ID :
152984
Fri, 12/10/2010 - 09:47
Auther :
Shortlink :
http://m.oananews.org//node/152984
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Vietnam`s coffee industry should invest in more professional
HCM City (VNA) - Vietnam's coffee industry should invest in more professional facilities, adequate irrigation methods and efficient watering systems to gain a stronger foothold in the global market, speakers at the Asia International Coffee Conference (AICC) said in HCM City.
Speaking at the 16 th annual AICC conference on Dec. 8, Luong Van Tu, chairman of
the Vietnam Coffee-Cocoa Association (VICOFA), said the industry has suffered lower
export profits because of inconsistent quality.
The two-day conference is being attended by domestic and foreign experts, as well
as coffee roasters, retailers, traders and producers.
Coffee selling prices have at times been lower than production costs, causing
farmers' income to drop. With such low revenue, many of them have been unable to
reinvest in their plantations, Tu said.
Moreover, current coffee cultivation practices in Vietnam are seen as
unsustainable, leading to high production costs, soil degradation and lower yields.
"Adverse weather and ageing coffee bushes have also contributed to low quality of
Vietnam 's coffee. About 30 percent of the country's coffee bushes are more than
20 years old," Tu noted.
Severe competition from other countries is another challenge faced by the local
industry.
To address these concerns, VICOFA said it will provide market information and
organise promotions for exporters.
VICOFA has also asked the Government to support coffee growers by offering
preferential loans for a period of six or nine months.
Jose Sette, executive director of the International Coffee Organisation, said many
countries face similar challenges, including economic pressures such as interest
rates, exchange rates and labour costs.
Other issues include infrastructure, management of pests and diseases and
development of new coffee varieties that can adapt to climate change and resist
disease.
Better fertility, erosion control, improved harvesting techniques and post-harvest
processing are also essential for the sustainable development of the coffee
industry, Sette said.
The top 10 coffee producers are Brazil , Vietnam , Indonesia , Colombia ,
India , Mexico , Ethiopia , Guatemala , Honduras and Uganda .
Doan Xuan Hoa, deputy head of the Ministry of Agriculture and Rural Development's
Agro-Processing and Trade Department, said that the Vietnamese coffee industry has
showed weaknesses in cultivation, processing and exporting.
"Our coffee has high status, but the price offered for it is unstable in the global
market because of the inconsistent quality," Hoa said.
He also noted that the Vietnamese coffee sector has not established a professional
production and trade system that applies modern trading methods such as forwards,
options and future exchange.
Only 20 of the 168 exporters nationwide export large quantities, and there is only
one local coffee exchange centre of Buon Ma Thuot.
The competitiveness of coffee producers and traders remains at a low level, and
traders do not have financial resources to buy coffee for storage so they can wait
for a good price to sell, Sette said.
"The companies need better coffee storage to ensure benefits from exports," he
noted.
Many companies have not paid attention to enhancing quality and applying high
standards, he added.
"Linkages between processors and traders as well as companies and farmers are weak.
Farmers do not have enough information about the market and face many risks in
their production," he said.
Jonathan Clark, general director of Dakman Coffee Exporter, said Vietnam should
improve coffee quality to improve its image in the world market.
Nguyen Duc Tuan Vinh, general director of Nedcoffee Vietnam , said there should
be rewards and penalties in the quality-control system. This would help to add
value to Vietnamese coffee products.
Vietnam is the largest robusta producer worldwide, about 500,000ha in area,
which yields 1 million tonnes of green coffee each year and more than 1.5 billion
USD in export turnover.
Vietnamese coffee is sold in 100 countries and territories, including big markets
such as Spain , Japan , the Republic of Korea and the US as well as new
markets like Africa and Eastern Europe . The coffee industry represents 2 percent
of Vietnam ’s GDP.
Speaking at the 16 th annual AICC conference on Dec. 8, Luong Van Tu, chairman of
the Vietnam Coffee-Cocoa Association (VICOFA), said the industry has suffered lower
export profits because of inconsistent quality.
The two-day conference is being attended by domestic and foreign experts, as well
as coffee roasters, retailers, traders and producers.
Coffee selling prices have at times been lower than production costs, causing
farmers' income to drop. With such low revenue, many of them have been unable to
reinvest in their plantations, Tu said.
Moreover, current coffee cultivation practices in Vietnam are seen as
unsustainable, leading to high production costs, soil degradation and lower yields.
"Adverse weather and ageing coffee bushes have also contributed to low quality of
Vietnam 's coffee. About 30 percent of the country's coffee bushes are more than
20 years old," Tu noted.
Severe competition from other countries is another challenge faced by the local
industry.
To address these concerns, VICOFA said it will provide market information and
organise promotions for exporters.
VICOFA has also asked the Government to support coffee growers by offering
preferential loans for a period of six or nine months.
Jose Sette, executive director of the International Coffee Organisation, said many
countries face similar challenges, including economic pressures such as interest
rates, exchange rates and labour costs.
Other issues include infrastructure, management of pests and diseases and
development of new coffee varieties that can adapt to climate change and resist
disease.
Better fertility, erosion control, improved harvesting techniques and post-harvest
processing are also essential for the sustainable development of the coffee
industry, Sette said.
The top 10 coffee producers are Brazil , Vietnam , Indonesia , Colombia ,
India , Mexico , Ethiopia , Guatemala , Honduras and Uganda .
Doan Xuan Hoa, deputy head of the Ministry of Agriculture and Rural Development's
Agro-Processing and Trade Department, said that the Vietnamese coffee industry has
showed weaknesses in cultivation, processing and exporting.
"Our coffee has high status, but the price offered for it is unstable in the global
market because of the inconsistent quality," Hoa said.
He also noted that the Vietnamese coffee sector has not established a professional
production and trade system that applies modern trading methods such as forwards,
options and future exchange.
Only 20 of the 168 exporters nationwide export large quantities, and there is only
one local coffee exchange centre of Buon Ma Thuot.
The competitiveness of coffee producers and traders remains at a low level, and
traders do not have financial resources to buy coffee for storage so they can wait
for a good price to sell, Sette said.
"The companies need better coffee storage to ensure benefits from exports," he
noted.
Many companies have not paid attention to enhancing quality and applying high
standards, he added.
"Linkages between processors and traders as well as companies and farmers are weak.
Farmers do not have enough information about the market and face many risks in
their production," he said.
Jonathan Clark, general director of Dakman Coffee Exporter, said Vietnam should
improve coffee quality to improve its image in the world market.
Nguyen Duc Tuan Vinh, general director of Nedcoffee Vietnam , said there should
be rewards and penalties in the quality-control system. This would help to add
value to Vietnamese coffee products.
Vietnam is the largest robusta producer worldwide, about 500,000ha in area,
which yields 1 million tonnes of green coffee each year and more than 1.5 billion
USD in export turnover.
Vietnamese coffee is sold in 100 countries and territories, including big markets
such as Spain , Japan , the Republic of Korea and the US as well as new
markets like Africa and Eastern Europe . The coffee industry represents 2 percent
of Vietnam ’s GDP.
