Assessing the economic viability of Liberica, Robusta and Arabica coffee in Malaysia

Nik Rahimah Nik Omar, . and Aimi Athirah Ahmad, . and Nurul Huda Sulaiman, . and Bashah Ahmad, . (2024) Assessing the economic viability of Liberica, Robusta and Arabica coffee in Malaysia. Economic and Technology Management Review, 23. pp. 63-75. ISSN 1823-8149

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Abstract

The Malaysian coffee industry faces a range of challenges and opportunities. The rising costs of inputs, labour shortages and fluctuating global coffee prices have intensified financial pressures on coffee farmers in Malaysia. The lack of clear cost structures for different coffee varieties such as Liberica, Robusta and Arabica adds to the uncertainty regarding profitability. This study provides a detailed analysis of coffee production costs in Malaysia, focusing on the economic sustainability of the sector. Data were collected through face-to- face surveys using a structured questionnaire, involving 30 farmers who cultivate Liberica, Robusta and Arabica coffee. Among the varieties, Liberica coffee demonstrates the greatest economic viability, commanding higher prices and yielding better f inancial returns compared to Robusta and Arabica for both coffee berry and coffee bean. Liberica coffee beans offer favourable net profits, shorter payback periods, superior Net Present Value (NPV) and Internal Rate of Return (IRR). In contrast, Robusta and Arabica face profitability challenges at the berry stage, with negative profits and extended payback periods, making them less attractive without added value processing. The study recommends that farmers should focus on processing coffee berries into beans to maximise profitability. Policymakers are encouraged to support investments in processing infrastructure through grants, subsidies, and technical assistance, particularly in rural areas. Such support would enhance financial outcomes for farmers, strengthen Malaysia’s coffee industry and boost the country’s position in global coffee markets.

Item Type:	Article
Creators:	Nik Rahimah Nik Omar, . and Aimi Athirah Ahmad, . and Nurul Huda Sulaiman, . and Bashah Ahmad, .
Title:	Assessing the economic viability of Liberica, Robusta and Arabica coffee in Malaysia
Date:	2024
Location:	Economic and Technology Management Review website
Publication:	Malaysian Agricultural Research and Development Institute
Volume:	23
Physical Description:	14p.
Agency Name:	Universiti Putra Malaysia (UPM)
Date Deposited:	02 Oct 2025 02:48
Last Modified:	02 Oct 2025 02:48
URI:	http://myagric.upm.edu.my/id/eprint/23686

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