Coffee, husks, skins and substitutes market in Madagascar

Earlier Report Observations

From 2018 to 2019, local coffee production in Madagascar increased by over 11 000 tons, reaching 65 760 tons. This growth was primarily driven by high domestic prices, which reached 25 000 ariary per kilogram and incentivized farmers to sell more on the local market rather than for export. However, the sector remained under long-term pressure from international competition and the replacement of coffee plantations with more profitable crops like cloves and vanilla, which contributed to a sharp contraction in 2020. Production that year fell to 42 220 tons as the market adjusted, though efforts began to coalesce with cooperatives in the Vatovavy and Fitovinany regions uniting to produce 100% organic coffee, responding to growing local demand for such products.

A national strategy to revive the coffee sector took shape from 2021 onward, aiming first to cover local demand as domestic production no longer met needs. This focus, along with operators turning to the local market, supported a recovery in production to 46 401 tons in 2021. The momentum continued into 2022 with significant investments and new entrants. The launch of the EU-funded 'Café RATELO' project to improve Arabica quality, collaboration between FOFIFA and Nestlé to test new coffee varieties, and the establishment of the Zebu Coffee Estate specialty farm all aimed at enhancing quality and output. Concurrently, the new local brand Royal Café Zanatany entered the market. These initiatives helped lift production further to 50 532 tons in 2022, with the total market volume exceeding 51 500 tons.

Production stabilized around 49 300 tons in 2023. Ongoing efforts to revitalize the sector continued, including strengthened cooperation between the Ministry of Agriculture and the Inter-African Coffee Organization to promote the coffee value chain and the development of a national strategy to restore Madagascar's position on the international market. These actions occurred against a backdrop of declining national output, highlighting the need for improved agricultural practices from harvest to commercialization to address structural challenges in the sector.

Production coffee, husks, skins and substitutes in Madagascar

In kind, 2017-2020, t

Between 2017 and 2020, Madagascar ranked as the 21st largest global producer of coffee, including husks, skins, and substitutes.

Top producers of coffee, husks, skins and substitutes, 2017-2020

World map of production of coffee, husks, skins and substitutes, 2017-2020

In 2020, Madagascar produced 42 220 tonnes of coffee, husks, skins, and substitutes, marking a 35.8% decrease from 2019. Over the 2017-2020 period, production fell by 29.2%, with an average annual decline of 10.9%. The peak production occurred in 2019 at 65 760 tonnes, which also saw the largest annual increase of 20.6%.

Annual dynamics of production in Madagascar in kind, 2017-2020, t

Exports coffee, husks, skins and substitutes from Madagascar

Exports in kind, t

Export volumes showed significant fluctuations during this period. The lowest point was in 2018 at just 1 tonne, with the largest decline of 100.0% that year. In 2019, exports surged dramatically by 43 976.2%, reaching a peak of 3 134 tonnes in 2020—a massive 1 203.9% increase from 2019. Overall, exports varied by a factor of 5 747 between the minimum in 2018 and maximum in 2020.

Annual dynamics of product's exports from Madagascar in kind, 2017-2020, t

From 2017 to 2020, Morocco and France were the dominant export markets for Madagascar's coffee, husks, skins, and substitutes, together accounting for 86.2% of total export volumes, while other countries made up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Madagascar in kind, 2017-2020

Exports in value, K $ US

Export values experienced notable volatility. The lowest value was recorded in 2018 at 4 thousand US dollars, with the largest decline of 99.9% that year. In 2019, values jumped by 7 662.3%, peaking in 2020 at 4 014 thousand US dollars—a sharp 1 054.8% increase from 2019. The gap between the 2018 low and 2020 high was 896-fold.

Annual dynamics of product's exports from Madagascar in value, 2017-2020, K $ US

Between 2017 and 2020, Morocco and France were the primary buyers of Madagascar's coffee, husks, skins, and substitutes in value terms, jointly representing 88.8% of total export earnings, with other destinations contributing smaller shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Madagascar in value, 2017-2020

Imports coffee, husks, skins and substitutes to Madagascar

Imports in kind, t

Import volumes displayed irregular patterns, reflecting a volatile market. The highest volume was in 2018 at 2 581 tonnes, with the largest increase of 694.8% that year. By 2020, imports dropped to 67 tonnes, a steep 92.3% decrease from 2019, marking the lowest point. Overall, imports varied by 38-fold between the 2018 peak and 2020 low.

Annual dynamics of product's imports to Madagascar in kind, 2017-2020, t

Throughout 2017-2020, Kenya and Uganda served as the main sources for Madagascar's imports of coffee, husks, skins, and substitutes in volume terms, together making up 85.7% of total imports, while other countries had more modest shares.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Madagascar in kind, 2017-2020

Imports in value, K $ US

Import values showed signs of volatility. The peak was in 2018 at 5 351 thousand US dollars, with the largest increase of 490.4% that year. By 2020, values fell to 381 thousand US dollars, an 81.6% decline from the previous year, representing the lowest point. The difference between the 2018 high and 2020 low was 14.1-fold.

Annual dynamics of product's imports to Madagascar in value, 2017-2020, K $ US

From 2017 to 2020, Kenya (43.5% of import value), Uganda (28.6%), and Italy (12.5%) formed the core of Madagascar's imports of coffee, husks, skins, and substitutes in value terms, collectively accounting for 84.6% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Madagascar in value, 2017-2020