Creating a 'name' for Vietnamese Robusta coffee in the world market

DAK LAK Vietnam accounts for 43% of the total global Robusta coffee export volume, but the Vietnamese Robusta coffee brand is still not widely known to the world.

On November 15, in Dak Lak province, the Vietnam Coffee and Cocoa Association (VICOFA) in collaboration with the Trans-Pacific Partnership (TPP), the Global Specialty Coffee Association (SCA), and Dak Lak 2/9 Import-Export Company Limited (Simexco Daklak) organized a seminar on "Solutions to promote and develop the Vietnamese Robusta coffee brand and orientation for developing Vietnamese specialty coffee".

Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association (VICOFA) spoke at the seminar. Photo: Tran Tho.

Vietnamese Robusta coffee remains 'unknown '

Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association (VICOFA), said that the total coffee area in Vietnam is about 730,000 hectares, of which 95% is planted with Robusta coffee (mainly grown in 5 provinces of the former Central Highlands and some provinces in the Southeast). The remaining 5% is planted with Arabica coffee (catimo) grown in Lam Dong and some northern mountainous provinces (Son La, Dien Bien , Quang Tri) and some areas of jackfruit/Liberica/excelsa coffee.

Regarding exports, Mr. Nguyen Nam Hai said that 85% of Vietnam's total annual coffee output is for export with about 1.5 million tons, accounting for about 18% of the world's total coffee exports and 43% of the global Robusta coffee volume. Europe is still the largest market for Vietnamese coffee, accounting for nearly 50% of the country's total coffee exports, of which 27 EU countries account for nearly 40%, followed by Japan, the US and several other countries.

Delegates enjoy Vietnamese specialty coffee. Photo: Tran Tho.

According to Mr. Nguyen Nam Hai, of the total annual coffee export volume of Vietnam, more than 91% is green coffee beans. The remaining nearly 9% is for processing instant coffee and roasted coffee. This is the main reason why Vietnam is the second country in terms of output and quantity of exported coffee. Vietnam is the leading exporter of Robusta coffee, but consumers in the US and around the world hardly know about Vietnamese coffee. On the other hand, among the enterprises exporting instant and roasted coffee, more than 81% are FDI enterprises.

“Although there are many advantages, the added value and brand image of Vietnamese Robusta coffee are not yet commensurate with its current potential,” said Mr. Nguyen Nam Hai.

At the seminar, Mr. Nguyen Thien Van, Vice Chairman of Dak Lak Provincial People's Committee, said: Hundreds of years ago, after surveying the soil and climate, the French chose Buon Ma Thuot as the place to plant Robusta coffee, creating the foundation for the Buon Ma Thuot coffee brand, which is now a geographical indication of National Brand level.

Over the years, the Dak Lak provincial government has always been a pioneer in implementing programs to develop high-quality coffee, sustainably replant and enhance the value of the supply chain. Since 2008, the province has implemented many important projects; in particular, Dak Lak's growing areas have achieved the world's first 4C-EUDR deforestation-free product certification, and have now digitized 35% of the province's coffee area.

Developing the Vietnamese Robusta coffee brand

Mr. Thai Nhu Hiep, Vice President of the Vietnam Coffee and Cocoa Association (VICOFA), said: Vietnam is currently the world's largest producer and exporter of Robusta, with an output of more than 30 million bags, equivalent to 1.8 million tons per year. However, to date, there is still no official "national brand" for Vietnamese Robusta, no separate cupping standards, no unified promotion strategy, and no correct value positioning on the world coffee map.

Scene of the discussion. Photo: Tran Tho.

According to Mr. Thai Nhu Hiep, Vietnam has ideal natural conditions, large production scale, concentrated raw material areas and stable supply capacity. Vietnamese Robusta varieties have high productivity, good resistance to climate change, diverse flavors and potential for quality improvement. In recent years, the Fine Robusta movement according to CQI (Coffee Quality Institute) standards has begun to flourish in Vietnam. More and more Robusta coffee batches have achieved high scores, diverse flavors, and innovative processing. However, the commercial value is still low, not commensurate with the potential.

Mr. Thai Nhu Hiep proposed that the Trans-Pacific Partnership (TPP) and the Specialty Coffee Association (SCA) support Vietnam in developing cupping standards for Vietnamese commercial Robusta and granting corresponding international certification; support the development of a national promotion strategy, including product positioning, brand identity, and origin story (“Variety - Locality - Process - Flavor”); coordinate the organization of international trade promotion activities: Cupping Tour, Roadshow, and especially the “Vietnamese Robusta” booth at SCA Expo. “VICOFA and Vietnamese enterprises are committed to providing financial and resource support for these activities,” said Mr. Hiep.

Delegates attending the seminar took a souvenir photo. Photo: Tran Tho.

On the Dak Lak side, Mr. Nguyen Thien Van, Vice Chairman of the Provincial People's Committee, expressed his belief that with the global knowledge connection from SCA and the leading role of VICOFA, Vietnam will become a destination for Robusta lovers around the world, and the Buon Ma Thuot coffee brand will become a national brand for Vietnamese specialty coffee. Dak Lak province also committed to accompanying all parties in developing the specialty coffee value chain, from varieties, cultivation, processing to roasting and brewing.

Also at the seminar, representatives from the Trans-Pacific Partnership (TPP), the Specialty Coffee Association (SCA) and organizations and businesses proposed many practical solutions to build, promote and develop the Vietnamese Robusta coffee brand in the global market.

Source: https://nongnghiepmoitruong.vn/tao-danh-phan-cho-ca-phe-robusta-viet-nam-tren-thi-truong-the-gioi-d784520.html