Friday, June 22, 2018 12:20:37 PM - Markets open
VN-INDEX 976.15 +6.75/+0.70%
HNX-INDEX 110.06 -0.11/-0.10%
UPCOM-INDEX 51.81 +0.02/+0.04%
Đắk Lắk to shift coffee strategy
Source: VNS - 2/10/2017 10:00:00 AM
 (0 ratings. You must sign in to rate.)
The Central Highlands province of Đắk Lắk plans to increase the proportion of  processed coffee such as instant coffee and powdered coffee from less than 10 per cent to 15 per cent in total coffee output by 2020 and up to 30 per cent by 2030.

Phạm Ngọc Nghị, chairman of the province’s People’s Committee, said the province’s policies were being adjusted to attract more domestic and foreign enterprises to invest in coffee processing.

He said that most locally based processing companies were private firms whose market access and product advertising capacity were modest.

Đắk Lắk, which has the largest coffee area and output in Việt Nam, has more than 200,000ha and an annual coffee bean output of 450,000 tonnes.

However, the province only has 145 coffee processing facilities with a total capacity of 32,100 tonnes, accounting for 5.55 per cent of the province’s total coffee bean output.

To achieve the targets, the province has created a more favourable investment environment for both domestic and foreign enterprises, particularly those specialising in roasting and grinding.

The province has also helped coffee enterprises improve their corporate governance, promoted the use of advanced post-harvest and processing techniques and expanded market access for local companies.

Coffee farmers, producers and businesses are being encouraged to produce beans that can be certified by the coffee global certification programme (UTZ), the fair-trade labelling organisation (FLO), Rainforest Alliance (RFA) and 4C (Common Code for the Coffee Community).

The province, which has helped organisations, enterprises and co-operatives build brands, has offered assistance to companies to acquire rights to the geographical indication for processed coffee products.

Last year, Đắk Lắk produced 28,000 tonnes of processed coffee, including 23,000 tonnes of powdered coffee and 5,000 tonnes of instant coffee.

It exported 4,520 tonnes of instant coffee worth nearly US$27 million, accounting for 7.5 per cent of the province’s coffee export revenue.

In the 2016-17 coffee season, Đắk Lắk estimates it will export 230,000 tonnes of coffee to 75 countries and territories.

Export potential

Việt Nam’s processed coffee exports are predicted to increase in the coming years due to more investment from domestic and foreign enterprises, according to experts.

Many coffee companies, including Trung Nguyên, Mê Trang and Vinacafe, for instance, are expanding the scale of their production.

In addition, Việt Nam’s free trade agreements with the EU, Europe-Asian Economic Union and Korea will create opportunities to boost Việt Nam’s processed coffee exports.

Under free trade agreements, exports of Việt Nam’s processed coffee are taxed at only 0-5 per cent compared to 15-20 per cent in the past.

The country’s coffee industry is raising the value of coffee beans by speeding up the processing of powdered and instant coffee and other products.

Processed coffee products from Việt Nam are sold in many international markets.

The G7 instant coffee of Trung Nguyên, for example, has passed the requirements of Walmart Stores, Inc and is now sold at Walmart stores in many countries such as Chile, Brazil, Mexico and China.

Lương Văn Tự, chairman of the Việt Nam Coffee and Cocoa Association, said China is one of the most important markets for Việt Nam’s processed coffee.

Coffee consumption in China is rising rapidly, particularly among younger consumers exposed to Western coffee drinking habits, he said.  

Việt Nam targets producing about 50,000 tonnes of powdered coffee and 255,000 tonnes of instant coffee by 2020, according to the Ministry of Agriculture and Rural Development’s Department of Processing and Trade for Agro-Forestry-Fisheries Production and Salt Production.

Last year, Việt Nam exported 1.79 million tonnes of coffee products with total value of $3.36 billion, up 33.6 percent in volume and 25.6 per cent in value compared to 2015.

Of the total exports, processed coffee accounted for $350 million.
Newer News
09:49 Shares close in red on selling pressure
20/06 VN stocks drop amid weak investor sentiment
19/06 VN-Index drops by 2.87 percent on June 18
15/06 VN-Index suffers big loss, market ends in red
14/06 VN-Index rises nearly 10 points on June 13
13/06 VN-Index loses over 18 points on June 12
12/06 VN-Index gains slightly to 1,039 points on June 11
09/06 VN-Index maintains uptrend on week’s last trading day
08/06 Stocks progress, liquidity still weak
07/06 VN-Index rises for fifth consecutive day
Older News
10/02 Momentum wanes on VN-Index
10/02 Dollar buoyant after Trump's 'phenomenal' tax plan pledge
09/02 Investors must shape up to avoid losses: experts
09/02 Local shares advance marginally
08/02 Shares up on positive market outlook
07/02 Over 20 million foreign investors granted trading codes
07/02 HOSE launches first trading session in lunar New Year
06/02 New regulations issued on securities margin trading
06/02 VN stocks to rise on lunar year optimism
03/02 Stocks gain on first day after Tet
Newsletter Signup
Top Stories
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Draft decree on State monopoly in trade submitted to Government
CPI ups 0.46% in January
Market Update
Last updated at 11:31:28 AM
VN-INDEX 976.15 +6.75/+0.70%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.