comes to coffee cultivation.

3. Even though we have been advocating shade-grown plantation at a lower altitude as a quality-focus, sustainable practice as one of the effects is to slow down the growth cycle of coffee trees, allowing more time for nutrients to be absorbed by the trees before they reach maturity, but that also means you will have less productivity per acre of land. Also, a lower altitude may increase the likelihood of attracting pests. 

4. A great amount of care is needed when planting Arabica’s that isn’t in the Bourbon line or a hybrid for the following reasons. Plantation soil in rainforest tends to lose nutrients and grid due to frequent heavy rains. Soil tends to be acidic in many regions. Drastic changes in the environment brought by the Monsoon seasons could also disrupt the growth of delicate Arabicas. 

5. Before clear solutions are found to the problems mentioned above, growing coffee in large scale can be tricky unless we are confident with the quality and yield of such coffee plantation. And what edge do we have over the same quality and prices of coffees from our neighbours such as Indonesia, Vietnam, and the Philippines? We could sell the name to those who like to try out new things, but if we lack the quality and consistency, such a strategy may be a one-time thing.  

6. There is always the last resort of limiting imports to enforce local purchases, but these measures are neither beneficial to the options of consumers nor the development of producers in the long run.

7. The best harvest time for coffee can be as short as a few days, and it requires six to ten times more labour than usual. The window for processing after harvest is within hours. These are all critical conditions for large-scale, non-machinery plantations consider. The taste and quality of the coffee can be heavily affected if one misses the best timing for harvesting and processing. One would need to give much thought on arrogation arrangements so that coffee trees could fruit around the same time to reduce the cost of labour in multiple harvests.

8. On the other hand, Liberica can be cultivated in lowlands, but it also comes with five challenges: a) It’s more challenge to plant and harvest Liberica trees due to its unique botany traits, b) the yield of Liberica coffee after pulping is three times lower than that of Arabica and Canephora’s, c) the high humidity of rainforest makes moulding more prevalent unless one can process and dry the seeds on time, d) Liberica seems less profitable in the general coffee market given its low yield and difficulties in quality assurance, unless we focus on the niche specialty coffee market, e) how much value can local Liberica offer when compared to the commercial Libericas of Kalimantan and the Philippines when placed in the same market arena?

9. Although we can see some momentum in the acceptance of Liberica coffee internationally in recent years, it is not without strict demands in quality and consistency, as these are the two pillars of the specialty coffee market. Those that meet such demands are usually in total control over their production line, micromanaging at every stage, comparable to those in the wine industry. I recommend potential growers in Sarawak to take reference from My Liberica in West Malaysia, as they are experienced in producing the best quality of Liberica in Malaysia. However, if one is aiming for large-scale commercial-grade Liberica production, then one should learn from existing models of the commercial coffee production chain. And thinking along the line of blending Liberica as part of the ingredients of commercial formula. 

10. Considering all the environmental factors, a large-scale commercial coffee plantation in Sarawak should also consider cultivating Canephora as their primary crop and Liberica as secondary. If we were to take away anything from the history of coffee plantations in the 19th century, we should ask ourselves why Liberica had been widely replaced by Canephora, what are the socio-economic reasons behind?

11. So why did we advocate Liberica in the first place given all these limitations? Our goal and the original intent was to conserve and improve the existing Liberica coffee found in Sarawak and work with local farmers to gradually develop this species into a commercially sound product in a pace where quality can be controlled. This requires thorough planning and cooperations from different parties to develop the right technology, flavour qualities, and marketing strategy specifically aimed at the specialty coffee industry. We are, however, more reserved about growing Liberica in large scales, because that does not fall within our experience and planning capabilities. 

The purpose of Earthlings Coffee has always been to bring out the best in our coffee, culture, and humanity. As Sarawakians, we want to see the development of Sarawak coffee being economically sound while benefiting locals in various ways. Thus, we want to share truthfully what we had learned over the years regarding coffee plantation, hopefully, it can be beneficially to local cultivators and those at state.

Our views on the suitability of planting coffee in Sarawak is still optimistic, as long as we can recognise existing challenges and find relevant solutions. It is crucial to avoid mistakes because coffee takes three to four years from germination to its first harvest. Considering the investment of time and effort, long-term planning is essential for growers. They will need the right knowledge and guidance to create something exceptional under these extraordinary circumstances.

Lastly, we would like to thank both our Coffeologist Education partner from Germany, Dr Steffen Schwarz, and experienced coffee estate owner from India, Jacob Mammen, for coming to share with us their knowledge and experience without reserve during last year’s Borneo Coffee Symposium and Coffee Farmer’s Session. From their sharing, we’ve learnt that coffee cultivation is increasingly difficult world-wide, leaving a majority of existing coffee farmers in poverty. We need to spend more than just money when thinking about investing in coffee. It takes meticulous preplanning and precise execution to create a coffee plantation that is both profitable and sustainable.