No more coffee processing factories to be built in the period 2020-2030

July 29, 2015 14:20

From now until 2020 and 2030, the Ministry of Agriculture and Rural Development plans not to build more coffee processing factories but only invest in technology and equipment innovation to increase labor productivity and improve product quality.

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According to Mr. Vo Thanh Do - Deputy Director of the Department of Agricultural, Forestry, Fishery and Salt Processing (Ministry of Agriculture and Rural Development), there are currently 239 industrial-scale coffee processing enterprises nationwide.

These facilities process over 1.24 million tons of products each year, including green coffee, ground coffee, and instant coffee, accounting for over 96% of the country's total coffee output.

According to Mr. Vo Thanh Do, Vietnam is currently the world's leading country in the production and export of robusta coffee, and the second in the world in the production and export of green coffee beans.

However, the coffee processing industry has long focused mainly on processing coffee beans for export, bringing low added value, while deep processing into powdered coffee, instant coffee, and blended instant coffee (“3 in 1,” “2 in 1” coffee, etc.) only accounts for 4.1-6% of total coffee output.

Specifically, currently, the country has 160 facilities processing ground coffee (roasted coffee), with an annual capacity of 26,095 tons, and 19 factories processing pure instant coffee and blended instant coffee, with a capacity of 75,280 tons of products/year.

Meanwhile, deeply processed coffee products, although having low output, bring in added value many times higher than exporting green coffee.

From now until 2020 and 2030, the Ministry of Agriculture and Rural Development plans not to build more coffee processing factories but only invest in technology and equipment innovation to increase labor productivity and improve product quality.

At the same time, focus on investing in research to change the product structure towards increasing deeply processed, high-quality coffee products; strengthen the connection between growers and coffee processing enterprises to create sustainable development.

Specifically, by 2020, the proportion of coffee consumed (deeply processed coffee: roasted and ground coffee, instant coffee) will reach 25% or more of the total output of green coffee beans; of which, the output of roasted and ground coffee will reach 50,000 tons of products/year, and instant coffee of all kinds will reach 255,000 tons/year; of which, pure instant coffee will account for over 20%.

By 2030, this industry aims to increase roasted coffee output to over 50,000 tons/year, and instant coffee output to over 350,000 tons/year.

Roasted coffee is mainly for the domestic market, instant coffee is for export and partly for domestic consumption./.

According to Vietnam+

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No more coffee processing factories to be built in the period 2020-2030
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