Vietnam Coffee has high competitive ability

According to statistics from the Ministry of Agriculture and Rural Development, the export of coffee on the first 7 months this year is estimated at 1.12 million tons and the value is about 2.31 ​​billion, up 26.9% in volume and 21, 9% in value compared with the same period in 2013.

Vietnam coffee output ranks on the top coffer countries of the world. (Photo illustration: KT)

The average of export coffee prices on the first 6 months of the year reach $ 2,043 / ton, down 4.84% compared to 2013. Germany and the United States continued to be the largest consumer market of Vietnam coffee in the first 6 months 2014, Belgian market has the strongest growth rate, 2.5 times in volume and 2,35 times in value compared with the first 6 months of 2013.

Before, in recent years, Vietnam‘s coffee exports are always in high position, is considered one of the most important agricultural products of Vietnam‘s exports. Vietnam‘s coffee industry is mainly export-oriented, with exports accounting for 95% of production. Vietnam is currently the biggest exporting Robusta coffee of the world, and the whole coffee industry ranks the second posittion of the world in export volume and the 3rd in value.

According to experts, in the coming years, Vietnam may become the highest coffee exporter in the world.

 The Ministry of Industry and Trade has announced the assessing report on potential export on the last of July, 2014: Vietnam Coffee has higher competitive ability due to environmental conditions and climate preferences, production cost is low, the output rank on the top countries of the world. However, the quality of the coffee is still low due to poor processing equipment, poor drying, out dated post-harvest technology. Besides, Vietnam has not had brand and Vietnamese exporters are limited marketing skills. According to MARD, 90% of the coffee is still raw products, with low added value.

With the above weaknesses, Vietnam coffee is only offered at a lower price than the average price of the world. However, with stable positions on the world coffee market and the opportunities to upgrade the processing quality and post-harvest handling, Vietnam’s export coffee potential has been assessed highly.

The need to push up the technological improvements to increase the quality of coffee

However, to develop the export potential, there must be changes from production, processing, and marketing to further enhance the added value of Vietnam‘s coffee brand.

According to Mrs. Nguyen Thi Thu Hang, Head of the Evaluation Advisory export potential (under the program "Improving competitiveness of small and medium sized enterprises in Vietnam through supporting local businesses system"), along with the above limitations, the current aging ​​coffee is increasing in big area, irrigation technology is also outdated.

Therefore, in order to promote potential, turn potential into reality effects, Ms. Hang said that the coffee industry needs to upgrade the quality of green coffee beans by investing in research, post-harvest technology, storage and processing. We need to apply the sustainable standards into coffee’s production. The other options are producing coffee to serve niche markets such as organic coffee, even in a small demand. We need to have recultivation strategies and apply modern irrigation technologies.

Along with these solutions, many experts recommend, the coffee industry need to control growing area to avoid the risk of oversupply. Coffee farmers themselves also participate in the creation producing standard in accordance with industry branches requirements.

If we want to develop this industry sustanability, increase the higher revenues, the experts need to focus firmly on the solution of the Ministry of Agriculture and Rural Development, propagate the producting, processing and trading businesses directly take part in "sustainable coffee program" aimed at improving coffee quality under international standards such as 4C, Rainforest Alliance, Utz Certified, Fair Trade.

Source: VOV