Vietnamese Coffee Beans
(part 2)
If we delved into coffee bean types, processing methods, and typical flavors in the previous part, we will now explore coffee trends in recent years and their impact on sustainable coffee processing in Vietnam.
Growing Regions
Coffee cultivation in Vietnam spans various regions, such as the Central Highlands, the Northern Highland, and the Central Coast. Each region's unique climate and soil contribute to the unique characteristics of Vietnamese coffee beans.
Vietnamese coffee is primarily grown in the Central Highlands region, encompassing five provinces: Dak Lak, Gia Lai, Dak Nong, Lam Dong, and Kontum. Many factors make the Central Highlands ideal for Robusta production. The area enjoys a warm tropical climate influenced by the South Asian monsoon, with distinct wet and dry seasons. Robusta thrives in highlands and plains featuring hot weather, high humidity, weak direct sunlight, and temperatures ranging from 24°C to 26°C.
Arabica coffee is cultivated in Da Lat, Dien Bien, Nghe An, Son La, and Quang Tri. These regions have high altitudes, ranging from 1000 to 1400 masl. Arabica prefers high-temperature mountainous regions with lower temperatures – from 20°C to 22°C – and annual rainfall from 1,300mm to 1,900mm. Due to its high altitude and cool climate, Da Lat is considered a "paradise" for Arabica.
Global Demand
Vietnamese coffee beans are exported worldwide, with countries like the United States, Germany, Japan, and Italy among the top importers. Vietnamese coffee's unique flavor profile and cultural significance have fueled its global popularity.
Presently, the coffee import preference of two principal markets, Europe and the US, is shifting from importing Robusta coffee beans to processed coffee. The US is increasingly favoring Arabica coffee and reducing Robusta imports.
According to the 2022 Food and Beverage Business Market Report, Vietnamese people between 23 and 30 years old are the most frequent buyers of drinks. Young consumers in Vietnam are also more open to foreign products, including Arabica beans. They welcome the growth of a more diverse coffee culture in Vietnam.
Another factor is the rising demand for instant coffee. Busy lifestyles and longer working hours are making the instant coffee market in Vietnam increasingly vibrant and competitive. Many major players in the Vietnamese coffee market have expanded into instant coffee.
Consumers are shifting from enjoying coffee at the store to brewing it at home to save costs, rather than reducing coffee consumption during challenging economic times. This trend became more popular after the implementation of measures to prevent and control the spread of Covid-19.
Economic Importance
Coffee is one of the most popular beverages worldwide, consumed by millions daily. The coffee industry's impact on the economy is significant. Coffee production plays a crucial role in Vietnam's economy, accounting for 3% of GDP and supporting millions of people, particularly in areas where coffee cultivation is the main income source. The industry also contributes to export revenues and international trade. As the world's second-largest coffee producer and exporter, our country's coffee products have reached over 80 countries and territories, accounting for 14.2% of the global coffee export market share. Coffee is the second most traded commodity in the world after oil.
The value of coffee beans includes the actors involved in production, processing, distribution, and consumption. Each agent adds value to coffee. Yet, the coffee industry faces challenges such as climate change, pest outbreaks, fluctuating prices, competition from other crops, and rising production costs while global coffee prices remain low, affecting coffee growers' livelihoods.
Sustainable Practice and Innovation Adaptation
According to the plan, localities will continue to carry out replanting, grafting, and renovation to maintain stable business productivity. Farmers must identify seedlings with stable productivity, ensure output quality, and be suitable for climatic conditions. Agriculture experts will actively support as the scale and area of coffee production undergo review. The focus is on promoting commodity-oriented coffee production, organizing production links, improving processing technology, aiming for deep processing to increase value, and calling for investment in processing technology to promote coffee industry development. Modern irrigation and fertilization processes will be applied, ensuring consumer safety and meeting the requirements of demanding markets. Furthermore, efforts will be made to promote Vietnamese coffee brands worldwide.
Vietnamese coffee producers and entrepreneurs continuously innovate, introducing new processing methods, coffee varieties, and products to meet evolving consumer preferences and market trends. Nestle Company, in collaboration with the Ministry of Agriculture and Rural Development, has researched and applied science and technology to develop high-yielding coffee varieties resistant to drought and pests. Experts guide people in applying technology to the process of cultivating and caring for coffee trees. Thanks to these efforts, coffee output has increased from 2-3 tons/hectare to 5-7 tons/hectare. The quality of people's lives and coffee beans has improved annually. Additionally, coffee roasters focus on investing in the most advanced and modern equipment to produce quality coffee batches, honouring the farmers' efforts.
Through this, we see the demand for Vietnamese coffee worldwide, the influence in the country, and the efforts to maintain and develop the Vietnamese coffee industry. Hopefully, the coffee development plan will help the industry face long-term challenges and continue to deliver and improve experiences for everyone.
