Innovation in Coffee Production Chain

To meet market demand in the context of integration, coffee production and processing enterprises in Dak Lak have developed their own strategies to upgrade products and innovate in the coffee value chain. Up to now, many businesses have accepted the risk of investing huge funds to invest in modern equipment to produce deeply processed products from coffee beans.

Many new products

Despite sticking with coffee production for a long time, the biggest concern of Mr. Nguyen Dinh Vien, Director of PM Coffee Co., Ltd (Buon Don district, Dak Lak province), is how to optimize the coffee production process to create new products from coffee materials grown in Buon Ma Thuot. From the existing ground of powdered coffee production, Mr. Nguyen Dinh Vien was determined to breathe new life into his products by producing "Coffee wine" for export.

He shared, “In 2016, I decided to research and find out how to produce pure coffee wine in the world. It is because deep processing of coffee beans after harvest still needs to be exploited and developed (instead of raw products) to affirm the brand of agricultural products that have been the strength of Dak Lak over the years. I spent 3 years researching and evaluating to come up with a coffee wine .”

This production process takes a lot of effort; the coffee berries must be carefully selected and fermented. Fresh berries are used to create flavors. The three most popular types of coffee, Arabica, Culi, and Robusta, are used to make wines. The reduction of caffeine contained in coffee beans is a core condition for the success of the product.

Mr. Vien said “Currently, coffee wine products have been well received and loved by domestic customers. However, the company is still completing the production process and has only met the domestic market, along with a whole set of products including coffee wine. In the near future, I will coordinate with a Japanese business to bring this wine to the market of cherry blossoms.

Together choosing to start a business from the coffee processing industry, Mr. Le Dinh Tu - Director of Minudo Farm-Care Co., Ltd (EaKao commune, Buon Ma Thuot city) has accepted the risk and invested in equipment to process coffee associated with the brand "Cascara tea". The process of researching this product was conducted for 3 years by him at the coffee farm he invested in and built.

Anh Tu expressed: "It is time to think creatively about coffee processing to adapt to the consumer market. Besides investing in modern technology, our company conducts quality inspection and preserves the inherent natural flavour. Enhancing the coffee processing value chain is something that I always keep in mind."

“Cascara” in Spanish means coffee beans that are peeled and processed into different drinks. Previously, Dak Lak had some businesses making tea, coffee and coffee wine. But in order to have a line of specialty teas from coffee pods, the processor must be knowledgeable about the smell, the roasting machine and the use of coffee grown in which land. Coffee by-products also determine the deliciousness of the finished product. Currently, "Cascara Tea" has been exported by Mr. Tu to big cities such as Hanoi, Ho Chi Minh City and Da Nang.

In the future, Mr. Le Dinh Tu intends to connect the farm to create a production and processing chain specializing in the production of high-class coffee, specialty coffee and agricultural tourism. In addition, Mr. Tu is completing the process and necessary equipment to launch the product "coffee syrup" and providing free training for farmers in processing specialty coffee.

Government accompanies businesses

According to the business, products that are deeply processed from coffee are very popular in the market because of their guaranteed quality, bearing the typical imprint of the region. However, most enterprises in Dak Lak are still operating independently. The work of coordinating with local authorities to create a chain of links, looking for potential markets to have output for products is still limited. Therefore, the risk of failure is quite high if the business does not have solid financial strength; if there is market fluctuation, it will be very difficult to manage.

Therefore, the Department of Industry and Trade of Dak Lak province is submitting to the Provincial People's Committee the development outline for approval, raising the level of local fruits and agricultural products to have a strong foothold in the country and be able to compete on the international market. The Department of Industry and Trade will focus on mobilizing more resources and is expected to invite more consultants and large enterprises in the province to implement the project methodically and effectively.

Mr. Luu Van Khoi - Director of Dak Lak Department of Industry and Trade emphasized: "Agricultural products that are deeply processed in the locality, especially coffee, in the near future may be directed to a potential market like China. The Import-Export Department (Ministry of Industry and Trade) promised to connect Dak Lak with Yunnan and Guangxi provinces (China) to invite Chinese traders to the Vietnamese market and learn about local agricultural products. Conversely, local businesses can also coordinate with authorities to find more partners and potential markets to export their products. In addition, Dak Lak enterprises can invest in technology to create added value and improve product quality at a high level to target markets such as the EU and the US. To do that, the government will accompany businesses, but they themselves have to work together to create resilience.”

Source: Vietnam Business Forum