The story of coffee in South Africa

Estimated reading time: 7 minutes

Coffee was introduced to South Africa in 1854 at a missionary station in KwaZulu-Natal, brought from the island of Bourbon (now Reunion). British and European settlers began cultivating coffee in Natal’s coastal region, where fertile soils, a favourable climate, and good rainfall supported various cash crops, including coffee. Production initially thrived, expanding to about 2 000 hectares by the 1870s. However, the outbreak of coffee leaf rust, along with other pests and diseases, devastated most coffee estates by the end of the century.

Coffee cultivation experienced several revivals during the 20^th century. In the 1960s, commercial production resumed in the Eastern regions (today’s Limpopo, Mpumalanga, and KwaZulu-Natal) with the introduction of Kenyan Arabica varieties. This led to a peak in the late 1980s when South Africa produced around 1 800 tonnes annually, when a few commercial coffee estates, notably in the Hazyview area and on the South Coast, put down roots.

The country was projected to produce over 6 600 tonnes by 2000. However, high labour costs, pests, diseases, and competitive global prices prevented widespread profitability, causing many estates to close over the next decade.

Today, coffee production is limited to less than 200 hectares on a handful of farms. Many, if not all these estates supplement their offerings by importing green beans, primarily from Brazil, which they roast and brand locally.

Although South Africa has the climatic potential to produce coffee in frost-free areas, challenges such as high input costs, humidity, pests, and diseases restrict expansion. Coffee requires careful attention from planting through processing, which includes various steps that require expensive equipment and involve significant investment.

Coffee consumption in SA

Yet, the economics of South African coffee production merit deeper investigation. Many South Africans from the latter half of the 20^th century will recall brands like Koffiehuis, Frisco, and Ricoffy, which were chicory-based rather than pure coffee products. A real coffee culture became popular locally, only after the coffee shop rage started in the United States (US) during the 1970s and spread globally in the following decades.

South Africa’s coffee consumption has grown steadily, driven in part by well-known brands that hold significant market share. The continued rise in coffee shops, home brewing and pod-based coffee sales reflects a substantial increase in domestic coffee consumption, though still below European levels.

According to the International Coffee Organisation, South Africa’s domestic coffee consumption has remained in the range of 640 000 to 670 000 60kg bags (± 40 000 tonnes) annually since 2017. South Africa imported an estimated 25 million kilograms in 2024, mostly from Brazil, valued at roughly R2,24 billion. Local demand clearly far exceeds domestic production, positioning South Africa as a major importer of green coffee on the continent. Over the past decade, the number of roasteries in South Africa has surged, often driven by small, independent businesses, reflecting a growing local coffee culture and demand.

Global coffee demand

Globally, coffee demand has also grown steadily, reaching around 10 million tonnes per year since 2020, fuelled by increasing consumption in emerging markets like China. South America, particularly Brazil and Colombia, dominates production. Brazil alone accounts for about 76% of South America’s coffee output and saw a 2,7% production increase in 2025, producing approximately 55,7 million bags. This expanding supply keeps international prices competitive, presenting tough competition for South African producers.

Proponents of increased local production are using growing global demand and the obvious rise in local coffee consumption to argue for investment in the sector. However, the fact is that supply, especially from South America, has been rising in tandem with rising demand, and coffee prices, although showing a positive trend, have yet to rise substantially, as Figure 1 below clearly indicates.

Figure 1

Given the substantial increase in demand, one would expect higher coffee prices and, therefore, more viable local coffee production. However, local coffee struggles to compete with imported coffee prices. Yet, the argument is made that South African Arabica, especially if grown organically, can potentially enter premium markets.

One hectare of mature Arabica can yield between 1 and 2 tonnes of green coffee. With intercropping (with, for instance, fruit trees or vegetables), coffee integrates well into agroforestry systems and in terms of job creation, could require three to five full-time jobs (planting, maintenance, harvesting, and processing). Coffee production can be compatible with regenerative agriculture goals and climate-smart farming.

Table 1: Commodity standards for South African-produced coffee.

Recent initiatives show promise for niche growth. The KwaZulu-Natal South Coast, driven by projects like the RedBerry Coffee Collective, is emerging as a potential coffee-growing region. Pilot programmes and feasibility studies in areas such as the Eastern Cape and Limpopo, supported by government and private partners, focus on smallholder farming under schemes like “One Household, One Hectare”.

These efforts emphasise sustainability, vertical integration, and local market access, aiming to improve profitability for small producers. However, economic realities remain challenging for scaling production.

The high price of processing locally

Local commercial producers who have ventured into coffee production question the viability of local coffee production. Apart from obvious factors such as input costs and disease management, the cost of labour and machinery involved in processing the coffee berries is extensive. Processing includes washing the berries after harvesting, pulping, and fermenting them before washing again, then removing the pulp and associated gel, drying beans to a moisture content of roughly 10%, followed by bean de-husking, sizing, destoning, roasting, and packing. This process, as well as required branding and marketing, entails a significant investment.

The main limiting factor, however, is that global coffee production, particularly Brazil’s, has increased substantially over the last two decades. Brazil is the world’s leading producer, increasing by about 2,7% in 2025 compared to the previous year, reaching around 55,7 million bags. It appears well-positioned for continued growth, with increasing planted areas, improvements in farming practices, and strong international demand expected to support a positive trend over the next decade. Colombia, another South American producer, is also expected to increase production, contributing to the overall regional output. Exports from South America, at highly competitive prices if not quality, make it difficult locally to compete.

Investing in local research

An alternative to accepting the difficulties of competing globally would be investing in local research. South Africa’s natural resource base in frost-free zones offers potential, but optimal exploitation requires detailed investigation. Research should focus on optimal cultivation practices tailored to local agro-ecological conditions. This could improve crop management techniques, enhance yields, and reduce costs by adapting practices like irrigation, shading, intercropping and soil fertility management.

Another key research focus area should be the development of pest and disease-resistant cultivars. Coffee leaf rust and other diseases have historically devastated South African coffee production. Current varieties and pest control measures could be improved. Breeding coffee cultivars that resist local pests and diseases can reduce reliance on costly chemical controls and labour-intensive interventions, improving economic viability. Local coffee research can support the growth of niche markets such as organically grown, intercropped, high-quality coffee. Such markets potentially offer higher prices.

Research that aligns with regenerative agriculture can also attract sustainability-minded consumers and funding. Investing in local coffee research could build a foundation for innovation and empower significant numbers of large and small coffee farmers.

In conclusion, South Africa has a small but growing coffee culture, and domestic consumption is rising, but production faces economic barriers. Low import prices, high production costs, and climatic challenges limit the industry’s growth potential. Local coffee may find niche markets, especially in organic and intercropped premium products, but its ability to compete remains constrained.

Supporting smallholder and speciality coffee enterprises is valuable, acknowledging that economic scalability remains the primary hurdle for the foreseeable future. Yet, local research focussing on optimal cultivation practices and cultivar development could unlock coffee production’s potential. It could address challenges, tap into premium markets, advance sustainability goals, and ultimately improve local coffee’s economic prospects, beyond the limitations of global commodity coffee price competition. – Aart-Jan Verschoor, Agricultural Research Council