Coffee continuously increased prices, making it difficult for coffee distribution businesses because orders were reduced. Enterprises specializing in manufacturing finished products must manage and expand the segment as high quality products, meet sustainable coffee standards, non -invasive natural forests.
Adjustment of selling prices, orders still decrease
In Dak Lak, Mr. Hoang Doanh Huu, CEO of Miss Ede Coffee Business, shared before an extraordinary price increase in the past two years of the coffee industry, an enterprise specializing in finished products is a chain.
In fact, with the increase in domestic raw coffee price higher than 300%, while the finished consumer products in the market do not accept a high increase is a major barrier for groups of businesses. Currently, the company has adjusted the retail price, but the adjustment level cannot exceed 20% compared to the time when the price of raw materials has not increased.
Sharing with KTSG Online, a representative of the Department of Industry and Trade of Dak Lak province, said that in 2024, the province exported nearly 228,000 tons of coffee with a turnover of more than $ 882 million (down 25% in volume and an increase of 16% in turnover compared to 2023).
Currently, coffee prices and some key agricultural products of the province such as durian and pepper have increased sharply, especially in the past two years with an increase of 150-250%.
However, this also poses a big challenge for exporting enterprises in competition to buy raw materials to meet the previous signed contracts. In addition, consumers tend to reduce consumption, domestic roasters will face a sharp increase in coffee prices, appearing poor quality products to reduce prices.
Mr. Y Pot Nie, General Director of Ede Cafe Joint Stock Company also confided, when the price of coffee is from 40,000 VND/kg to the present 145,000 VND/kg, many old customers after listening to the quotation, turning their backs to choose the lower price side.
The company determined to choose the segment as a niche that aims to high quality, prioritizing the value instead of prices. However, before many fluctuations from the market, customers also repeatedly pay the price. “The selling output every month is still decreasing 5-10%, there are some customers who are hesitant to order a few dozen, a few hundred kilograms instead of the volume of tons of tons as the previous phase and we also have to spend a lot of effort to explain to customers why the price of coffee is so high,” he emphasized.
He added that there are cases where businesses in Hanoi have signed a contract, but when the price rises, they turn to find other partners to be more competitive. After 1.2 times of importing goods, customers have come back and continue to cooperate even though his business only changes about 5-10% of the price premises to maintain capital, in accordance with the general situation.
Find long ways with sustainable value
With Miss Ede, Mr. Huu said the business divided into two groups of solutions for the domestic and exported retail market. With the domestic consumer retail market, businesses are required to keep the terminal retail price and anchor at the price of leading businesses. In terms of export markets, businesses can easily adjust the price because customers most purchases based on the price of international commodity trading floors.
The company accepts sharply reducing profit margin, following the market price fluctuations and the situation of global economy in order to offer internal analysis to decide to buy inventory storage at the right time.
For export customers, instead of choosing to compete directly in the group of commercial coffee products with the presence of giants in the long -standing industry, the company chooses a new customer segment with strict requirements on “sustainable coffee”, “non -invasive coffee with natural forests with EURD certificates”. From this advantage, the company has welcomed more than 50 import partners in the EU market to contact to buy goods.
It is known that he has the advantage of inventory of raw materials with sustainable certificates, non -invasive natural forests from earlier through agreement with Simexco Dak Lak supplier from 5 years and earlier. “This can be considered as a venture capital of the business in the past and at the present time is the success of the business,” he emphasized.
Mr. Y Pot Ni, also tried to find new markets and cut unnecessary operating costs. Specifically, the labor force replaced from full time to part -time, and applied labor -reducing machinery technology. In addition, the expenses for promotion and trade promotion are also streamlined by him to reduce 10-15%, instead focusing on production, sales and increase in revenue.
Representatives from the Department of Industry and Trade of Dak Lak province pointed out that some business solutions refer to adapting to the upcoming developments such as planning and building raw areas to provide mainly for the needs of processing and producing agricultural products for export of goods, fully meeting technical requirements from cultivation to harvesting, preserving, processing and processing.
Enterprises need to consider research to expand their export markets with potential and large -scale partners with additional commodity structure. The input source does not directly compete with the goods of the province to diversify export markets, reducing dependence on certain markets.
Mr. Le Duc Huy, Chairman of the Board of Members of Simexco Dak Lak, an enterprise for more than 30 years in the coffee industry, said that the decision of the enterprise invested in the sustainable supply chain and green conversion has long helped businesses create strong competitive advantages. He said as soon as he embarked on the green and digitized journey, he considered it an investment and responsibility of the big company.
“Although the price of coffee is higher, it is still very running. Compliance from the beginning of international standards, more stringent inspection requirements on product traceability to Europe have helped businesses convince consumer and shoppers, ”Huy said.
However, new standards are constantly updated and improved, the team must pioneer and proactively improve the process to meet. Regarding the strategy of ensuring the value of the industry in the future, he pointed out from the surplus, the parties can invest in the roasting and processing factory with a variety of roasted and dissolved products instead of raw export.
