In the staunchly competitive coffee industry, leading economistsforecast Vietnam is set to become the world’s largest coffee exporter,providing the Southeast Asian nation can surmount its shortcomings,radio The Voice of Vietnam (VOV) reported.
The Ministry ofAgriculture and Rural Development (MARD) reports Vietnamese coffeeexports in the seven months leading up to August jumped 26.9 percent involume and 21.9 percent in value on-year.
The country shipped atotal of 1.12 million tonnes of coffee beans to foreign markets duringthe period grossing 2.31 billion USD in revenue at an average salesprice of 2,043 USD/tonne, 4.84 percent lower than the previous year’sfigure.
Key coffee importers included Germany and the US with Belgium doubling its coffee imports over last year’s figures.
Inrecent years, coffee has been one of Vietnam’s key export itemsachieving high revenue. The local coffee industry aims to record higherexport growth in the future, with about 95 percent of its output beingshipped abroad.
Currently, Vietnam is the world’s largestexporter of Robusta coffee. It ranks second in coffee export volume andthird in value. Economists say Vietnam is on a path to becoming theworld’s largest coffee exporter within the next few years.
Accordingto a recent report on exports by the Ministry of Industry and Trade(MoIT), Vietnamese coffee has sharpened its competitive edge thanks tofavourable climate conditions, lower-cost production and a bumper coffeecrop. However, product quality remains low due to out-dated harvesttechnology and poor processing facilities.
Additionally,Vietnamese coffee suffers from lack of brand name recognition as localexporters’ marketing skills are still limited and over 90 percent ofcoffee products are essentially unprocessed materials with low addedvalue, MARD reports.
With such disadvantages, Vietnamese coffee’sexport price is lower than the world’s average. Nevertheless, thanks toits firm foothold in the global market, Vietnam holds great potentialfor improving its coffee quality and recording higher exportturnover.
Economists suggest Vietnam improve its production chainand distribution networks, from producing, processing to marketingprocesses, in order to increase export value for Vietnamese coffee.
NguyenThi Thu Hang, a senior advisor in export evaluation and capacitybuilding for small-and-medium-sized enterprises, raised her concern overthe shrinking coffee cultivation area as aging coffee trees arebecoming prevalent and irrigation networks stay outdated.
Thelocal coffee industry should increase product quality by investing morein research, post-harvest technology, and processing facility. It isalso equally essential to apply sustainable standards for coffeeproduction and supply high-quality products on request despite lowconsumption, Hang said.
Other experts recommend the industry moreeffectively control coffee growing areas to avoid an imbalance betweensupply and demand. Coffee farmers should also be required to follow astrict protocol to meet rising requirements of consumers.
Accordingto industry experts, sustainable coffee export growth will only beachieved if domestic coffee producers, processors and exporters increaseproduct quality in line with international standards.-VNA
The Ministry ofAgriculture and Rural Development (MARD) reports Vietnamese coffeeexports in the seven months leading up to August jumped 26.9 percent involume and 21.9 percent in value on-year.
The country shipped atotal of 1.12 million tonnes of coffee beans to foreign markets duringthe period grossing 2.31 billion USD in revenue at an average salesprice of 2,043 USD/tonne, 4.84 percent lower than the previous year’sfigure.
Key coffee importers included Germany and the US with Belgium doubling its coffee imports over last year’s figures.
Inrecent years, coffee has been one of Vietnam’s key export itemsachieving high revenue. The local coffee industry aims to record higherexport growth in the future, with about 95 percent of its output beingshipped abroad.
Currently, Vietnam is the world’s largestexporter of Robusta coffee. It ranks second in coffee export volume andthird in value. Economists say Vietnam is on a path to becoming theworld’s largest coffee exporter within the next few years.
Accordingto a recent report on exports by the Ministry of Industry and Trade(MoIT), Vietnamese coffee has sharpened its competitive edge thanks tofavourable climate conditions, lower-cost production and a bumper coffeecrop. However, product quality remains low due to out-dated harvesttechnology and poor processing facilities.
Additionally,Vietnamese coffee suffers from lack of brand name recognition as localexporters’ marketing skills are still limited and over 90 percent ofcoffee products are essentially unprocessed materials with low addedvalue, MARD reports.
With such disadvantages, Vietnamese coffee’sexport price is lower than the world’s average. Nevertheless, thanks toits firm foothold in the global market, Vietnam holds great potentialfor improving its coffee quality and recording higher exportturnover.
Economists suggest Vietnam improve its production chainand distribution networks, from producing, processing to marketingprocesses, in order to increase export value for Vietnamese coffee.
NguyenThi Thu Hang, a senior advisor in export evaluation and capacitybuilding for small-and-medium-sized enterprises, raised her concern overthe shrinking coffee cultivation area as aging coffee trees arebecoming prevalent and irrigation networks stay outdated.
Thelocal coffee industry should increase product quality by investing morein research, post-harvest technology, and processing facility. It isalso equally essential to apply sustainable standards for coffeeproduction and supply high-quality products on request despite lowconsumption, Hang said.
Other experts recommend the industry moreeffectively control coffee growing areas to avoid an imbalance betweensupply and demand. Coffee farmers should also be required to follow astrict protocol to meet rising requirements of consumers.
Accordingto industry experts, sustainable coffee export growth will only beachieved if domestic coffee producers, processors and exporters increaseproduct quality in line with international standards.-VNA
