Speciality coffee prospects brewing nicely
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Speciality coffee prospects brewing nicely

As aficionados become increasingly selective when it comes to their cup of Joe, this provides an opportunity for Thai coffee producers to step up to the mark

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Mr Ayu examines some plants at a coffee plantation in Chiang Mai. He sees an exciting opportunity for Thailand as global demand is leaning towards quality coffee.
Mr Ayu examines some plants at a coffee plantation in Chiang Mai. He sees an exciting opportunity for Thailand as global demand is leaning towards quality coffee.

As consumers become increasingly sophisticated about their cup of Joe, this trend may create opportunities for niche segments such as speciality coffee.

While Thailand is not a major coffee exporter, its coffee market is valued in the tens of billions of baht. The country has the ability to set itself apart on the international stage by focusing on the speciality coffee sector.

According to the Specialty Coffee Association (SCA), coffee products with a variety of characteristics may influence buyers.

Some of these traits are intrinsic such as the chemical composition, physical structure, appearance and sensory qualities, while others are extrinsic and require additional information to be revealed.

When it comes to selecting coffee, extrinsic attributes include traceability and certification, which cover where and how the coffee was produced and by whom, the variations on offer, the method of processing, and the impact of the production process on the environment and local people.

The SCA defines speciality coffee as a coffee or coffee experience recognised for its distinctive qualities, resulting in a higher market value.

left  Ms Naowarat evaluates a batch of coffee beans. She plans to establish a coffee academy in Udon Thani by late this year or early next year.

Ms Naowarat evaluates a batch of coffee beans. She plans to establish a coffee academy in Udon Thani by late this year or early next year.

Signs of the times

Ayu Chuepa, the founder and owner of Akha Ama, a social enterprise coffee brand in Chiang Mai, said Thailand may not produce a sufficient volume of coffee to compete with the world's leading exporters such as Brazil, Colombia, Vietnam, Honduras and Indonesia, but there is certainly an opportunity for Thailand as the trend in terms of global demand is leaning towards quality coffee.

Mr Ayu said if Thailand focuses on improving every aspect of its coffee production from cultivation, soil quality and farming practices to the people involved, and incorporates innovation along the way, it will be able to elevate the value of Thai coffee and provide new opportunities in the global market.

Coffee sales in Thailand extend beyond local consumers as the country is a leading tourist destination, and many foreign tourist arrivals are also coffee enthusiasts, he said.

The Specialty Coffee Association of Thailand estimates that Thailand's speciality coffee market is worth around 2 billion baht a year.

Naowarat Khuwatchanakul, the founder and owner of Dose Espresso and Dose Factory, two Aussie-Thai northeastern-style coffee shops in Udon Thani province, has observed significant changes in the province's coffee landscape.

She said the coffee shop business is now in a growth phase, with coffee enthusiasts becoming shop owners while major chains are expanding.

Ms Naowarat said consumers in Udon Thani and across Asia are becoming more knowledgeable about coffee, paying attention to the origin of the beans, brewing techniques and flavour profiles.

Over the last few years, coffee has evolved from being just a drink into a lifestyle element, she said.

This evolution has led to the emergence of shops seeking to establish unique identities. Some combine cafés with Thai restaurants or dessert shops, or build in-house roasting facilities, while others pursue speciality coffee.

Only about 10% of cafés in Udon Thani are considered to be speciality coffee shops, said Ms Naowarat.

She said she anticipates the number of speciality coffee shops to grow in the future.

"We've noticed a greater attention to design and brewing techniques. Many cafés are eager to differentiate themselves, but it does not mean they all adhere to speciality coffee standards," said Ms Naowarat.

Spreading the word

Ms Naowarat revealed that she plans to establish a coffee academy by late this year or early next year.

Dose Coffee sources 60-70% of its beans locally, with 80% of its Thai coffee coming from Mae Suai in Chiang Rai through a partnership that has existed for more than a decade.

The rest comes from Udon Thani, where the company collaborates with local farmers to improve the quality of the beans.

"In the past, coffee produced here was often overlooked and used for instant products. With proper support and education, we can improve it," she said.

Ms Naowarat pointed out that most expertise in speciality coffee is concentrated in Bangkok, as the majority of both learners and educators are based there. However, she sees a growing interest in coffee education in the Northeast.

To meet this demand, she plans to open a small academy in Udon Thani, offering coffee training courses and service skills. The goal is to collaborate with institutions in Bangkok and other coffee networks in the region.

She said the academy will host certified coffee experts and collaborate with relevant sectors such as the restaurant sector.

She hopes that in the future staff from Dose Coffee will also deliver training sessions externally.

"We want to build a coffee community that encourages the exchange of ideas. This will create a local knowledge base, so people won't need to go to Bangkok to learn about coffee. We could then become a new centre for coffee expertise," Ms Naowarat said.

Rising to the challenges

Climate change has made the sourcing of quality beans more difficult, Ms Naowarat said.

Coffee requires mild conditions with dappled sunlight, but higher temperatures reduce the bean quality and alter the nutritional content.

In addition, rising bean prices may lead to stockpiling, making it harder for smaller cafés to secure supplies without facing higher expenses, she said.

Despite this, she believes higher prices can be advantageous for farmers who are investing in better growing practices. Her strategy is to focus on maintaining high standards when it comes to the quality of the beans.

Concern for farmers

Mr Ayu encourages people to see coffee not merely as a commodity, but to recognise the entire supply chain, including farmers, who often face significant inequality.

"We tend to forget the people behind our coffee. If we want to transform the industry, we must put people first," he said.

A barista makes latte art.

A barista makes latte art.

"We should ask ourselves why our coffee tastes good, and how we can maintain that quality for future generations," he said.

He observed that certain coffee-growing areas are facing the problem of overexploitation of the land, which may threaten future production capacity.

The good news is an increasing number of farmers are growing coffee with care, being mindful of both quality and the environmental impact, he added.

This commitment to sustainability aligns well with the values of speciality coffee, which include a focus on its environmental footprint and the benefits for everyone involved in the production process.

Akha Ama, which operates cafés in Chiang Mai and Tokyo, is collaborating with hundreds of farmers and others in the coffee value chain. The company also organises training events.

"These events are open to everyone, not just farmers who sell beans directly to Akha Ama, or those already certified in speciality coffee," he said.

Mr Ayu said Thailand's coffee industry is unique when compared with other coffee producing nations. In Thailand, consumers and brewers can easily connect with farmers, whether via social media or by visiting the farms, which are relatively accessible.

"Speciality coffee will transform the Thai coffee landscape in the future, driven by its growing popularity worldwide," he said.

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