From the growing region to the coffee distribution center.

(GLO) - The increasing involvement of large enterprises is creating a remarkable turning point for Gia Lai's coffee industry. From primarily exporting raw coffee, high-value product lines such as roasted and ground coffee, instant coffee, and specialty coffee are gradually emerging.

Along with that comes a shift in mindset, not just towards selling coffee, but towards selling standards, brands, and pricing power within the global value chain.

Restructuring the value chain and breaking free from the "raw export" model.

With nearly 109,000 hectares and a production of over 360,000 tons, Gia Lai is among the leading localities in the country in terms of coffee production scale. However, for many years, the majority of production has remained in the form of raw exports.

Coffee growers primarily sell semi-processed products, relying on traders and fluctuations in international exchanges. As a result, value added is low, the value chain is fragmented, and benefits are not distributed proportionally to production effort. This has been the biggest bottleneck for Gia Lai's coffee industry for a long time.

The emergence and expansion of large enterprises are gradually changing this landscape. Beyond simply purchasing, these enterprises are beginning to deeply participate in reorganizing production, investing in processing, and connecting to markets.

Many cooperatives in Gia Lai have linked coffee production with export businesses. Photo: VT

In the context of an increasingly stringent global market regarding quality, traceability, and sustainable development, establishing raw material areas that meet international standards is no longer an option, but a necessity. This necessitates comprehensive investment across all aspects, from seeds and cultivation techniques to processing and branding.

Mr. Thai Nhu Hiep - Chairman of the Board of Members and General Director of Vinh Hiep Co., Ltd. (An Phu ward) said: The company not only purchases but also directly reorganizes the raw material area, links with farmers and participates deeply in the global distribution chain.

Currently, Vinh Hiep is linked with approximately 20,000 farming households, exporting coffee to more than 60 countries, accounting for over 12% of Vietnam's Robusta coffee exports.

Not only Vinh Hiep, but many businesses in Gia Lai have proactively and pioneered the direction of linking raw material areas and deep processing, such as: Tam Ba Production and Service Co., Ltd. (Dien Hong ward), VCU Joint Stock Company (Chu Prong commune), Tropico Tay Nguyen Co., Ltd. (Dien Hong ward), Thuy Dung One-Member Limited Company (Hoi Phu ward), Vinh Binh Tay Nguyen Production, Trade and Service One-Member Limited Company (An Phu ward), BaKa Co., Ltd. (Ia Hrung commune)... These are important key players in the restructuring process of the industry.

According to Mr. Phan Ba ​​Kien, Director of BaKa Co., Ltd., in 2025, BaKa focused on developing traditional product lines such as roasted and ground coffee, instant coffee, and other processed products, emphasizing quality improvement according to international standards.

Thanks to this, the company's products have gradually conquered the shelves of demanding markets such as the US and Japan. Not stopping there, the company is repositioning its development strategy towards increasing added value, using quality and the story of origin as the foundation for competitiveness.

"BaKa clearly understands that, in the context of an increasingly demanding global market, a product alone is not enough; it must be a product with identity and transparency from the raw material source to the processing process," Mr. Kien shared.

In reality, Gia Lai coffee is gradually moving beyond its role as a "raw material source" and closer to the global value chain – where businesses not only sell products but also control quality and build brands.

Shift from production to coordination to enhance position

A notable aspect of this shift is the choice of market segment. While approximately 95% of Vietnam's coffee growing area is Robusta, the investment in Arabica – a premium segment requiring stringent cultivation conditions – demonstrates a trend of "niche expansion to achieve greater success."

Hoang Anh Gia Lai Group is pursuing this strategy with the goal of expanding its coffee growing area from the current 3,000 hectares to 20,000 hectares within 3 years, with an expected 7,000 hectares to be newly planted in 2026 alone. Along with this, they plan to invest in 4 wet processing plants and a modern coffee extract plant.

The noteworthy aspect lies not only in the scale, but also in the approach to building a closed-loop value chain from cultivation to processing to the final product. This is a step towards moving away from a fragmented production model and towards controlling the entire value chain.

The involvement of large enterprises not only brings capital but also introduces modern management thinking. Farmers no longer produce in isolation but become a link in the supply chain. This helps reduce risks, stabilize output, and improve product quality.

More importantly, the focus of development is shifting from output to pricing power; from exports to deeper participation in global supply chains.

By 2026, businesses aim for coffee export revenue of approximately $1.5 billion. Photo: VT

The concept of a "coffee distribution center" therefore has a broader meaning than simply concentrating raw materials. It encompasses the ability to control the flow of the product from the growing region, processing, logistics, to distribution. By mastering these stages, Gia Lai not only participates in the market but can also influence the product's value.

In the context of consumers' increasing concern for origin, sustainability, and social responsibility, this is also an opportunity for Gia Lai to build its "Robusta identity" - a value that has not been fully exploited before.

In his capacity as Vice President of the Vietnam Coffee and Cocoa Association, Mr. Thai Nhu Hiep believes that Gia Lai has the potential to become the capital of high-quality, green, and responsible Robusta coffee; and is fully qualified to become a "coffee coordination, processing, and trading center" for the region and the world .

The core issue today is that Gia Lai's coffee still has low added value, relies heavily on raw exports, and faces increasing pressure regarding green standards and traceability, requiring a fundamental and comprehensive transformation of the development model.

Coffee export warehouse at Vinh Hiep Co., Ltd. (An Phu ward). Photo: VT

To achieve a breakthrough, Vinh Hiep has developed a five-year plan, to be implemented from now until 2030, aiming to transform Gia Lai's coffee industry to reach international standards, with a total investment of over 18,000 billion VND.

Notably, the approach is not based on single projects, but on an ecosystem model that brings together raw material sources from five Central Highlands provinces in Gia Lai, forming a "Central Highlands Hub"; developing deep processing to increase value and reduce dependence on raw material exports.

Simultaneously, the plan includes building a central warehouse complex and a coffee exchange based on London standards to proactively control prices; establishing a coffee research institute linked to digital transformation; and developing a circular economy chain from coffee - organic fertilizers - green energy - experiential tourism.

Notably, the planned connection between the western part of the province and Phu My - Quy Nhon Port is considered a "value corridor," serving not only coffee exports but also expanding to include all agricultural products in the region, including those from neighboring provinces and Laos.

According to Mr. Thai Nhu Hiep, if implemented comprehensively, by 2030, when mentioning high-quality Robusta coffee, the world will think of Gia Lai - Vietnam.

Source: https://baogialai.com.vn/tu-vung-nguyen-lieu-den-trung-tam-dieu-phoi-ca-phe-post586016.html