Vietnam Coffee Industry
Trang Ho
07/06/2013
VIETNAM COFFEE INDUSTRY
I/ Introduction
Coffee was first introduced in Vietnam by the French, who colonized the country in the second half of the 19th century. During the 1890s the French established coffee plantations in the Annam region surrounded by mountains at an elevation of 3600 feet. The varying climate and mountain slopes are ideal for growing different types of coffee. After three decades of rapid expansion and development, the Vietnamese coffee industry has helped Vietnam become the world’s second largest producer and exporter of coffee after Brazil, estimated 1.6 million people in the Central highlands earn their living from the bean. Vietnam now accounts for about 16% of world coffee output; its coffee production has increased sixteen fold in the past three decades, coffee growing area now totals at 506,000 hectares, from the modest figure of 30,000 hectares by the mid-1980s. The magnitude of total output stands in sharp contrast with the dominant unit of production. Small family-run farms whose sizes average 1.2 hectare, and which have been established only within the last two decades, produce about 85 percent of national output.
Coffee is one of Viet Nam’s most important agricultural export commodities. The coffee sector provided 600,000 permanent jobs and around 1million part-time jobs in 2001, thus contributing to poverty reduction in rural areas. The Vietnamese coffee sector is very export-oriented, with exports accounting for about 95% of the production. The coffee production –which consists mainly of the Robusta variety-- has grown very rapidly since the late 1980s, and Viet Nam has over a short period of time established itself as a main player among the world exporters. Viet Nam is today the world’s second largest exporter in volume terms (after Brazil, with a world market share of some 15%), and the third largest exporter in value terms (after Brazil and Columbia).
Viet Nam is highly competitive as a coffee
07/06/2013
VIETNAM COFFEE INDUSTRY
I/ Introduction
Coffee was first introduced in Vietnam by the French, who colonized the country in the second half of the 19th century. During the 1890s the French established coffee plantations in the Annam region surrounded by mountains at an elevation of 3600 feet. The varying climate and mountain slopes are ideal for growing different types of coffee. After three decades of rapid expansion and development, the Vietnamese coffee industry has helped Vietnam become the world’s second largest producer and exporter of coffee after Brazil, estimated 1.6 million people in the Central highlands earn their living from the bean. Vietnam now accounts for about 16% of world coffee output; its coffee production has increased sixteen fold in the past three decades, coffee growing area now totals at 506,000 hectares, from the modest figure of 30,000 hectares by the mid-1980s. The magnitude of total output stands in sharp contrast with the dominant unit of production. Small family-run farms whose sizes average 1.2 hectare, and which have been established only within the last two decades, produce about 85 percent of national output.
Coffee is one of Viet Nam’s most important agricultural export commodities. The coffee sector provided 600,000 permanent jobs and around 1million part-time jobs in 2001, thus contributing to poverty reduction in rural areas. The Vietnamese coffee sector is very export-oriented, with exports accounting for about 95% of the production. The coffee production –which consists mainly of the Robusta variety-- has grown very rapidly since the late 1980s, and Viet Nam has over a short period of time established itself as a main player among the world exporters. Viet Nam is today the world’s second largest exporter in volume terms (after Brazil, with a world market share of some 15%), and the third largest exporter in value terms (after Brazil and Columbia).
Viet Nam is highly competitive as a coffee
Cited: The World Bank, “Coffee Markets: New Paradigms in Global Supply and Demand,” Agriculture and Rural Development Discussion Paper 3, 2004. Diers, A.; Langowski, H. C.; Pannkoke, K. & Hop, R. (1999): Produkt- Ökobilanz vakuumverpackter Röstkaffee, Bayreuth: Eco-Informa Press. Salomone, R. (2003): Life cycle assessment applied to coffee production: investigating environmental impacts to aid decision making for improvements at company level, Food, Agriculture & Environment, Vol. 1(2), 295-300. The Department for Crop Production in the Ministry for Agriculture and Rural Development, “Program Proposal for Coffee Sector Development towards Sustainable Coffee Production and Trade in Vietnam until 2020” “VIETNAM TRADE PROMOTION AGENCY EXPORT PROMOTION CENTRE”, aseankorea.com, 2007 Doan Trieu Nhan, “Orientations of Vietnam Coffee Industry”, May 17-19, 2001 “Export potential assessment in Viet Nam”, 2010