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Export of deep-processed coffee: 'Key' to building a sustainable brand 

 Tuesday, December 31,2024

AsemconnectVietnam - Export turnover of deep-processed coffee products is growing strongly and this is considered an unchangeable trend in coffee export activities.

Enterprises increase exports of deep-processed products
In mid-December, Vietnam Coffee Corporation announced export of the first batch of deep-processed coffee products under Vietnam Coffee brand to China. This batch includes deep-processed coffee products under the Vietnam Coffee brand - the main brand of Vietnam Coffee Corporation (Vinacafe), produced from clean coffee beans, carefully selected in the Central Highlands, a famous raw material region of Vietnam.
Exporting deeply processed coffee products under Vietnam Coffee brand not only increases economic value but also affirms transformation of Vietnam Coffee Corporation (Vinacafe). This is also result of Vinacafe's efforts to invest in processing technology and strict quality control.
Previously, in early December 2024, EDE Farm Trading and Service Company Limited held a product introduction ceremony and exported a 20-foot container containing 18,000 packages of finished roasted and ground coffee under the MISS EDE brand to the US market.
MISS EDE is a coffee brand of EDE Farm Trading and Service Company Limited. The 20-foot container exported this time contains 18,000 packages of finished roasted and ground coffee under the MISS EDE brand that will be exported to the US market. This is a complete coffee product, packaged in Vietnam, not raw coffee or processed labels.
These products are all coffee processed according to a high-quality fermentation process, with a production line certified by the US FDA, originating from sustainable farming areas that do not encroach on natural forests, certified by EUDR and managed by Simexco Dak Lak - a strategic partner and export consignee of MISS EDE.
According to data from Vietnam Coffee - Cocoa Association (VICOFA), Vietnam's processed coffee exports in the 2022-2023 crop year reached 89,941 tonnes, with a turnover of 511 million USD. This output accounts for 5.4% of total exports (not converted to green coffee) but value accounts for 12.5%. Average export price in this crop year is 5,676 USD/tonne.
In 2023-2024 crop year, export output increased sharply by 42%, to 127,543 tonnes, accounting for 8.8% of total export volume, while the value contributed nearly 18%, thanks to the average export price increasing to 7,616 USD/tonne.
In November 2024 alone, enterprises exported 10,004 tonnes of processed coffee, with a turnover of more than 100 million USD. Although output only accounted for 16.5%, the export value accounted for 26.8% thanks to the export unit price reaching 10,025 USD/tonne, the highest level ever.
The trend cannot change
Talking to reporters of Industry and Trade Newspaper, Mr. Luong Van Tu - Former Chairman of Vietnam Coffee - Cocoa Association said that currently, the world's trend is that young generation prefers to drink coffee rather than tea. Even in Vietnam, it can be seen that there has never been a time when the number of Vietnamese coffee shops has developed so quickly, almost everywhere there are coffee shops, young generation of the world prefers to drink coffee rather than tea, demand for consumption increases every year. Normally, International Coffee Organization (ICO) forecasts an increase depending on the year, usually from 2-4%/year of increased demand for consumption. Meanwhile, impact of weather fluctuations and climate change changes environment of coffee, for example, weather is getting hotter, there are areas where coffee was grown before but now it can no longer be grown. Vietnam has a different factor from other countries in the world in that it has other plants that are more effective, so the Central Highlands have switched to growing other crops such as lotus, pepper, avocado, durian, etc. This causes the area to remain unchanged but the density of the plants to decrease, leading to a decrease in coffee output in Vietnam of about 10%.
"However, to develop coffee industry sustainably, we cannot only rely on raw material area, but businesses must closely cooperate with farmers to ensure output and quality of raw material area. In addition, we need to increase investment in processing and exporting processed coffee such as roasted, ground, instant coffee, etc. with high value" - Mr. Luong Van Tu shared.
Mr. Do Ha Nam - Vice President of Vietnam Coffee - Cocoa Association shared that only by deep processing and associating products with business brands can Vietnamese coffee be truly recognized in the international market. Previously, Vietnam mainly exported raw coffee, so foreign consumers, although enjoying Vietnamese coffee, did not know origin of the product.
On business side, Mr. Hoang Danh Huu - founder of the brand, CEO of MISS EDE said that in the 5 years of establishment, MISS EDE has continuously organized domestic and foreign promotion activities. With support of Department of Industry and Trade of Dak Lak province and the People's Committee of Buon Ma Thuot city, MISS EDE has participated in national and international trade promotion programs. From there, MISS EDE has approached foreign buyers, penetrating the markets of Thailand, Korea, and the United States.
Ceremony of exporting the first container of roasted and ground coffee of the MISS EDE brand to the US market is an important turning point for the business, a small contribution to coffee industry and agricultural products of Dak Lak province in particular and the whole country in general. To convince US partners to import deeply processed finished products, MISS EDE must meet all food safety and hygiene standards. In addition, the enterprise is also a pioneer in searching for and importing coffee products from farming areas that meet all sustainable development standards. Investing in processing is the solution that MISS EDE is determined to implement to position the Vietnamese coffee brand in the market.

Source: Vitic/ congthuong.vn
 

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