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1st Int. Transborder Conf. of the Timor Island: Timor %u2013 Science without borderDili, 7-8 May 202581Analysis of Coffee Value Chain In Timor-LesteVicente de P. Correia*, Domingos C.C.B. Gomes, Matias Tavares and Graciano S. GomesFaculty of Agriculture %u2013 National University of Timor Lorosa%u2019e (UNTL)*Corresponding author:AbstractFor decades, coffee has been Timor-Leste%u2019s largest agricultural export and has become one of the key non-oil export commodities that contribute significantly to the country's economy. The main objective of this analysis is to examine the value chain of coffee in Timor-Leste and to identify both constraints and opportunities, particularly with regard to youth employment. Coffee production is highly vulnerable to climate change, as evidenced by the low harvest in 2023, which totaled 7,819 tons, with a very low yield of only 155 kg/ha. Of the total production, around 88% is destined for the export market. Coffee production is dominated by an estimated 44,000 smallholder households, representing approximately 25% of the total population. There is a typical flow in the coffee value chain in Timor-Leste, from production to end consumers. Coffee is cultivated by about a quarter of the population across five main production centers: Ermera, Aileu, Liquica, Ainaro, and Manufahi. The majority of coffee produced is Arabica (80%), with the remainder being Robusta. Labor is generally provided by family members, although hired labor is occasionally used, particularly during the harvest season. The coffee produced is organic. After harvesting, the coffee is distributed to agribusiness firms and cooperatives such as CCT, Timor Global, and others. These firms and cooperatives handle the processing of both wet and dry coffee. The beans then undergo grading, packing, branding, and transportation before being exported to destination countries. Most of the coffee is exported, with only a small volume sold on the domestic market. This analysis reveals several opportunities that could be pursued to maximize farmers%u2019 revenue and increase production%u2014thereby generating more employment opportunities for youth in rural areas. These opportunities include (i) intercropping coffee with other crops such as food crops, fruits, or forestry crops. Currently, only small areas of coffee plantations are intercropped with crops like vanilla, konjac, taro, and clove; (2) producing organic fertilizer from coffee husks, which are generated by smallholder coffee farmers. At present, only CCT produces coffee huskbased organic fertilizer in large quantities and sells it back to farmers. However, several challenges were cafed by the sector, including: (1) Most of the existing coffee trees are too old, resulting in low productivity., (2) there is a lack of training in value-added processing and waste utilization, (3) many young people are not motivated to engage in agriculture, including the coffee sector, (4) low production and low output prices make it difficult for farmers to manage their coffee effectively, and (5) the majority of coffee farms are owned by smallholders who lack the necessary skills and financial resources.Key Words: Value chain, export, Arabica coffee, organic, intercropping.