The Economic Impact of Cambodia's Coffee Industry – Jobs, Growth, and National Development

Introduction: More Than Just a Drink

Coffee is one of the most traded agricultural commodities in the world. For developing economies like Cambodia, it offers a pathway to diversify agriculture away from low-value or single-crop dependence. The economic potential of Cambodia's coffee sector extends far beyond the cup – it encompasses jobs, rural development, foreign exchange, and national economic transformation.

The Scale of the Opportunity

Cambodia consumes an estimated 20,000 tonnes of coffee annually, yet domestic production supplies only around 1,000 tonnes. This leaves a substantial gap that is currently filled by imports. The Cambodia Coffee Association is working to expand cultivation to bridge this gap.

Job Creation Potential

The expansion of Cambodia's coffee sector carries significant socio-economic potential. Estimates suggest that expanding the industry could create 100,000 jobs and generate potential revenue of USD 500 million. These jobs would span the entire value chain – from farming and harvesting to processing, roasting, and retail.

Australia is supporting Cambodia to build a more resilient and inclusive economy, helping many farmers from indigenous communities earn higher incomes and creating sustainable jobs.

Reducing Foreign Exchange Outflow

Currently, Cambodia imports over 90% of its coffee, spending significant foreign currency on beans that could be produced domestically. Expanding local production would reduce these outflows and keep more value within the country.

Economic Diversification

Coffee offers Cambodian farmers an alternative to traditional crops like rice. Once mature, coffee plantations can generate several times more revenue per hectare than paddy rice, especially when beans are processed and sold as specialty or premium coffee. Coffee helps diversify agriculture away from low-value or single-crop dependence.

Indigenous Community Empowerment

Many coffee farmers in Cambodia come from indigenous communities, particularly in Mondulkiri province. The coffee industry provides these communities with income opportunities that help preserve their traditional way of life while participating in the modern economy.

The Role of Government

The Cambodian government recognizes coffee's economic potential. Senate Second Vice-President Thun Vathana has emphasized that expanding coffee cultivation can address the domestic supply-demand gap, create jobs, reduce foreign currency outflows, and transform Cambodia from a coffee importer to a producer and exporter. This transformation would contribute to economic diversification and national development.

The Path Forward

The economic impact of Cambodia's coffee industry is still in its early stages. With continued investment in cultivation, processing, and branding, the sector has the potential to become a significant contributor to Cambodia's economy, creating jobs, generating income, and reducing import dependence.