PARADOX: EVERY YEAR VIET NAM IMPORT 60,000 TONS OF COFFEE
As a coffee-producing powerhouse, Vietnam annually imports an average of 60,000 tonnes of processed coffee from Brazil, the United States, China, Indonesia, Laos and Cambodia, while 90% Vietnam is a rough export. This paradox has made coffee growers have no stable output and lack of a Vietnamese coffee brand on the world map.
Imports increased sharply
At the recent industry and industry summit, Prime Minister Nguyen Xuan Phuc gave a concrete example of Vietnam’s coffee. That is the crude export paradox, while consumers drink a cup of coffee to pay 2-3 USD, equivalent to 1 – 2kg of coffee in the form of raw materials.
According to the Ministry of Agriculture and Rural Development, the area of coffee in 2017 is 664.6 thousand ha, increasing by 14.1 thousand ha (+ 2.2%); productivity increased by 3.1%; Sugar output in 2011 reached 1.42 million tons, worth $ 3.21 billion, down 20.2% in volume. volume and down 3.8% in value over the same period in 2016.
According to the Ministry of Agriculture and Rural Development, the domestic coffee market has fluctuated in a downward trend, especially since November 2017, the long and deep decline of coffee prices started falling below 40,000 VND / kg. Domestic coffee prices are on the rise as domestic supplies are increasing due to strong harvest and weak purchasing power from importers because of the relatively high volume of imported coffee stocks in importers.
According to statistics of the Ministry of Industry and Trade, despite the “power” in the world in coffee export (accounting for 19% of global coffee market), only after Brazil, however, imported coffee It is constantly increasing, mainly in the form of roasting, brewing. It is worrisome that 90% of Vietnamese coffee exports are in raw form: coffee beans. The percentage of coffee processing is still very modest, accounting for about 10% of output.
Processing weak, “forget” home
The Ministry of Agriculture and Rural Development (MARD) has estimated that over 80% of coffee production is pre-dried in households with temporary drying yards such as yards, combined yards or tarpaulins. Due to backdated machinery and equipment of the people, the harvested material does not meet the standards of ripeness, coffee and other impurities … resulting in low quality of coffee. While exporting mainly in raw form, Vietnamese coffee is not branded, and can even be used as raw materials for many countries to process and re-export in Vietnam.
Although the number of enterprises in the coffee business of Vietnam is very large, but in fact only few well-known enterprises, build the brand and have processing plants such as JSC Group Trung Nguyen, Nestle Vietnam Co., Ltd., Ngon Vietnam Coffee Co., Ltd. …
“Recently, a series of coffee companies have long history of Vietnam bankrupt when foreign enterprises dominate, control raw materials and domestic coffee market” – the boss of the Central coffee brand Nguyen Dang Le Nguyen Vu said. According to Vu, in the world, the image of Vietnamese coffee is very bad, even losing its geographical mark due to the propaganda intent of foreign buying companies, leading to lower prices than with other countries. From being the source of raw materials, our people become employees on their land.
According to Luong Van Tu, Chairman of the Vietnam Coffee and Cocoa Association, the coffee area is large but scattered so it is difficult to invest in cultivation and processing techniques. In addition, there are too many export enterprises (more than 150) but the quality of coffee is not stable, most of the coffee is not processed …
“To develop coffee sustainable development must have a roadmap to implement eight groups of solutions for productivity, quality, value added. It is necessary to choose the coffee varieties to replace the old coffee area with high productivity and quality; boosting investment in factories, instant coffee processing technology; Promoting the branding and promoting trade at home and abroad, raising domestic consumption to 20-30%. In parallel, it is to improve the efficiency of import-export business, strive to sell coffee with the same quality at world prices … “- said Mr. Tu.
Minister of Agriculture and Rural Development Nguyen Xuan Cuong acknowledged that up to now only 10% of Vietnam’s coffee production is used for deep processing such as milling, powder, dissolving … mainly sold in the domestic market, 90% The export of crude to the world market should not build the brand and trade value is very low.
Cuong also said that each year the world spent about $ 500 billion for consumer coffee, but turnover from Vietnam’s coffee exports reached only $ 3.4 billion is too modest, showing commercial value is too low compared to production (in 2017 reached over 1.5 million tons, while the world only about 9 million tons). The fact proves that the coffee price is very uncertain and sharply lower than 40,000 VND / kg.