Farmers during a coffee harvest in the Central Highland province of Dak Lak. (Photo: VNA) With the current export prices standing at 2,955 USD per tonne,reflecting a 35.2% uptick from the previous year, Vietnamese coffee exportcompanies were said to have secured substantial orders in the first quarter of2024.
Following a 4.6% increase in coffee export volume to arecord-breaking 4.24 billion USD in 2023, industry observers said Vietnam'scoffee exports will likely scale new heights in 2024, with projections rangingfrom 4.6-5 billion USD. To achieve this ambitious target, the Vietnamese coffeeindustry must intensify efforts to improve the value of coffee through agreater emphasis on deep processing, product line repositioning, and alignmentwith market trends.
Deputy Minister of Agriculture and Rural Development (MARD) Phung DucTien underscored the need for the coffee sector to invest in deep processing toincrease the added value of Vietnamese coffee. This strategic move was seen ascrucial to realising the ambitious target of a 6 billion USD export value inthe coming years.
In light of shifting preferences in major import markets such asthe United States and the European Union with the two alone making up roughlyhalf of the world's coffee imports, Vietnamese coffee exporters must learn toadapt to the trend of processed coffee over raw Robusta. This necessitatedsubstantial investments in deep processing plants and the continuous adoptionof cutting-edge processing technologies.
Meanwhile, the Vietnam Pepper Association (VPSA) estimated a 10.5%decrease in production to 170,000 tonnes in 2024 compared to 2023. While afavourable outlook was still anticipated for black pepper exports this year dueto reduced production and low inventory levels worldwide, the sector must notoverlook the importance of deep processing in enhancing export value. Thecurrent proportion of processed black pepper exports stands at a mere 30%,indicating the need for a significant improvement.
Despite the projected increase in pepper prices, the cultivationof pepper has faced stiff competition in the Central Highlands and Southeastregions, primarily from other crops, notably durian. This shift highlighted theurgency for the industry to prioritise deep processing, not only to increaseexport value but also to provide farmers with a sense of security amidfluctuating prices and market challenges.
From the perspective of a leading exporter to major markets, PhanMinh Thong, Chairman of the Board of Directors of Phuc Sinh Corporation, aVietnamese pepper and coffee trader based in HCM City, highlighted theindispensable role of continued investment in deep processing for thesustainable development of Vietnam's coffee and black pepper sectors.
The seafood export sector also recognised the importance of deepprocessing to enhance competitiveness, said industry insiders.
Kim Thu, a shrimp market expert at the Association of SeafoodProcessing and Export (VASEP), stressed the need for the Vietnamese shrimpindustry to improve its competitive capacity by promoting the processing ofvalue-added products. Currently, value-added processed shrimp productscontribute a mere 40-45% to the total shrimp export value annually.
As the Southeast Asian country aims for higher export values andsets new records in trade volume for key agricultural products in 2024,industry experts and insiders have called for greater commitment to deepprocessing. They said this strategic approach will not only boost Vietnameseproducts' competitiveness but also foster the creation of a robust industrychain, creating exceptional products that command higher values on the globalmarket./.
VNA
