High-quality coffee project gets fresh investment

Ho Chi Minh City - The Ministry of Agriculture and Rural Development has approved a project to develop high-quality coffee trees with a total investment of VND170 billion (US$7.49 million), according to the Government news website.

The project is aimed at boosting coffee production and consumption, and building large-scale material supply sources.

In addition, it will help build high-quality and competitive coffee brands for Vietnam and increase incomes of farmers by raising prices of coffee products by 5% in 2020 and 7% in 2030 compared to the 2013-2014 season, equivalent to other countries.

At least ten enterprises will be supported to improve processing technology to enhance product quality and reduce post-harvest losses while five to 10 others can build high-quality coffee production models. These trial models are expected to bring annual revenue of VND2 trillion with a minimum of VND100 billion each.

The material cultivation zone will include a drying system, a warehouse and a processing facility with a capacity of 2.7 tons of Robusta coffee and two tons of Arabica coffee per hectare.

At least 10 companies are expected to invest in high-quality coffee production, processing and trading, ensuring higher added value for the sector in the 2020-2030 period.

In addition, half of Vietnam’s leading coffee firms can build their brand names.

The investment will consist of VND110 billion sourced from the State budget and VND60 billion from enterprises, farmers and lender banks. The project will be implemented between 2018 and 2023 with a vision towards 2030.