Enhancing the value of coffee beans

Organic production to reach demanding markets

USDA (United States Department of Agriculture) is an organic certification issued by the United States Department of Agriculture for agricultural products. Compared to many other types of organic certification, USDA is highly reliable because of its strict evaluation process. Only products with more than 95% organic ingredients are granted USDA certification and can use the logo for this certified product.

Gia Lai currently has only a few units that have achieved USDA certification for the coffee industry. However, organic agricultural production to achieve USDA certification is an inevitable trend in the future. The superiority of organic agriculture compared to traditional agriculture is sustainability, environmental protection and biodiversity. Organic agricultural products also have a higher selling price than conventional products. In particular, organic agricultural products have many advantages in penetrating demanding markets such as: EU, USA, Japan...

Creating organic production areas is a testament to the sustainable approach to penetrate demanding markets. Photo: VT

In March 2024, Vinh Hiep Company Limited (Pleiku City) held a ceremony to export the first batch of Vietnamese organic coffee to Japan. This coffee product is grown at Vinh Hiep farm (Ia Tiem commune, Chu Se district) on an area of ​​42 hectares. In 2018, the farm achieved the first organic coffee certification in Vietnam with an annual output of about 60 tons of beans. Currently, the farm has achieved 4 organic certifications from the United States, EU, Japan, and Korea.

To achieve these certifications, coffee at the farm must apply extremely strict planting and care processes, from the seed stage to nutrition management to ensure productivity, quality and sustainable development of the underground ecosystem. The harvested product must have a ripe fruit ratio of 95% or more and an impurity ratio of no more than 0.5%; the final harvest product must have a ripe fruit ratio of over 80%. After harvesting, the coffee is put into the washing system. Next, depending on the processing requirements, the nature of the coffee fruit, and the weather conditions, there will be appropriate processing methods.

Mr. Thai Nhu Hiep - Chairman of the Board of Members and Director of Vinh Hiep Company Limited - shared: "Vinh Hiep sets its mission as a pioneer in organic agriculture, bringing Vietnamese agricultural products to a new level by meeting the strict standards of the most demanding markets in the world .

The farm is a pilot model, creating a platform to share and guide people on how to approach the organic production process appropriately. And to create livelihoods for farmers, Vinh Hiep will support the purchase of output at a good price, commensurate with the quality of coffee beans, helping them understand the value and connect long-term, together for sustainable development."

Similarly, Ms. Nguyen Thi Nga - Deputy Director of Nam Yang Agricultural and Service Cooperative (Dak Doa district) said: "Cooperative members had a part of their garden area certified by USDA and EU 4 years ago. Last year, this area was increased to 30 hectares (including coffee) certified by USDA and EU. These standards open up opportunities for the Cooperative's organic products to penetrate many demanding markets."

One of the high-quality coffee processing processes at Tam Ba Production and Service Company Limited. Photo: DVCC

Up to now, Tam Ba Production and Service Company Limited has 200 hectares applying organic production processes, planning to register for USDA certification procedures in the next crop year. Producing according to organic processes to achieve international certifications will be an opportunity for Gia Lai coffee to reach the most demanding markets in the world.

Enhancing the value of coffee beans

Of the province's total of more than 100,000 hectares of coffee (about 88,000 hectares for business), there are currently about 46,000 hectares of production according to the standards: VietGAP, 4C, Organic, UTZ, Rainforest Alliance... The whole province has about 90 factories and coffee processing facilities with many famous brands such as: L'amant, Thu Ha, Thanh Thuy; there are 31 coffee products with OCOP certification.

According to Mr. Luu Vinh Quang - Deputy Director of Tam Ba Production and Service Company Limited: Currently, the Company's green coffee bean export market has expanded to countries such as Japan, Germany, Poland, Singapore; and roasted and ground finished products are exported to the United States. In the past 3 years, from raw materials produced according to organic processes, the Company has focused on processing high-quality coffee to increase product value and serve the export market.

Recently, the first batch of 38 tons exported to Japan marked a step forward in the Company's product quality. To ensure that this batch met the requirements, the partner sent people to strictly inspect the care process. At the time of harvesting, processing and packaging, they also closely monitored.

Nowadays, many businesses have invested in modern machinery to process coffee. Photo: VT

Coffee is currently the main export product, accounting for more than 70% of the province's total export turnover. In 2023, coffee export turnover will reach 490 million USD. However, the main export output is still green beans, the proportion of processed coffee only accounts for about 16%.

Mr. Doan Ngoc Co - Deputy Director of the Department of Agriculture and Rural Development - informed: Currently, many enterprises in the province have focused on investing in building a sustainable coffee production and processing network and a part of high-quality coffee products, specialty coffee to export to major markets such as: the United States, EU, Japan...

In addition to creating quality raw materials, processing high-quality coffee lines with honey, natural, Fine robusta processing methods will increase the value of the product 1.5-2 times compared to conventional processing methods. However, this requires producers to pay attention to the care stage, control pesticide residues, harvest 80-95% ripe coffee, to the technology of processing, preserving and processing the finished product.

Producing high-quality coffee will increase the value of the product 1.5-2 times compared to conventional processing methods. Photo: VT

According to Decision No. 383/QD-UBND of the Provincial People's Committee on the agricultural restructuring plan for the 2021-2025 period, by 2025, about 100-105 thousand hectares of coffee will be maintained stably, with an output of 304 thousand tons.

In the period of 2021-2025, the province will promote the replanting of old coffee gardens with an area of ​​over 8,500 hectares, concentrated in the districts of Chu Pah, Ia Grai, Dak Doa, Mang Yang, Chu Prong, Duc Co, Chu Se, Chu Puh, Kbang and Pleiku City; use 100% of high-yield, high-quality coffee varieties; intercrop fruit trees, medicinal plants, and short-term agricultural crops in replanted coffee gardens to increase income; synchronously apply scientific and technical advances in production, especially advanced irrigation methods, save water, gradually apply mechanization of harvesting; increase investment in deep processing to improve the quality and added value of Gia Lai coffee.

At the same time, effectively implement the plan to develop Vietnamese specialty coffee in the area associated with building geographical indications for Gia Lai coffee, growing area codes and product traceability, building and developing the Gia Lai coffee brand; strive to develop a specialty coffee area of ​​about 1,170 hectares by 2025, with a specialty coffee output of about 4,680 tons.

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Source: https://baogialai.com.vn/nang-tam-gia-tri-hat-ca-phe-post292344.html