Malaysia's coffee market hits US$1.05 billion amid global supply challenges
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin highlighted the sector's growth while addressing external pressures affecting global supply chains.
Speaking at the 24th Malaysian International Food and Beverage Trade Fair (MIFB 2025) and Malaysia Cafe Expo (MCE), Chan emphasised the need to expand local coffee cultivation.
'Strengthening our own production is the way to ensure the cafe economy continues to thrive while positioning Malaysia as a credible origin in the global coffee trade,' he said.
Key coffee-growing regions in Malaysia include Pagoh, Johor, and Ranau, Sabah. Chan urged local planters to capitalise on the crop's potential, despite coffee not falling under his ministry's direct purview.
Global coffee supply chains are under strain, with Brazil's 2024 Arabica harvest shrinking by 12% due to El Nino-induced droughts.
Additionally, the Red Sea crisis has forced shipping reroutes, adding US$0.12 to US$0.15 per pound to coffee arriving at Port Klang.
These disruptions have driven the International Coffee Organisation's composite price indicator up by 94.6% in just one year.
Chan also noted the symbiotic relationship between coffee and bakery products, which rely heavily on palm-based ingredients like margarine, shortening, and cocoa butter equivalent (CBE).
'This reinforces how Malaysia's palm oil industry is deeply interwoven with the rise of coffee culture and the cafe economy,' he said. - Bernama
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