Vietnamese coffee industry targets export value of US $ 6 billion in 2030

HANOI (Vietnam News / Asia News Network): The Vietnamese Coffee and Cocoa Association has targeted a coffee export turnover of $ 5-6 billion in 2030, doubling the value of exports to the actual hour.

To reach this figure, experts estimate that the domestic coffee industry needs to increase the proportion of processed coffee products from less than 10 percent currently to around 25 percent or even more.

However, increasing the proportion of processed coffee products is a big challenge for the industry due to the level of technology, the complex operation of the plant and the awareness of the farmers.

At present, Vietnam has 160 coffee roasting facilities, 11 coffee blending facilities, and eight instant coffee processing facilities. The number of instant coffee processing plants is low and most of them are operating below their intended capacity.

On the other hand, Vietnamese processed coffee brands still have no place in the global market, and branding takes a lot of money and effort.

Deputy Minister of Industry and Trade Thắng Hải said that in order to reach the $ 6 billion target, the Vietnamese coffee industry needs to strengthen the links between production and trade, expand markets for ‘export and develop products associated with brand building, towards building a sustainable coffee value chain.

According to the Minister of Agriculture and Rural Development Lê Minh Hoan, if the coffee industry is to have sustainable development, there must be links between provinces or economic regions to form a larger-scale production area. and build a brand for Tây Nguyên coffee.

The Ministry of Agriculture and Rural Development (MARD) will continue to implement sustainable development projects for the national coffee industry.

For the central highland provinces, the ministry will put in place a logistics infrastructure for the coffee industry to create higher value coffee and more processed products. This will form a coffee production chain to increase the value of coffee beans and the income of coffee producers.

“The Europe-Vietnam Free Trade Agreement (EVFTA) has opened up great opportunities for the domestic coffee industry. In the future, the ministry will expand its plans to export agricultural products to the EU, including coffee. also have a strategy for Vietnamese agricultural products to enter major distribution systems in Europe, ”Hoan said.

“If coffee from the central highlands is to reach the global market, it must change production, harvesting and processing in response to climate change and green consumption in the global market. “

The coffee industry must restructure itself effectively, in particular by building a specialized cultivation zone associated with the development of coffee processing; and the application of advanced technologies.

It should promote the link between the areas of raw materials and processing facilities in order to create a stable supply of quality products, meeting market requirements.

The industry must have solutions to overcome the difficulties and support farmers and businesses to attract investment; apply science and technology to production; and improve the quality of human resources.

In addition, the brand image needs to be given more attention. Today, the construction and development of brands has not been carried out and effectively implemented by companies. This is one of the reasons why Vietnamese agricultural products, including coffee, are unknown in the world market.

Local businesses need to study the terms of market share, taste, quality and price. They must determine the proportion of processed products to build a clear direction of development, advertising, marketing and brand positioning strategies.

The state will support companies in building and developing their brands through communication and image promotion campaigns and training programs on improving design capabilities.

The world price of coffee in 2022 is expected to remain high. The Covid-19 pandemic has limited the supply of major coffee-producing countries such as Colombia and some other South American countries, according to the association. Congestion at international ports is also expected to continue.

Currently, some roasters are planning to blend Arabica and Robusta coffees to lower the selling price due to the lack of Arabica coffee supply.

In the long run, this may change the tastes of consumers and make them more accustomed to drinking Robusta coffee, and help Vietnam to increase its exports of Robusta coffee.

Meanwhile, European, American and Asian consumers will also gradually know and love Vietnamese coffee beans.

Experts said that if local businesses have strategies to enter strict export markets such as the EU, US and Japan, they will be promising markets for Vietnamese coffee exports.

The future strategy of the coffee industry is to develop processed coffee products, such as roast coffee and instant coffee, rather than focusing on the export amount of green coffee as is currently the case.

According to experts, despite many challenges, the development of the coffee processing industry will be a key solution not only to increase the value of exports, but also to help the coffee industry to develop sustainably.

Deputy Minister of Industry and Trade Hải said that in recent years, trade promotion activities have been strengthened to develop the export market for coffee products.

As part of the National Trade Promotion Program, the Ministry of Industry and Trade (MoIT) coordinated with coffee producing localities, organizations and businesses to implement trade promotion activities, such as participation in specialized exhibitions of agricultural and food products in the country and abroad.

In 2021, Vietnam’s coffee exports reached 1.52 million tonnes, worth around $ 3 billion, down 2.7% in volume, but up 9.4% in value on a year. Vietnam mainly exported Robusta coffee last year.

According to the Import and Export department of the Ministry of Information, the relaxation of social distancing measures due to Covid-19 has created more favorable conditions for customs clearance and a higher demand for coffee in the market world, which were the factors in the recovery of coffee exports from Việt Nam at the end. from 2021.

Coffee exports in December 2021 reached 130,000 tonnes, bringing in $ 305 million, up 21% in volume and 26.2% in value compared to November 2021.

The average export price of Vietnamese coffee in December 2021 reached $ 2,344 per tonne, the highest level since June 2017. The price increased 4.3% month-on-month and 28.7% year-on-year .

The average export price for all of 2021 was estimated at $ 1,969 per tonne, up 12.4% from 2020.

However, to increase export turnover, the key factor remains the development of processed coffee products. In 2021, Vietnam’s deep-processed coffee exports were only 121,000 tonnes, grossing $ 433 million. Thus, the volume was only 8 percent, while the export turnover of processed coffee products represented 15 percent of the total turnover.

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