Coffee sector aims to increase added value

The coffee sector aims to develop the coffee processing system in a bid to increase the added value of domestic coffee products, an official has said.

The focus will be on investment in advanced technologies to enhance productivity and product quality in the period from now to 2020 instead of building new processing facilities, according to Vo Thanh Do, Deputy Director of the Agro-Forestry, Seafood Processing and Salt Industry Department under the Ministry of Agriculture and Rural Development.

By 2020, finished processed coffee products such as roasted and ground coffee and instant mixed coffee are expected to account for 25 percent of the total coffee beans output, of which the total yearly productivity of roasted and ground coffee will reach 50,000 tons and that of instant coffee will be 255,000 tons.

Photo for illustration. Photo: news.zing.vn

According to the Central Highlands Steering Committee, the coffee and pepper sector currently exports mostly unprocessed products, which have limited added value.

In the 2013-2014 crop, nearly 1.4 million tons of coffee were shipped abroad, generating only USD 3.55 billion.

Chairman of the Vietnam Coffee and Cocoa Association Luong Van Tu said a kg of coffee beans earns nearly USD 2, equivalent to the price of just one coffee cup in coffee importing countries, while one kg of coffee beans can make 50 cups.

There are currently 265 coffee processing firms across the country with a combined annual capacity of nearly 100,000 tons of coffee products. However, the majority are not running at full capacity.

Coffee trees are currently grown on more than 641,700 hectares, producing nearly 1.4 million tons of coffee beans each year. The Central Highlands accounts for 573,000 hectares and more than 1.3 million tons.

The ministry has set its sights on yearly revenues of USD 3.8-4.2 billion from coffee exports by 2020 and USD 4.5 billion by 2030.