Dak Lak Province needs to increase export of instant coffee

Recent years have seen a high export turnover of raw coffee in the central highland province of Dak Lak, but businesses have not been able to increase export of ground or instant coffee. 

A coffee processing company in Dak Lak Province (Photo: SGGP)

Coffee export turnover in the province increased by 29.4 percent to reach US$650 million, accounting for 26.32 percent of the country’s export turnover in 2010-2011.

However, financial difficulties have led some companies to stop export of coffee and switch to production or purchase of raw coffee for resale to larger companies. Currently only 11 businesses are exporting raw coffee. As a result, export output fell by nearly 13 percent to only 311,000 tons during this crop season.

Meanwhile, export of ground and instant coffee accounts for only 7-8 percent of the province coffee output, said Vo Thanh, Director of the Department of Industry and Trade.

During this crop season, there are only two companies exporting ground and instant coffee with a total output of about 3,000 tons, yielding a turnover of $3.5 million.

Mr Thanh hoped that export of ground and instant coffee will improve as many processing plants are about to become operational. This will raise the province output in this processed coffee to 14-15 percent by next year.

Dak Lak authorities have also called for more investments in the coffee processing industry. A total of eight projects have so far been initiated at a total cost of VND1.23 trillion (US$58 million).

Dak Lak Province in the Central Highlands is the main coffee producing area in Vietnam, exporting coffee to 50 countries and territories across the world.

By Cong Hoan – Translated by Hai Mien

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