Vietnam is the second largest coffee exporter of the world (after Brazil); however, its exports are mainly raw coffee. That means the added value and benefits of cultivation that Vietnamese farmers and the economy receive remain incommensurate with the status of Vietnamese coffee trees. Hence focusing on the investment in processing technologies, as well as building up brandnames for Vietnamese coffee, is an essential solution for the long-term development of this key industrial crop.
According to Mr Nguyen Hoa Chinh - Director of Dak Ha Coffee Import-Export Joint Stock Company: building and developing brands is currently facing two fundamental problems as follows: first, on indications agents: like other agricultural products, each area has its own specialties under its natural conditions and production and processing techniques. Coffee is no exception; the state must design specific mechanisms in establishing geographical indications for each coffee region, on the basis of scientific evidence on the area’s natural conditions as well as the products’ quality. Local governments or professional associations’ roles are to manage geographical indications and register brands as well as license businesses to brands. Only in this way could regional brands not be stolen or be bought away. The construction and development of strong brands to gain market share and ensure output for products is a long term investment, the State, therefore, should have suitable mechanisms and solutions in terms of capital, technology and trade promotion.
Another difficulty is the Vietnamese habits, tastes and culture for coffee. Coffee previously served mainly for export, while domestic consumption and roasting were prohibited creating scarcity that in turn led to low quality coffee mixed with corn, beans, etc. This gradually shaped coffee drinking habit of Vietnamese, a lack of distinguish between pure coffee, organic coffee and chemical coffee. According to international regulations (UTZ), the ratio in coffee must range from 2-3 percent due to bean mixing ratio (95 percent pure), colours after mixing are brown of cockroach wings and amber after added ice, light fragrance, no residue, taste of soothing bitter and have a sweet aftertaste. Meanwhile in our official provisions, 1 percent of coffee only means 40-50 percent pure coffee. On the market, the most common is the 0.3-0.4 percent coffee that is only 10-20 percent of international standards (UTZ) and 30-40 percent of domestic standards of pure coffee. Changing the coffee consumption habits, preference and culture of the Vietnamese, as well as the issuance of investment mechanism for the building and management of brands as well as standards for coffee products could enhance domestic consumption from the current 10-15 percent to 20-25 percent, help improve the value of coffee and protect consumers’ health. This way, the value of coffee trees could be properly exploited and become Vietnam's export strengths in the international market.
DAK HA COFFEE IMPORT-EXPORT JOINT STOCK COMPANY
Established in 2007, from the very beginning, Dak Ha Coffee Company aimed to build a brand for export and domestic consumption. So far, the brand “Dak Ha Coffee” with “the bitter taste of North Highlands” has won many national awards for quality, food safety, public health and brandname. It is the first product in Vietnam to be labelled by UTZ Certified on global quality and brand.
Minh Xuan