Why Vietnam must import coffee?

As the second largest coffee exporter in the world, Vietnam coffee is mainly exported raw, not bring value chain, not worth the position.

Vietnam is the second largest coffee exporter in the world, with 26.55 million bags (60 kg / bag) in the 2016-2017 season. It is expected to export 26.65 million bags in 2017-2018. Vietnamese coffee is mainly exported raw coffee, so the value is not high (2016-2017 output 550,000 bags of roasted coffee and 2 million bags of instant coffee). Farmers also abuse fertilizer, pesticides. There are also 120,000 hectares of coffee in the country that is aging for low productivity, small fruit. Preliminary processing is limited as outdoor exposure is also a cause of quality.

More and more imports

Vietnam Industry and Consultancy (VIRAC) has just released a report showing that in the 2016-2017 season, the total import volume of Vietnam is estimated at 1 million bags (about 60,000 tons of coffee of all kinds ), up 360,000 from last season. There are 160,000 bags of instant coffee, 340,000 bags of roasted and ground coffee, 500,000 bags of coffee beans. This unit forecasts that the total volume of Vietnamese coffee to be imported will be 1.06 million bags in 2017-2018. Currently Vietnam imports coffee beans, roasted coffee, coffee from Brazil, USA, China, Indonesia, Laos, Cambodia ...

Why Vietnam must import coffee? - Photo 1.
The coffee chain appears more and more lead to the amount of ground coffee exports also increased significantly. Photo: HOANG TRIEU

Many coffee trading companies said that Vietnam has been importing coffee in increasing quantities over the years. Mr. Nguyen Quang Binh, Director of CTC Coffee Company, said that each year Laos produces about 30,000 tons of coffee, mainly Arabica, of which about half are the traders brought to Vietnam for consumption. Coffee in Cambodia produces only a few thousand tons a year in Vietnam, because it has no coffee market. According to Hoang Van Thuy, General Director of Dai Hoang Thuy Corporation, the reason coffee in Laos to Vietnam is because their prices are lower than in Vietnam to 30,000 VND / kg should be mixed with the goods in country. According to Mr. Thuy, Arabica coffee in the country only a few areas should be limited numbers, while this type of high quality should be imported for consumption.

In addition, experts said that the reason Vietnam imported coffee in recent years is due to the coffee chain in the country is developing, many foreign coffee brands are present and open chain throughout the city. Not many domestic coffee chains such as Trung Nguyen, Phuc Long, My Life Coffee, Coffee House, Passio ... have sprung up so much that roasted coffee is consumed. growing larger. US Department of Agriculture (USDA) forecasts released in early December suggest that domestic consumption of Vietnam's coffee in the 2017-2018 season will reach about 2.88 million bags, up 3.97 percent over the previous year. before.

According to Nguyen Quang Binh, most of the imported coffee is processed coffee (roasted coffee, instant coffee) but they are easy to calculate. Imported goods are high quality to serve in hotels, restaurants, coffee shops, coffee in the country can not meet. Due to the increasing demand, the import volume also increased. However, there is a sad fact that the coffee industry is focused on exporting raw materials that neglect the yard due to poor processing. Therefore, Vietnamese coffee beans go through many countries, processed and imported back at prices 2-3 times higher than the original. Previously, domestic coffee was mainly supplied by small establishments that were blended with too much corn, soybeans, and spices; The cafes are small but not the strong coffee chains. The cause is that as in many other agricultural sectors, Vietnam is not prepared for a food industry but mainly sells raw products.

Production and processing are weak

According to the Department of Agro-product Processing and Market Development - Ministry of Agriculture and Rural Development, it is estimated that over 80% of coffee production is processed dry in households with temporary drying yard such as yard, yard combined canvas or cement. Due to backdated machinery and equipment of the people, the harvested material does not meet the standards of maturity and impurities resulting in low quality of coffee. For the processing of coffee powder, the processing establishments are mainly small scale with domestic machinery and equipment, some handcrafts, not yet meet the conditions of food safety and quality. Products. On the other hand, mixing raw materials and uncontrolled chemicals leads to concerns about the quality of coffee powder.

According to this agency, the quality of exported coffee beans is low, leading to low prices for various reasons such as excessive use of fertilizers and pesticides; Coffee collection is mainly in the type of plucking branches, more green fruit; The system of coffee supply is complex, many intermediate levels leading to the situation of buying, tr
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