The Economics of Saudi Highland Coffee: Business Viability, Structural Constraints, and the Path to Sustainability
Saudi highland Arabica coffee has been cultivated for centuries on mountain terraces across Jazan, Asir, and Al-Baha. It commands premium prices (SAR 100–200 per kilogram) in one of the world’s fastest-growing coffee markets, while its UNESCO recognition as an Intangible Cultural Heritage of Humanity further strengthens its market position. Yet, despite these favourable conditions, many smallholder farmers remain unable to cover their production costs. Drawing on a stratified survey of 347 farms, a purposive cost-structure dataset of 19 farms, and qualitative field observations, this study examines the structural constraints that keep the sector in a low-viability equilibrium. The analysis shows that labour and water account for 72% of variable production costs, median yield is only 0.25 kg per productive tree compared with a biological potential of 4.0 kg, and 42% of farmers report no commercial sales, relying instead on household consumption and social gifting. Government subsidies keep about 40% of farms profitable, but the employment-based eligibility criterion excludes many younger growers needed for the sector’s long-term sustainability. The study proposes a practical reform package centred on rural infrastructure, cooperative extension and shared labour, performance-based subsidies, and contract farming to transform highland coffee into a viable specialty commodity aligned with Saudi Vision 2030.
Authors
- Khalid M. Al-Rohily
- Ahmad Sadiddin
- Bernard M. Gichimu
- Nizar Haddad
- Adel Mutlaq
- Kakoli Ghosh
- Bandar H. Alfaifi
Publication Details
- Journal
- Sustainability
- Published
- 2026-09-01
- DOI
- https://doi.org/10.3390/su18178949
- Citations
- 1
- Primary Topic
- Coffee research and impacts
- Type
- article
- Field-Weighted Citation Impact
- 5.39