Production is estimated to increase by about 4.5% to 1.6 million tons in the 2017-2018 season, Anh told the media.Vietnam’s coffee exports will also be helped by smaller supplies from other countries, according to Anh. The country is the biggest coffee exporter behind Brazil.
Vietnam exported $3.2 billion worth of coffee last year
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The United States Department of Agriculture (USDA)was also positive about Vietnam’s coffee production, saying the country would produce a record crop in 2017-2018 at 29.9 million bags, up from the body’s prior estimate of 28.6 million bags and from the 26.7 million bags produced in 2016-2017.
To strengthen the country’s global position, Minister of Agriculture and Rural Development Nguyen Xuan Cuong recently signed Decision No.4653/QD-BNN-KHCN approving a framework scheme to develop high-quality Vietnamese coffee products in 2018-2023, with a vision towards 2030.
The scheme proposes support policies aimed to help increase yields, improve quality and enhance the added value of coffee products nationwide until 2020, giving priority to the Central Highlands, North Central region, midlands, and mountainous areas in the north. Its goals include promoting linkages between farmers and businesses to develop high-quality commercial coffee growing areas and upgrade processing, storage, and preservation facilities. Additionally, the new arrangements will increase incomes for coffee farmers by enhancing product value.
Under the plan, farmers’ average income is expected to grow by 5% by 2020 and 7% by 2023 compared to 2013-2014. The total budget for the scheme is VND170 billion, VND110 billion of which will come from the state budget and VND60 billion from businesses, farmers, and credit institutions.
The scheme also focuses on enhancing the competitiveness of domestic coffee production and supply chains in the regional and global markets as well as raising the export price of Vietnamese coffee to the regional and international level by 2020.
President of Vietnam Coffee Association Luong Van Tu believes there is still room for the coffee sector to increase its added value, however, the sector needs to seek large capital resources and take simultaneous measures to increase crop yields and improve the quality of the processed products.
The coffee sectors should strive for the two major goals of strengthening Vietnam’s position as the world’s second-largest exporter of coffee beans and increasing the export of processed products to raise export revenue to US$6 billion by 2030 (double of the 2017 results), he said.
Tu also highlighted the necessity of developing high-yield and quality coffee varieties that can withstand droughts and climate change. Vicofa has asked the government to establish a specific fund for coffee sector development and promulgate standards for roasted, ground, and instant coffee.
Experts share the opinion that to develop in a sustainable manner, the coffee sector needs to intensify brand building and trade promotion activities, increase domestic sales, and improve the quality of coffee beans.
Last year, Vietnam’s coffee export quantity was 1.4 million tons, an annual decrease of 19%. The year saw the average price of coffee exports reaching $2,249 per ton, up 20.1% year-on-year. As such, despite lower quantity, the export value was at $3.2 billion, down just 2.7% annually.
