Coffee is widely exported to the EU

According to the forecast of the Ministry of Industry and Trade, the coffeecashew nuts, rubber, vegetables, pepper, rice and tea will continue to be strong growth products in 2022. In which, the EU is a market that is forecasted to have strong growth.

In the Central – Central Highlands region, which is considered the “headquarters” of coffee in Vietnam, the export of coffee to the EU has many signs of improvement.

When talking about coffee growing regions in Vietnam, it is impossible not to mention the Central Highlands, especially Buon Ma Thuot – Dak Lak, which is considered the world’s leading export Robusta coffee “bowl”. Positive signals from the market show that the number one product, coffee, will continue to take advantage of the preferential tax rates under the EU-Vietnam Free Trade Agreement (EVFTA) to increase market share. in the total coffee import demand of about 10 billion USD per year that the EU has.

People in Dak Nong harvest coffee. (Photo: VNA)

According to statistics of the General Department of Customs, from the beginning of the year to now, the country’s coffee exports have reached nearly 400,000 tons, earning over 824 million USD, the average price reaching more than 2,219 USD/ton; an increase of nearly 31% in volume, an increase of approximately 66% in turnover and an increase of nearly 27% in price over the same period in 2021.

Germany is the largest market for Vietnamese coffee, accounting for nearly 13% of the country’s total coffee export volume and turnover, reaching more than 47,000 tons. Followed by Belgium, Italy, accounting for nearly 10% and 7% respectively of the total coffee export volume and turnover of the whole country.

EVFTA has a positive impact on the coffee industry in the Central Highlands

These are clearly good signals from the coffee export market right in the first months of this year. The EU-Vietnam Free Trade Agreement (EVFTA) has brought positive impacts to the export of the coffee industry across the country, especially in the Central Highlands.

However, EVFTA is not a universal key, because one thing has not changed, that is, even with a Free Trade Agreement, the EU always attaches importance to and puts product quality requirements on top. Therefore, both coffee growers, as well as export processing enterprises, both take advantage of this advantage and consider this a strong motivation to constantly improve the value of coffee in the Central Highlands.

As one of the leading coffee exporters in Vietnam with about 70,000 tons per year, Vinh Hiep Co., Ltd in Gia Lai is a pioneer in building a chain of links to create products. consistent to meet market requirements.

“In terms of the chain link of Vinh Hiep in Gia Lai, the past years have done well since the policies and trade agreements have not been opened. And now when the trade agreements have opened a lot, the rate has increased. gradually stricter about the environment, people, fair to trace the origin of geographical indications”, said Mr. Thai Nhu Hiep, Director of Vinh Hiep Co., Ltd.

The biggest advantage in this Agreement is not only the preferential tax rate, but also clearer regulations, so that if players comply, it will bring benefits in the long run.

“In the near future, we will develop a project to export agricultural products to the EU, have a strategy to make agricultural products stable in Europe’s large distribution system, not go through each shipment of enterprises. together, the cost is low, the competitiveness is greater, and we must form an alliance of Vietnamese coffee exporters, especially in the Central Highlands,” said Minister of Agriculture and Rural Development Le Minh Hoan. shall.

Along with promoting the organization of coffee production, linking product consumption according to international certification standards, in the coming time, the Central Highlands provinces need to strengthen linkages to build a sustainable coffee industry.

The EVFTA has opened up opportunities for Vietnamese agricultural products, including coffee, to enter this market. The remaining problem is the perception of manufacturing, processing and exporting enterprises in front of opportunities and how to seize it.

In fact, there has been a strong change in thinking in the chain of coffee industry. To make this opportunity a reality, ensuring and improving product quality must be a top priority.

Coffee-growing regions, mainly in the Central Highlands, are implementing many solutions to meet the strict quality standards of the EU market.

Notably, farmers here have built a landscape coffee production model that is environmentally friendly, no longer running after quantity but towards quality. So what is the landscape coffee model, how are farmers and businesses applying many organic production methods, building geographical indications, linking regions, linking chains to raise the value of coffee such as coffee? how?

Enhance the value of coffee

Having 2.5 hectares of Robusta coffee, for 2 years now, Mr. Ho Van Lai in Chi Lang ward, Pleiku city, Gia Lai province has associated with a business specializing in high quality coffee processing in the province. Changing the farming method, from the care process to the collection stage according to the instructions, he found that the economic efficiency was higher than that of traditional farming.

“Do not use pesticides such as pesticides, anti-rust drugs, herbicides, only chemical fertilizers. In the future, organic fertilizers will be used to meet the standards of clean coffee. Local net price. Currently, it is 8,500 VND/kg, and when the company buys to the garden, it adds 500-600 VND/kg,” said Mr. Ho Van Lai.

Choosing high-quality coffee as a key product to start a business, Tropico Tay Nguyen Coffee Co., Ltd is currently working with coffee growing households in Gia Lai and Kon Tum to improve the quality of raw materials. Enterprises train people to cultivate coffee in an ecological and organic way. In addition, the coffee processing stage is paid special attention by the unit.

“Change the coffee-picking culture, give them supporting knowledge, including preliminary processing. If I promote their thinking, then they can do things like this”, Mr. Nguyen Hai Phong, General Director of Tropico Tay Nguyen Coffee Co., Ltd., shared.

“The Department of Science and Technology will coordinate with relevant departments and agencies to support businesses and cooperatives in coffee production, specialty coffee, organic coffee, certificate registration, access to market, develop markets, develop brands, expand linkages”, said Ms. Nguyen Thi Phuong Mai, Deputy Director of Gia Lai Department of Science and Technology.

Processing coffee for export in Dak Lak. (Photo: VNA)

In Dak Lak, a key coffee export area of ​​the country, in parallel with the direction of linking organic coffee farming, landscape coffee model – taking coffee trees as the main, design intercropping of all kinds. shade trees, windbreaks, cover crops, isolation belts, help coffee gardens more beautiful, grow better in adverse weather conditions, is also an environmentally friendly trend that is being implemented. .

“It is time for us to think differently, to activate the whole chain of coffee products and to have linkages between the Central Highlands provinces in the coffee industry to create a larger scale,” said the Minister of Agriculture and Rural Development. Rural development Le Minh Hoan emphasized.

Dak Lak province determines that landscape coffee development is an inevitable direction, with the goal that by 2025, there will be 90,000 hectares of sustainable landscape to confirm large-scale commercialization.

Forecast of coffee export growth in the coming time

According to market analysts, Vietnam’s coffee export forecast for the whole year of 2022 will continue to be positive, thanks to the rebound in coffee consumption demand, abundant supply, and favorable trade agreements. competitive advantage for Vietnamese coffee and export prices are likely to remain high.

The Import-Export Department (Ministry of Industry and Trade) forecasts that in 2022, Vietnam’s coffee exports will continue to grow positively thanks to global consumer tastes increasingly preferring healthy products.

In 2022, the volume of the EU’s coffee import market is very large, and Vietnam still has plenty of room to boost exports, especially to the world’s top 5 markets: the United States, Germany, France, Canada and Italy. advantage of export tax rates and increased supply of high-quality coffee.

Although the forecast is positive, it is clear that in order to meet strict requirements from difficult markets like the EU, our country’s coffee industry still has a lot of work to do. In addition to improving product quality, our country’s coffee industry is also focusing on improving production capacity, traceability, digitization from production to sales to enhance competitive advantages in the market. international.

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