Since the beginning of the year, Vietnam’s coffee exports have been showing a positive signal, as world coffee prices have risen again and the demand for coffee consumption has increased.
Vietnam ranks second in the world in terms of coffee exports, only after Brazil. However, this year, this country’s coffee supply decreased due to weather factors.
Since the beginning of the year, Vietnam’s coffee exports have been showing a positive signal when the world coffee prices are rising again and the demand for coffee has also increased thanks to the recovery of major economies after the pandemic.
The coffee market has expanded with a variety of commodities. This is the prospect of increasing the exports of Vietnam’s coffee industry.
Vietnam’s coffee exports rank second in the world, only after Brazil. (Photo: VNA).
According to statistics from the General Department of Customs, from the beginning of the year, Vietnam’s coffee exports reached approximately 1.5 million tonnes with an export turnover of about 3.2 billion USD and an average export price of nearly 2,283 USD/tonne, up more than 21% compared to the same period in 2021.
In the last months of the year, the world market continues to increase coffee purchases due to scarce supply and low inventories as well as weather concerns affecting the coming crop. Europe is currently Vietnam’s largest coffee-importing market.
It is known that one of the reasons for the positive growth of coffee exports is that this sector has focused on increasing the proportion of processed coffee exports, rather than raw exports as before.
INCREASE DEEP PROCESSING TO IMPROVE THE COFFEE VALUE
At this time, the Central Highlands are entering the coffee harvest season. In the last months of the year, coffee prices are forecast to continue to rise. The increase in exports of deep-processed coffee products is believed to be the main motivation that helps Vietnam’s export turnover to improve and be able to achieve the target this year.
Coffee from the time it is harvested until entering the factory must pass a lot of strict quality tests. Every detail while roasting, even the smallest, must be carefully recorded; especially despite modern machinery, highly trained technicians must constantly smell and taste coffee to ensure that deep processed coffee products meet export standards,
“Machine can’t evaluate the quality of coffee. Not all batches of coffee are the same, there are different types of coffee so it requires human feeling, “said Mr. Le Duc Manh, coffee roasting technician, 2/9 Export-Import Co., Ltd., Dak Lak.
When going into deep processing, in addition to strengthening the connection with farmers, Vietnamese coffee producers have made efforts to achieve certifications such as rainforest, 4C, coffee landscape, specialty coffee, organic coffee, etc.
“For the difficult market, we will focus on ensuring stable quality, secondly, constantly improving the added value of coffee, so that when the coffee reaches the consumer, it will bring the brand of Vietnam”, said Mr. Pham Van Chung, 2/9 Import and Export Company Limited, Dak Lak.
However, Vietnamese enterprises export deeply processed coffee mainly to markets such as China, Russia, and the Middle East. Meanwhile, coffee exports to large and potential markets such as Europe are still challenging.
“Enterprises must find a way to connect with customers and distribution systems in the European market. This depends entirely on the capacity of the business, ” said Mr. Pham Van Chung, 2/9 Import and Export Company Limited, Dak Lak.
The price of one kg of ground roasted coffee can be two or three times higher than one kg of green coffee, the profit can increase from 20 – 30%.
IMPROVE THE QUALITY OF THE COFFEE RAW MATERIAL AREA
Instead of exporting raw coffee as before, enterprises have switched production to refined products with higher commercial value. This is an opportunity to conquer difficult markets and promote Vietnamese coffee brands in the international market.
While many consumers in Vietnam prefer Robusta coffee, the tastes of the world mostly prefer Arabica coffee.
Currently, in many areas, farmers have changed the cultivation method of these two types of coffee towards green, clean, and associated with environmental protection to create a high-quality raw material area for exports.
Mr. Huynh Quoc Viet’s Robusta coffee garden is over two hectares. Applying organic care, his coffee plants are always green with fewer pests and stable yield with more than 6 tonnes of kernel coffee per year.
“I cut down by over 50% of chemicals and invested in organic fertilizers. Secondly, I used grass as a foundation for microorganisms to stick to the soil for development, ” said Mr.Huynh Quoc Viet, Quang Phu town, Cu M’Gar district, Dak Lak.
“The chemicals, fertilizers, and pesticides are strictly controlled, so the coffee grows naturally and stably. Coffee meets the standards of specialty coffee, ” said Dr. Pham Cong Tri, former staff of the Institute of Agricultural, Forestry Sciences, and Engineering of the Central Highlands.
Farmers are harvesting coffee in Dak Lak. (Photo: VNA)
Many projects on sustainable agricultural practices related to coffee such as land improvement in coffee farms, coffee landscaping, etc are carried out in Dak Lak, Dak Nong, Gia Lai, etc.
In Huong Hoa district, Quang Tri province, one of the key areas of Arabica coffee cultivation in the country, coffee growers are guided to cultivate under VietGAP and GlobalGAP standards, so productivity and quality increase compared to previous years.
“When picking, I choose ripe coffee, so the quality is high. Compared to the past few years, the coffee price this year is higher, ” Ms. Ho Thi Dong, Tram village, Huong Tan commune, Huong Hoa district, Quang Tri, shared.
Each year, this specialized coffee area recultivates and develops about 120 – 150 hectares of Arabica coffee trees.
“Coffee has been supported by Quang Tri province in seeds, forest improvement, coffee re-cultivation, and the formation of new forest gardens,” said Mr. Ha Sy Dong, Vice Chairman of Quang Tri Provincial People’s Committee.
“The standard procedure must be applied once the coffee is re-cultivated. Currently, the Ministry has issued a series of technical procedures on sustainable coffee care, requiring farmers to continue to apply”, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh emphasized.
From now to 2025, the whole country is expected to replant 75,000 ha and renovate 32,000 ha of coffee, of which Arabica coffee accounts for about 20% of the total area. In addition, most of the recultivated coffee area is grown with new varieties, for high yields and superior quality.
If the export price of coffee continues to be as high as it is today, then in the whole of 2022, the Vietnamese coffee industry can still set a record turnover of four billion USD and the growth can last until 2023./.