Mr. Luong Van Tu, Chairman of the Vietnam Cocoa Coffee Association, said that the coffee price dropped to a very low level and lasted for more than 2 years, plus the negative impacts of climate change had a great impact. to Vietnam’s coffee industry. The coffee sold is not enough to offset production costs, making farmers unable to pay interest on bank loans. To deal with this situation, businesses need to strengthen their roasting and instant coffee processing capacity to increase the value of their export products as well as for domestic consumption. From there, supporting farmers to overcome the price crisis.
Explaining the low coffee price, Mr. Gerardo Patacconi, Head of the Executive Board of the World Coffee Organization (ICO), said that the main reason is that coffee exporting countries have increased their output significantly. In which, Vietnam ranked second in terms of export has also increased its output greatly, up to 31 million bags / year. However, in the near future, coffee prices may recover as the largest coffee exporter, Brazil, actively reduces output every 2 years.
For Vietnam, in the long term, Mr. Gerardo Patacconi advised businesses to diversify processed products for export to many markets around the world, as well as for domestic consumption. For example, Brazil up to 40% of coffee is consumed domestically, this is also the trend that the major coffee producing countries of the world are doing.
Other delegates also said that in order to develop Vietnam’s coffee industry to adapt to climate change and international integration, production businesses need to pay attention to solutions such as: promoting coffee replanting, support Credit investments and loans to growers’ replanting programs, linking the value chain of coffee to ensure output for products, converting varieties, and seasons to produce coffees that adapt to Climate Change…
According to a report by the Ministry of Agriculture and Rural Development, as of 2018, Vietnam’s coffee area reached 645,217 ha, yield 2.7 tons / ha, total output 1.6 million tons / year, of which Robusta coffee accounts for 96%. The country has 5 main coffee producing regions: Central Highlands, Southeast, South Central, North Central and Northern midland and mountainous provinces. The Central Highlands is the largest coffee growing region in the country, with 577,000 ha (accounting for 89%). Recently, the Central Highlands in particular and the coffee-producing regions of Vietnam are also facing difficulties due to climate change, low rainfall, water shortages affecting coffee production and cultivation.
