ADB Expands Support for Timor-Leste’s Coffee Farmers

ADB said the investment will help smallholder farmers adopt climate-resilient coffee-based agroforestry systems while improving food security and strengthening rural incomes.

The Asian Development Bank (ADB) has approved $4.95 million in additional financing to help coffee farmers in Timor-Leste improve production, strengthen climate resilience and expand livelihood opportunities through sustainable agroforestry practices. The funding will support the Coffee and Agroforestry Livelihood Improvement Project (CALIP) and assist between 2,000 and 4,000 farming households across the municipalities of Aileu, Ainaro, Bobonaro, Ermera, Liquica and Manufahi.

The financing package includes a $4 million grant from the Asian Development Fund (ADF) and a $950,000 grant from the Green Climate Fund through the Community Resilience Partnership Program Investment Fund. ADB said the investment will help smallholder farmers adopt climate-resilient coffee-based agroforestry systems while improving food security and strengthening rural incomes.

Farmers to receive training, climate support and market opportunities

ADB Country Operations Head and Officer-in-Charge for the Timor-Leste Resident Mission, Michael Walsh, said coffee remains the backbone of rural livelihoods in the country, making continued investment in the sector essential for sustainable economic growth. He said the additional financing will enable farmers to adopt more resilient agricultural practices, improve coffee quality and increase productivity while creating new livelihood opportunities for women, men and young people.

Coffee is Timor-Leste's largest non-oil export and one of the main sources of income for rural communities. Even so, productivity remains low as farmers face increasing challenges from rising temperatures, changing rainfall patterns, pests and crop diseases that threaten both harvests and household incomes.

The expanded project will build on earlier achievements by increasing farmer training, demonstrating climate-resilient agroforestry systems and strengthening adaptation measures to reduce the impact of extreme weather events. These activities are expected to improve long-term sustainability while helping farming communities respond more effectively to climate-related risks.

Women and youth to play a larger role in coffee value chains

Beyond improving agricultural production, the financing will continue supporting efforts to enhance coffee quality, strengthen marketing systems and improve government planning and coordination across the sector.

Special attention will also be given to expanding livelihood opportunities for women and young people living in coffee-growing communities. The project aims to increase women's economic participation while creating more inclusive and sustainable coffee value chains. Implementation will continue under the leadership of the Ministry of Agriculture, Livestock, Fisheries and Forestry, working closely with the Secretary of State for Equality and the Timor Coffee Association. ADB said this partnership will strengthen collaboration across government and industry while supporting long-term rural development.

The bank reaffirmed its commitment to helping Timor-Leste build a more productive, resilient and inclusive agricultural sector capable of improving food security and supporting sustainable rural livelihoods. ADB also highlighted the broader role of the Asian Development Fund, which provides grant financing to the poorest and most vulnerable countries in Asia and the Pacific. Between 2021 and 2024, the fund helped 384,000 people move out of poverty and supported the creation of around 500,000 jobs across the region.