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Investment needed for coffee processing
Coffee companies should invest in more processing technologies to add value, the Viet Nam Coffee and Cacao Association (Vicofa) said.
"Most processing plants in Viet Nam just classify and polish the beans, as a result of which the country does not earn much profit from export of the beans despite being one of the world’s largest exporters," it said.
Regarding coffee export contracts in the remaining months of the year, Vicofa has also recommended its members to keep a close eye on the world market to avoid being pressed with prices.
From the plant until it reaches the cup, coffee goes through a clutch of other processes like sorting by colour, roasting and grinding, which few companies in Viet Nam undertake.
According to Ministry of Agriculture and Rural Development figures, 645,000 tonnes of coffee were exported in the first five months of the year for US$963 million.
This represents a 21.6 per cent increase in volume over the same period last year but 12.1 per cent fall in terms of value.
The biggest buyers of Vietnamese coffee are the US, Belgium, Germany, Spain, Italy, France, Japan and South Korea.
The price of coffee at the Buon Ma Thuot Coffee Exchange has been rising this month, going up $1,570 a tonne.
This represents an increase of $120 a tonne from last month but a contraction of more than $400 from the same time last year.
VNS
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