Towards sustainable coffee production

Faced with constant fluctuations in market prices, farmers and businesses in Lam Dong province need to focus on replanting coffee varieties and researching to improve quality, and moving into deep processing; at the same time, comply with new regulations such as the European Union Deforestation Regulation (EUDR).

Coffee prices are currently down about 30% from their peak.

Coffee prices fall sharply

After a long period of continuous sharp price increases, at one point the price of coffee beans was approaching 140,000 VND/kg, in the past 2 months, the price of coffee suddenly plummeted quite rapidly to just over 95,000 VND/kg. The high price of coffee in recent times has prompted many farmers to convert and restructure their crops, causing the coffee acreage in many localities in the province to increase sharply.

Currently, the highest coffee purchase price in key regions of the Central Highlands such as Dak Lak , Lam Dong, Gia Lai, is recorded at 92,000 - 94,500 VND/kg, equivalent to a decrease of about 30% compared to the highest time recorded in the market.

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The current decline in coffee prices is due to the fact that the global coffee market continues to be dominated by increasing supply pressure and concerns about trade tensions. Supply from major producers such as Brazil and Vietnam is forecast to be more abundant, while concerns about the possibility of the US imposing high tariffs on imports further dampen market sentiment.

Mr. Doan Manh Trinh - Director of Tam Trinh Coffee Import Export Company Limited

However, for Vietnamese coffee, many businesses believe that the current export tax rate to the US is still kept at 0%, with no official change. However, export difficulties still exist as demand in major markets such as the US and Europe is slowing down, along with fierce competition from Brazil, Colombia and other countries.

Domestically, coffee prices have fallen sharply, largely due to the impact of the sharp decline in the two world markets. Therefore, coffee exporting enterprises and cooperatives are facing great pressure, forced to recalculate production costs and expand to new markets to reduce dependence.

However, the reality is that currently, many coffee suppliers and roasters in Lam Dong province have signed supply contracts with partners from the end of 2024 and the beginning of 2025. Therefore, in the context of the current sharp decline in coffee prices, it will not immediately affect businesses and people but will affect the upcoming coffee crop.

To improve the quality of coffee products, farmers need to comply with the harvesting of ripe fruit at a rate of over 90%.

Continuously improve coffee quality

According to preliminary statistics, Lam Dong province currently has over 316,000 hectares of coffee cultivation with an estimated total output of 928,000 tons. Of which, the coffee area is mainly concentrated in Lam Dong province (old) with an area of 176,000 hectares, output of over 572,000 tons; Dak Nong province (old) with about 140,000 hectares, output estimated at over 356,000 tons.

People and businesses in Lam Dong province are constantly improving the productivity and quality of coffee from production, harvesting to processing.

According to Mr. Doan Manh Trinh - Director of Tam Trinh Coffee Import Export Company Limited, currently, many localities in the province have not yet formed many large-scale, concentrated agricultural production areas (including coffee trees). In many places, products produced according to certified standards are still limited, the quality is not consistent, there is no focus on building and protecting brands and trademarks, and the competitiveness of products is still low. Along with that, the synchronous implementation of scientific and technical advances to improve the productivity and quality of coffee from production, harvesting to processing and exporting still faces many difficulties.

Therefore, the most important thing that needs to be implemented by authorities, businesses and farmers in the area is to focus on replanting, improving quality, and re-planning coffee growing areas so that this key agricultural product can develop sustainably in the near future.

Coffee businesses strengthen brand building and promotion for Lam Dong province coffee products

Sharing the same opinion, Mr. Nguyen Song Vu - Director of Song Vu Organic Agricultural Service Cooperative in Xuan Truong Commune - Da Lat also said that, in order to sustainably produce coffee trees in the current period, farmers need to focus on replanting, improving productivity and quality on existing coffee areas; in which, organic farming has been and is an inevitable trend today.

Representative of Min Mountain Coffee brand owner in Xuan Truong commune - Da Lat, Ms. Nguyen Thi Hoang Yen also shared that harvesting also plays a very important role in improving the quality of coffee products. Accordingly, farmers need to comply with the harvesting of ripe fruit reaching a rate of over 90%, or perform pruning, picking coffee fruit as it ripens, not harvesting both ripe and unripe fruit at the same time.

Products made from coffee harvested at the right ripeness will produce quality products with delicious flavors. The sour and astringent components in the product are reduced to the lowest level. Along with that, the producer benefits from a higher weight of fresh coffee, and a better price than coffee that is not ripe enough.

On the other hand, to improve coffee productivity and quality, continue to maintain and enhance the coffee brand of Lam Dong province, the Department of Agriculture and Environment of Lam Dong province has also issued many documents requesting agencies, units, specialized departments and People's Committees of communes and wards to strengthen guidance for coffee producers to follow the recommendations; at the same time, strictly comply with the European Union's Anti-Deforestation Regulations (EUDR).

Source: https://baolamdong.vn/huong-den-san-xuat-ca-phe-ben-vung-382273.html