Industry News
Coffee plan focuses on processed products

The Ministry of Agriculture and Rural Development (MARD) has unveiled a master plan (until 2020 with vision extended to 2030) to develop the coffee industry, focusing mainly on processing as the main value-adding measure.

Vo Thanh Do, deputy head of the ministry's Agro-Forestry, Seafood Processing and Salt Industry Department, said that although Viet Nam is the leading country in robusta coffee production and export, it lagged behind in making value additions to its produce.

The ministry will focus on improving the quality and hygiene of existing roasted and ground coffee products consumed domestically while increasing productivity to 50,000 tonnes (90 per cent of the designed capacity) in 2020 from the current 26,000 tonnes (50 per cent of the designed capacity).

Another priority is elevating instant coffee to become a high value-added product for export and domestic consumption, with an output of 55,000 tonnes by 2020 and 120,000 tonnes by 2030. Production of mixed coffee products like three-in-one and two-in-one sachets is expected to reach over 200,000 tonnes by 2020 and 230,000 tonnes by 2030.

Over the next 15 years, processed coffee products for export and domestic consumption are expected to generate US$1 billion, accounting for 25 per cent of the production value.

The plan is to encourage instant coffee processing in the Central Highlands, Southeast and Mekong Delta regions and develop mixed instant coffee production in the southern central coastal and northern mountainous areas along with the three above-mentioned regions.

Do said the plan accords special importance to domestic market development, particularly in the northern localities, to increase consumption rate to 25 per cent by 2030 from the below 10 per cent at present.

Trade promotion activities will be fostered to enhance coffee penetration of international markets with extra focus on Northeast Asia, Eastern Europe and ASEAN nations.

The rate of coffee beans processed on an industrial scale will be increased to 40 per cent this year, 70 per cent by 2020 and 80 per cent by 2030. The ministry has set its sights on yearly revenues of $3.8 million to $4.2 billion from coffee exports by 2020 and $4.5 billion by 2030.


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