The Ministry of Agriculture and Rural Development (MARD) is carrying out its master plan to develop the coffee processing system by 2020 in a bid to increase the added value of domestic coffee products, said a senior official.

Vo Thanh Do, Deputy Head of the ministry’s Agro- Forestry, Seafood Processing and Salt Industry Department, said that although Vietnam is the leading country in robusta coffee production and exports, the processing industry still has numerous restrictions limiting the added value in the coffee sector.

According to the master plan, the coffee sector targets an export capacity of 1 million tonnes of coffee beans annually through upgrading and modernising current production lines to improve product quality.

The ministry is also focused on improving the quality and food security of the existing roasted and ground coffee products consumed domestically while increasing the total yearly productivity to 50,000 tonnes (90 percent of the designed capacity) in 2020 from the current 26,000 tonnes (50 percent of the designed capacity).

Another priority is elevating instant coffee to become a high value-added product for exports and domestic consumption with total output of 55,000 tonnes in 2020 and 120,000 tonnes in 2030. Mixed coffee products like three-in-ones and two-in-ones are expected to reach over 200,000 tonnes by 2020 and 230,000 tonnes by 2030.

Over the next 15 years, processed coffee commodities for export and domestic consumption are targeted to generate 1 billion USD, accounting for 25 percent of the production value.

The ministry is especially encouraging instant coffee processing in the Central Highlands, Southeast and Mekong Delta regions as well as developing mixed instant coffee in the southern central coastal and northern mountainous areas along with the three above-mentioned regions.

Do said domestic market development is of special importance, particularly in northern localities, to increase the consumption rate to 25 percent by 2030 from the current rate below 10 percent.

Furthermore, trade promotion activities have been fostered to enhance coffee penetration in international markets with the focus on Northeast Asia, Eastern Europe and ASEAN nations.
The coffee sector aims to increase the rate of coffee beans process at industrial scale to 40 percent this year, 70 percent by 2020 and 80 percent by 2030.

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