Dak Lak moves to foster coffee processing industry
The Central Highlands province of Dak Lak plans to raise the rate of processed coffee products such as powder coffee and instant coffee to 15 percent of the local coffee bean output by 2020.
Coffee beans are dried in the Central Highlands (Photo: VNA)
Dak Lak (VNA) – The Central Highlands province ofDak Lak plans to raise the rate of processed coffee products such as powdercoffee and instant coffee to 15 percent of the local coffee bean output by2020.
It expects to increase the rate to 20-30 percentby 2030 to improve the added value of products from coffee – the biggestforeign currency earner in Dak Lak, according to Chairman of the provincialPeople’s Committee Pham Ngoc Nghi.
To that end, the province has moved to create afavourable investment climate for both domestic and foreign businesses,particularly those specialising in roasting and grinding, to attract investmentin processing factories.
The provincial authorities plan to assist coffeeprocessors in applying advanced post-harvest and processing techniques, as wellas modern corporate governance process. The province also offers support toorganisations, enterprises and cooperatives to build brands, trademarks orgeographical indications for processed coffee products, Nghi said.
Dak Lak has nearly 204,000 hectares of coffeeand produces at least 450,000 tonnes of coffee beans each year – the biggestarea and output of coffee in Vietnam. However, there are only 145 processing facilitiesin the province with combined design capacity of over 32,100 tonnes, accountingfor 5.55 percent of the local coffee bean output.
In 2016, Dak Lak produced only 28,000 tonnes of processedcoffee products, including 23,000 tonnes of powder coffee and 5,000 tonnes ofinstant coffee. It exported 4,520 tonnes of instant coffee, making up 2.3percent of total coffee bean export volume, bringing home more than 26.8million USD which accounted for 7.5 percent of the province’s coffee exportrevenue. The remaining processed coffee was sold in the domestic market.
Nghi acknowledged that most locally-based processingcompanies are private firms whose market access and product advertisingcapacity remains modest. Meanwhile, local policies are not attractive enough topersuade Vietnamese and foreign enterprises to invest in coffee processingplants.-VNA
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Coffee beans are dried in the Central Highlands (Photo: VNA) 
