Vietnam has specialty coffee, the price is twice as high as the world average.

Small-scale, spontaneous production

On the afternoon of May 17, at the workshop "Vietnamese Coffee: Increasing benefits for growers, supporting export enterprises" organized by Nguoi Lao Dong newspaper, market expert Nguyen Quang Binh said that although Vietnam is the second largest coffee exporting country in the world , it has not been able to promote deep processing to increase value. Specifically, Vietnam has about 1.6-1.8 million tons of coffee/year, but up to 90% of the output comes from small households, each garden only produces a few tons. Very few farms achieve an output of 100 tons or more. This causes many limitations in investment in processing.

Overview of the workshop.

In addition, Vietnam's domestic consumption is still quite weak. Currently, only about 5-10% of total coffee output is consumed domestically. Meanwhile, Vietnamese farmers, with an output of only 3-5 tons/household, do not have the conditions and ability to invest in deep processing or wait for high prices. They often have to stockpile their own goods, leading to many disadvantages in competition.

“If we want to create added value, we need advice from the association and local authorities to gather production hubs and build cooperatives with a minimum scale of 1,000 hectares. Only then can we think about investing in infrastructure, processing and enhancing the brand,” said Mr. Binh.

Many businesses believe that most farmers still produce on a small scale and spontaneously. With coffee prices at around VND150,000/kg of raw coffee and VND170,000/kg of finished products, if growers lack capital, do not have the skills to predict the market and control costs, it will be difficult to ensure production and business efficiency.

To ensure sustainable benefits for coffee growers, it is necessary to increase the rate of deep processing to 40-45%. In fact, there is still a lot of room for developing deep-processed coffee, specialty coffee and the domestic market. However, inherent barriers such as lack of capital, lack of support from banks and policies have not been removed.

Towards sustainable development

According to the Ministry of Agriculture and Environment , coffee exports in the first four months of this year reached 662,900 tons worth 3.78 billion USD, down 9.8% in volume but up 51.1% in value over the same period last year.

People enjoy free coffee.

Mr. Trinh Duc Minh - Chairman of Buon Ma Thuot Coffee Association - said that the coffee export target this year could exceed the 6 billion USD mark. Currently, about 10% of coffee output is processed deeply, with an average value of about 6,000 USD/ton, contributing to the increase in export turnover. Notably, Vietnam has begun to produce specialty coffee with selling prices one and a half to two times higher than the world average.

Ms. Bui Hoang Yen - in charge of the Office of the Trade Promotion Agency, Ministry of Industry and Trade in Ho Chi Minh City - said that in the context of increasingly fierce competition in the coffee export market, especially with increasingly strict requirements such as sustainability certification, no deforestation... Recently, the Ministry of Industry and Trade has coordinated with localities and industry associations to implement many practical solutions.

Dak Lak people produce coffee. Photo: VOV.

One of the highlights is the development of geographical indications to enhance the value and protect the brand of Vietnamese coffee products in the international market. At the same time, the Ministry also actively supports the promotion of coffee abroad through many trade promotion channels.

“To access high-end markets, export products must have carbon credits. Therefore, the Ministry is coordinating training programs on digital transformation, sustainable export and improving skills for businesses. Farmers are even instructed on how to livestream to sell products more effectively,” Ms. Yen shared.

According to Uyen Phuong (TPO)

Source: https://baogialai.com.vn/viet-nam-co-ca-phe-dac-san-gia-cao-gap-doi-mat-bang-the-gioi-post323580.html