PHNOM PENH: Lao farmers are changing coffee’s nickname "black gold” into a golden industry, redefining the rural economy that feeds nearly 300,000 workers in the mountainous regions.
Diligent farmers are transforming the Lao coffee industry into a multimillion-dollar sector that mostly grows Robusta coffee and some Arabica varieties in the southern Bolaven Plateau.
Last weekend, along with France and the European Union (EU), Laos launched the 2026 International Tea and Coffee Day themed "Two Brews, One Culture” in Vientiane.
"With the unique quality of Lao coffee and tea increasingly in demand globally, this festival served as a powerful platform for networking and expanding market access for local producers,” Agriculture and Environment Minister Dr Linkham Douangsavanh said at the event, as reported by Vientiane Times on Thursday (May 28).
Laos policymakers are positioning coffee as a strategic crop, not only to generate revenue but also as a sector to create jobs for the country’s young demographic of about 7.9 million people.
The landlocked nation exported over 50,000 tonnes of coffee worth about US$100 million (RM397 million) in 2024, according to Vientiane Times.
As Laos plans to exit the Least Developed Country status by the end of 2027, the emerging coffee sector will be critical to propel its economy, which largely depends on electricity exports and its tourism sector.
Last year, tourism raked in US$1.4 billion (RM6 billion) with about four million international tourist arrivals, while electricity sales to neighbouring countries like Cambodia, Thailand, and Vietnam generated about US$2 billion (RM8 billion).
The Food and Agriculture Organisation of the United Nations (FAO) describes coffee as one of the most widely consumed beverages across the world, and one of the most globally traded commodities.
The largest coffee-producing countries are Brazil, Vietnam, and Colombia, while the EU and the United States (US) are the largest consuming and importing markets.
Annual revenues from the global coffee industry amount to US$200 billion (RM793 billion), according to the organisation.
Coffee cultivation has also played a pivotal role in replacing opium poppy farming among rural communities in Houaphanh Province.
With support from the United Nations Office on Drugs and Crime (UNODC), the government of Laos successfully encouraged farmers to abandon poppy cultivation and transition to coffee.
About 900 families have now benefited from the sustainable alternative livelihoods project that has been providing a steady income since 2015 in the mountainous northeastern Houaphanh Province.
Laos coffee exports reach about 20 international markets.
At the event, EU Ambassador to Laos Mark Gallagher said the EU is one of the world’s largest import markets for tea, highlighting another opportunity for Lao farmers.
"European consumers are increasingly seeking authentic, organic, and sustainably sourced products. Lao tea, with its rich identity and unique character, is well positioned to benefit from this growing demand.” - Bernama
