HANOI – The coffee sector in Viet Nam aims to improve the quality and competitiveness of its products in order to avoid risks arising from price fluctuations and low productivity.
Viet Nam is the second largest coffee producer (after Brazil) with presence in 70 countries and territories. The annual export turnover is over US$1 billion. However, this is still below potential.
The sector is still vulnerable to price fluctuations and suffers from low quality and productivity, experts said.
In order to limit such problems, the National Agricultural Extension Centre (NAEC) implemented the model of establishing sustainable coffee production along with certificates in the five Tay Nguyen (Central Highlands) provinces of Dak Lak, Dak Nong, Gia Lai, Kon Tum and Lam Dong.
The programme aims to improve the cultivation techniques and economic efficiency of farmers.
The results were positive, with 300 hectares of coffee being certified as having higher productivity and higher selling prices which benefited 610 farmer households.
Nguyen Thi Thoa, an NAEC expert, said that sustainable coffee cultivation helps farmers by reducing costs and improving output and quality.
Some 520,000 hectares are under coffee cultivation nationwide, with the Central Highlands provinces accounting for 90 per cent of the total area.
The coffee sector expects a good year in 2014 after the Government abolished the 5 per cent value added tax on several agricultural products including coffee, along with the increasing demand for the product in the world market.