STiR coffee and tea magazine

STiR coffee and tea 45 Ngwe Tun (left), founder of Genius Shan Highlands Coffee, says that accessing trade financing, skilled labor shortages, infrastructure issues, and the rising price of raw materials are just some of the difficulties he regularly deals with. Photo courtesy Genius Shan Highlands Coffee Producers in Myanmar experiment with different washing and processing techniques in a constant effort to improve the quality of Burmese coffee. Photo courtesy Genius Shan Highlands Coffee Inflated Price Although Myanmar coffee is exported to Europe and America with a higher price tag, it has not affected the market for lo- cal coffee roasters. However, there is a supply-side price issue, as coffee prices are up 70% compared to last year. So, while the current coffee price hike is ben- eficial for coffee farmers, it makes it diffi- cult for most coffee roasters in Myanmar to collect and obtain the quality coffee produced in the country. "The price of the main ingredient has gone up," con- cludes Win. As of January 10, 2024, the price for one kilo of green coffee beans was 26,000 kyats ($12.4). In 2021, the price of com- mercial-grade green beans was 3,125 kyats ($1.49) per kilo, a difference of approxi- mately 732%. Political issues and the de- preciation of the Burmese currency are the main reasons for the drastic price spike. In the past, Myanmar coffee was cheaper than other countries, but due to systematic investment, the price in- creased. It was cheaper because it was made without any capital investment. Thirty percent of investments in coffee farming made in the last few years be- long to foreign businesses, while 70% are made by local investors. Homegrown Global Ambition Presently, there are over 200 coffee roast- ers and 40,000 coffee shops in Myanmar, respectively. Almost 30,000 shops are located in 4 major cities: Yangon, Man- dalay, Nay Pyi Taw, and Taunggyi. There are over 200,000 coffee farming families, and more than 300 estimated coffee pro- cessing companies. One of them is Ge- nius Shan Highlands Coffee (officially known as Aung Nay Lin Htun Co., Ltd). The company can process 720kg of green beans per day (6 hours). Their processing styles are 60% washed, 30% honey/dry natural, and 10% fancy style (co-fermenting). Aside from coffee processing, Genius Shan High- lands Coffee offers franchising oppor- tunities, consulting and training, private label packaging, and coffee origin tours. The company is a member of various professional coffee organizations. When STiR asked how these organizations con- tributed to upgrading operations, Ngwe Tun, founder of Genius Shan Highlands Coffee, said two things: standards of cof- fee quality and networking with industry leaders. Trade financing, a shortage of skilled labor, infrastructure issues, and the price increase of raw materials are the biggest challenges Tun faces. At present, they only have electricity for eight hours a day. As a result, they must use a generator to power operations, which increases opera- tional costs. Genius Shan Highlands Coffee ex- pects to export to Japan, China, Korea, the United States, Norway, Hong Kong, Tai- wan, Thailand, Singapore, and Australia. According to Tun, the current do- mestic market prefers a medium-dark roast and balanced coffee profile. In the future, the market may change to more flavor-oriented coffees with a lighter roast. The team at Genius Shan High- lands Coffee predicts a 30-40% growth in the local market. The company plans on expanding its presence in the Middle Eastern and European coffee markets. It's also con- sidering innovations in processing, stor- age, and roasting to satisfy international trends. Gender on the Agenda As the Myanmar coffee industry grows, inclusion and diversification become in- creasingly important. For instance, The Lady Specialty Coffee was established in 2017 in Ywa Ngan, an exceptional coffee- producing region in southern Shan State. They started by supporting 50 female farmers, now the figure has reached 400. Some of their farmers are part of the Pa O, one of the smallest minority groups in Myanmar. They also have Danu ethnic farmers. The Lady Specialty Coffee helps the Ywa Ngan coffee community with a 20% profit share for every product they sell. Production scale was 45 tons of green beans in 2021. They mainly export green beans, which have received exceptional cupping scores ranging from 85-88, and aim to produce 200 tons of green beans in 2025. The Lady Specialty Coffee cur- rently exports to the UK, the US, Japan, Germany, Singapore, South Korea, the UAE, the Czech Republic, and Australia. Rising to the Challenge Besides the above industry challenges, the country's continuing civil war and devastating 7.7 magnitude earthquake in March 2025 leave Burmese coffee pro- ducers in a difficult situation. However, they have hopes for a brighter future and believe in the continuing expansion of coffee exports. Now is Myanmar's time to shine.

• Cover