The cultivation areaswill be located in several provinces in the Central Highlands and thesouth east and north central regions only to ensure higher productivityand better management of coffee quality, according to the MARD’sCultivation Department.
Department representatives said in the agency’s report that theministry’s limitation of cultivation areas was aimed to ensure stablesupplies of coffee products in both domestic and overseas markets.
Over the past few years, oversupply has led to a drop in the world market price. The growth of the industry in Vietnam has been spectacular in the lastdecade. The area under coffee has increased from a mere 19,000 ha in1975 to 454,000 ha in 2005.
In 2007 alone, the area soared to 506,000 ha, up by 10,000 ha as compared with the figure in 2006.
Last year, the industry produced about 960,000 tonnes, up 6,300 tonnesas compared with 2008. This year, it expects to generate between 1.08and 1.26 million tonnes.
In 2009, the country exported 1.18 million tonnes of coffee, up 11.71percent. However, it earned just 1.73 billion USD, down 18.03 percent.
Industry insiders said there were decreases in prices of Vietnamesecoffee products due to oversupply and low quality. In particular, theprice of a ton of coffee was down by between 400 USD and 500 USD in2009.
To ensure productivity as well as quality, the ministry also plans totake other measures, including requiring localities to use newhigh-yield and good quality seeds for their coffee plantations, whileconsolidating their local coffee seed multiplication establishments toensure quality supplies.
About 25 percent of the country’s coffee cultivation area are in needof reform or are being replanted due to old and stunted trees.
The ministry will also ask coffee processing and trading companies toclassify products and examine quality immediately according to a set ofnational standards coded TCVN 4193:2005.
In the near future, coffee enterprises would have to apply the world’sCommon Code for the Coffee Community (4C) to ensure a sustainabledevelopment for the local industry.
Provincial People’s Committees will be responsible for adjusting coffeedevelopment activities in their localities according to approved plans,and strengthening management to prevent unplanned developmentpractices.
The ministry has asked them to provide guidelines for farmers to helpthem apply intensive farming methods, and harvest coffee in line withtechnical requirements.
The Vietnam Coffee Corporation will invest more in processingtechnology, and increase trade promotions to advertise Vietnamesecoffee products.
The Cultivation Department said it had already established a process toimplement Good Agricultural Practices (GAP) for production ofVietnamese coffee.
It has also proposed that the ministry issue plans soon to useinternational standards for coffee bean exports, and co-operate withinternational organisations to train producers and professionalinspectors, with the aim of improving the quality of exports./.