Deal expected to revive Vietnam's coffee industry

A strategic agreement to develop the Buon Ma Thuot coffee brand is expected to revive the country’s coffee industry, which needs to replace thousands of old, unproductive trees on farms in the Central Highlands province of Dak Lak.
Deal expected to revive Vietnam's coffee industry ảnh 1Illustrative image (Source: VNA)
Dak Lak (VNA) - A strategic agreement to develop the BuonMa Thuot coffee brand is expected to revive the country’s coffee industry,which needs to replace thousands of old, unproductive trees on farms in theCentral Highlands province of Dak Lak.

The agreement betweenBinh Dien Fertilizer Joint-Stock Company and Vinacafé Bien Hoa Joint-StockCompany, a member of the Masan Group Corp, was signed in the provincein the run-up to the 6th Coffee Festival that will kick off in Buon Ma Thuot city this weekend.

It is expected to helplocal authorities create a high-quality, productive coffee-growing area in theprovince’s Ea Tu commune.

Under the programme,cutting-edge technologies will be used in pilot production models, while smallfarming households will be consolidated into a centralised farming area toimprove coffee productivity in six villages and six hamlets in Ea Tu commune.

Huynh Quoc Thich, deputydirector of the province’s Department of Agriculture and Rural Development,said that coffee trees had been cultivated in Dak Lak province for the last 100years. 

Most of the trees aremore than 20 years old and produce low yields. The average life span for coffeetrees is between 20 and 30 years.

Between 140,000ha and160,000ha of trees need to be replaced in the next five to 10 years, a bigchallenge for the industry, Thich said.

The industry is alsofacing other problems, including small-scale production, poor quality control,and outdated processing technologies.

Ten years ago, coffeebrought a prosperous life to millions of farmers in the province, but in recentyears the productivity and quality of coffee beans have declined.

Y Dran Bya, 51, of KoTam hamlet in Ea Tu commune, who owns 0.9ha of coffee trees, said that most of his coffee trees were planted in 1972.

The yields have droppedto only 1.3-1.5 tonnes a year, compared to five to seven tonnes a year a decadeago, he said.

Coffee trees more than20 years old account for 23 percent of the area, and trees 15-20 years old fornearly 35 percent, according to the Department of Agriculture and RuralDevelopment.

More than 92 percent ofthe coffee trees have not adapted well to disease or to climate changes.

In addition, intensivefarming and improper use of fertilisers as well as pesticides have seriouslyaffected soil quality in the province. Many farmers often water treesexcessively, washing away nutrients needed for the plants.

The two companies thatsigned the agreement said they planned to work with the province’s Departmentof Agriculture and Rural Development and Agriculture Extension Centre.

The two firms have beencooperating with the Central Highlands’ Agro-ForestryScientific and Technical Institute to create linkages amongfarmers, scientists, businesses and the state in an aim to improve the Buon MaThuot coffee brand.

Pham Quang Vu, chairman of the board of directors of Vinacafé BHJSC, said, “This programme will improve the value of Buon Ma Thuot coffeebeans, known as the “pearl of Ban Me”.

The deputy generaldirector of Binh Dien Fertiliser JSC, Vo Van Phu, said the companies werecommitted to placing “farmer benefits” as their top priority.

“We’re willing to workwith farmers on the challenging path ahead,” he added.

Over the past 10 years,the country has exported an annual 1.2-1.5 million tonnes of coffee.

Vietnam ranks second inthe world for coffee exports, following Brazil.

The Vinacafé Bien HoaJoint-Stock Company manufactures and distributes a range of beverage products,including instant coffee, instant cereal and bottled beverages.

The signing ceremony waspart of a press conference to announce the 6th Coffee Festival in Buon Ma Thuot city in the province this weekend.

The biennial festival,with the theme “Quintessence Convergence – Identity Promotion – Connecting forDevelopment”, hopes to attract record attendance and showcase the area’seconomic potential.

This year, the eventwill host more activities, including a gong festival and conference oninvestment promotion for the Central Highlands region.-VNA
VNA

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