Market Development Facility (MDF)’s Arabica Coffee Value Chain Analysis is a one-of-a-kind, in-depth analysis into Sri Lanka’s specialty Arabica coffee sector. The study collects information from bean to cup, charting the pathways to scale and identifying the opportunities for growth in the Arabica coffee sub-sector in Sri Lanka. The recommendations of the report can be used by all stakeholders to align their efforts to achieve sustainable growth in this niche industry.
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Sri Lanka’s coffee exports have increased, growing 84 per cent from 2017 to reach nearly USD 355,000 by 2019 as per Export Development Board (EDB) data.
Sri Lanka Coffee Timeline
1658
1658
Coffee was first introduced to Sri Lanka by the Arabic merchants.
Fun fact: coffee was introduced to Brazil Java, Cuba, Venezuela and Puerto Rico in the 17th century.
1739
1739
Sri Lanka records an export of 140,000 lbs green beans. This boost was contributed by the Robusta coffee promotions by the Dutch rulers (in areas like Galle and Negambo).
1790
1790
Dutch ignored the coffee economy
1810
1810
British took a very strong focus in to creating a coffee based, outward looking export economy. Railroads, plantation expansions were the key areas.
1826
1826
Recorded an export volume of 2 million lbs of green beans. Start of the peak
1864
1864
Hamelia vasterix (rust) hit the country and wiped out most of the plantations
1878
1878
In 1860s, 185,000 acres produced over 1 million lbs of green beans. 275,000 acres in 1878 could only yield 610lbs. (cultivation almost doubled but the production was a fraction)
1879-1884
1879-1884
Global great depression which demobilized the global coffee economy including the bloom in Sri Lankan coffee economy
1900
1900
Coffee sector in survival mode. Tea was introduced in the late 18th century to substitute coffee.
1968
1968
Sri Lanka signed the International Coffee Agreement. This benefitted SL to step up its export volumes
and fetch better prices.
1972
1972
Establishment of the Department
of Export Agriculture
1973
1973
Sri Lanka re-emerges as a coffee exporter.
1974
1974
FOB average price per kilo of coffee – Rs 4.98, which supported the exporters
1979
1979
Reaches the peak of exports before declining again. Recorded an export of 2.6 million kgs and slumps greatly
1983
1983
A significant peak was observed due to improved prices and improved volumes. Export volume was 3.1 million kgs of green bean
1985
1985
Current acreage of cultivation is at 30,000 acres
1986
1986
Robusta home gardens.
Sri Lanka is well positioned geographically and climatically to produce high-quality specialty coffee and take advantage of growing global demand.
Sri Lanka Coffee Imports and Exports
Sri Lanka Coffee Production
Sri Lankan coffee productivity has stagnated. The figure below charts annual performance for Arabica and Robusta coffee combined. Research suggests that the industry is functioning at a sub-optimal level and that there is a sizeable margin for growth. Efforts to increase the supply are underway, with both the government and private sector investing in planting Lakparakum in conducive regions throughout the country. However, given the lag time between planting and harvesting (typically two to three years), it will take some time for the production figures to reflect the expanded area under cultivation.
