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Vietnam seeks to raise the value of coffee

05/07/2019 684 Views

Vietnam produces more than 1.5 million tons of coffee each year, of which about 90% is exported in raw form. This is why the turnover does not match the quantity of coffee exported.

Currently, Vietnamese coffee is exported to more than 80 countries and territories for a total annual value of $ 3 billion, representing 14% of the global market share. Vietnam is also the world's second largest exporter of raw coffee, behind Brazil, and accounts for 10.4% of the world export value. The top ten markets for Vietnamese coffee are Germany, the United States, Italy, Spain, Japan, Belgium, Russia, Algeria, the Philippines and China, accounting for 80% of national exports . Although coffee is one of Vietnam's five major export products, its export sales grew only 6.57% annually between 2013 and 2017, mainly due to fluctuations in world market and the unbalanced structure of national exports.

Nguyen Quoc Toan, Acting President of the Agricultural Products Processing and Market Development Department of the Ministry of Agriculture and Rural Development, said that most Vietnamese exporters have not yet established direct relations with the Ministry of Agriculture and Rural Development. professional roasters. He also pointed out the weak administrative capacity of processing companies and local exporters, as well as weak foreign language skills and insufficient knowledge of the international trade of Vietnamese coffee sales staff. In addition, poor commercial infrastructure, a lack of trading and auction floors, an unprofessional information and market research system, and other factors also hampered growth in the sector, did he declare. Vietnam has 150 coffee exporting companies, including 13 foreign direct investment (FDI) firms and more than 3,000 coffee purchasing agents. However, only a third of them have raw processing plants for export; and 90% of domestic firms and all FDI firms buy raw coffee through traders or purchasing agents.
 
To improve the value added of Vietnamese coffee, the Ministry of Agriculture and Rural Development is implementing a high-quality brand development project for the period 2018-2023 and 2030 vision. The project will support at least ten companies in the region. refinement of their transformation technologies, and another five to ten in the development of production models. It also aims to help at least ten companies invest in the production and processing of high-quality coffee products, thus ensuring better value-added for the sector for the 2020-2030 period. Nguyen Quoc Toan stressed the need for the coffee sector to restructure, improve the value of the production chain and maintain the area of ​​coffee growing at about 600,000 ha and an annual export volume of 1, 5 to 1.8 million tonnes.

The sector will intensify its investments in production infrastructure, particularly in the harvest, transport, drying and storage stages to reduce post-harvest losses. It will also give priority to the construction of processing plants, with an annual unit capacity of at least 5,000 tonnes, and instant coffee plants with an average unit capacity of at least 500 tonnes per year. Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said the coffee sector should select major groups and companies with sufficient capital, technology and market opportunities. He also suggested maintaining traditional export markets while gaining access to others deemed promising, with particular attention to China, the European Union and the countries participating in the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP). ) and the ASEAN Economic Community. The coffee industry has set the target by 2030 of treating over 80% of raw coffee, producing 150,000 tonnes of instant coffee each year and increasing the rate of labeled and processed coffee by 30 to 40%.

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