Hon Murray McCully

Minister of Foreign Affairs

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26 August 2015

NZ aid to assist Timorese coffee and cocoa farmers

Foreign Affairs Minister Murray McCully has announced that New Zealand will commit $14.5 million over five years to help develop Timor-Leste’s coffee and cocoa industry.

“Coffee is Timor-Leste’s largest export after oil and gas, but productivity issues mean the sector performs significantly below its potential,” Mr McCully says.

“Almost 20 per cent of Timorese households rely solely on coffee for their income, but tree productivity is less than 20 per cent of the global average. New Zealand’s investment is aimed at lifting the overall productivity of the sector and returns to producers.

“The Coffee and Cocoa Agri-business Opportunities Activity project will focus on the physical renovation of coffee farms, improving the quality of seedling production, providing farmers with tools and safety equipment, conducting training and establishing demonstration farms to improve the knowledge and skills of famers through practical short courses.

“The project is expected to create 4,680 new on-farm and seasonal jobs and double the income of 19,000 participating farmers by providing them with greater access to international markets and better prices through a farmers’ cooperative structure,” Mr McCully says.

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