Coffee industry of Timor Leste

Since the introduction of coffee by the Portuguese in the 1800s, the industry contributes a sizeable portion of the country's employment and investment and is a major source of income for rural communities.

Whilst by the definition of Timorese law means this defaults to the state, it is often turned a blind eye to because of the economic contribution of production.

In December 2016, the ADB approved a $225,000 grant to help reduce poverty in Timor-Leste by funding long-term improvements in the volume and quality of coffee produced by smallholder farmers.

[7] Moreover, these grants by global agencies enable coffee producers to reinvest in critical production infrastructure and create an industry of self-sufficiency, seasonal employment, stable income, and long-term economic growth.

Furthermore, creating a unique blend that can remain amongst the harsher conditions of Timor, and yet retain properties of coffee quality “among the best in the world”.

[citation needed] The largest single source to numerous rural families remains coffee, and it also represents one of the strongest facets of employment in the nation.

These problems, however, are to a lesser extent than nations which have made larger capital investment in coffee plantations and subsequent infrastructure.

New roadways will promote rural development and grant greater access to coffee producers to expand production, and further the sector into larger global markets.

What remains a major concern for the viability of further market capitalisation by the Timorese-based industry is that whilst the quality of the coffee is on the rise, it does not yet reach the best of international standards.

[7] Another factor is the relatively high labour costs in Timor Leste, as compared to nations such as Indonesia and other Southeast Asian countries.

In combination, these factors constrain Timor Leste's coffee market's ability to make their product internationally competitive in relation to price.