Welcome

                             

Global Coffee Industry

​

 

 In January 2022, Brazil exported the highest volume of coffee worldwide. The volume stood at about 3.2 million 60-kilo sacks of coffee.

Coffee is the second largest traded commodity (after oil) in the world. All coffee is grown in the global south of the world and is mostly consumed in the global north. Based on 2015 figures, the Netherlands had the highest per capita consumption of coffee.

With regard to market fundamentals, total coffee production increased from 133.99 million bags in 2010/11 to approximately 171 million bags in 2018/19. The origin of coffee can be traced back to 1000 AD to Ethiopia. Arab traders are thought to have brought it to North Africa, from where it spread to Asia and Europe. Coffee's spectacular rise as a commercial commodity started with large-scale plantations in Latin America in the late 18th century. By the 19th century, Brazil commanded more than 70 percent share of the world market. However not as dominant, Brazil remains the leading coffee producing country in the world today.

New consumption patterns have emerged with the growing importance of specialty, fair trade, organic and even 'bird-friendly' coffees. Coffee bar chains have spread dramatically, although the relative coffee content of the final consumption 'experience' in these outlets is extremely low. Coffee bar chains sell an ambience and a social positioning more than just 'good' coffee. The global coffee chain has gone through a 'latte revolution', where consumers can choose from hundreds of combinations of coffee variety, origin, brewing and grinding methods, flavoring, packaging and ambience. Retail coffee prices continue to rise and roasters are capturing increased profit margin while coffee farmers receive prices below the cost of production.

Published by M. Ridder, May 10, 2022

​

​

 

​

​

​

 

​

 

 

 

 

 

 

 

 

HISTORY OF VIETNAMESE COFFEE PRODUCTION

​

Coffee arrived in Vietnam as a result of colonization. In this case, it was the French who introduced it. It is said that French missionaries brought the coffee plant to Vietnam in the 1850s. However, it wasn’t until 1888 when the first coffee farms were opened by French farmers in Dak lak.  After these initial efforts, Vietnamese coffee production grew rapidly through the 1900s. From 1920 to 1925, coffee continued to be planted across the Central Highlands. By 1945, coffee farms covered some 10,700ha, which grew to 20,000ha by 1975. Today, coffee farms cover more than 600,000ha of the country’s most fertile farmlands. This massive area, principally spread across Vietnam’s mountainous regions, yields some 30.7 million 60kg bags of green coffee every year. Currently, Robusta makes up about 95% of Vietnam’s coffee production, while arabica makes up the remaining 5%. The country is most well-known for the former, the majority of which is grown in the Central Highlands region. The Central Highlands is responsible for around 80% of all Vietnamese Robusta. Vietnamese coffee production has traditionally had a focus on quantity and mass production, as its climate and elevation make it perfect for the large-scale. e cultivation of the resilient Robusta plant. Today, Vietnamese Robusta is sold in masse to buyers who operate at scale, who often roast it and process it into instant coffee. 

 

Arabica is farmed by smallholders in a few regions. However, there has been a growing trend among some smaller farms in Vietnam to move away from this variety and begin planting higher quality varieties, such as Bourbon and Typica. Central Highlands As mentioned previously, the bulk of Vietnamese coffee production occurs in its Central Highlands, which are renowned for Robusta cultivation. Vietnamese coffee is mainly grown in the Central Highlands region, which includes five provinces: Dak Lak, Gia Lai, Dak Nong, Lam Dong, and Kontum.” a variety of factors make the Central Highlands ideal for Robusta production, including altitudes of between 300 m.a.s.l. and 500 m.a.s.l. The area has a warm tropical climate influenced by the South Asian monsoon, with distinct dry and rainy seasons. Robusta is cultivated in the highlands and plains, with hot weather, high humidity, and weak direct sunlight, and temperatures between 24°C and 26°C.” Arabica production regions.

 

While the Central Highlands dominates Vietnam’s Robusta production, arabica production is much more diffuse. Arabica is grown in pockets across both the north and the south, generally in areas where altitudes are higher and are more suited to the production of arabica coffee. The arabica coffee grown in Vietnam is in the regions of Da Lat, Dien Bien, Nghe An, Son La, and Quang Tri, which range in maximum altitude from 1000 to 1400 m.a.s.l.”Medhin adds: “Arabica is better suited to the mountainous areas at high altitudes with lower temperatures — between 20°C and 22°C — and an annual rainfall of 1,300mm to 1,900mm. Each region has its own distinctive and unique flavor. In particular, Da Lat is widely considered to be something of a “paradise” for Vietnamese arabica, thanks to its altitude and cool climate all year round. Historically, Vietnam’s farming and processing have been largely focused on meeting one target above all else: volume.  Most Vietnamese coffee is hand-picked and then wet processed, with little focus on natural, honey, or experimental processing. However, there is a growing emphasis on improving production techniques (with a specific focus on post-harvest) to drive up quality. Coffee is usually dried as quickly as possible, which creates quality issues. After that, typically, farmers fix their prices and sell to local buyers, before immediately re-investing the funds they receive into increasing their farm capacity. 

​

​