Lifting Vietnam's coffee deep processing rate to 40-45% key to sustainable grower benefits: exec

Raising the deep processing rate of coffee to 40-45% is essential to ensure sustainable benefits for Vietnamese growers, says Nguyen Tien Dung, deputy general director of Simexco Dak Lak Ltd, one of the country's leading coffee exporters.

Dung emphasized this point at the “Honoring Vietnamese Coffee and Tea in 2025” event, held in Ho Chi Minh City on Monday. The program focused on increasing benefits for farmers and supporting export-oriented businesses.

Dung noted that in addition to boosting deep processing, coffee growers also need to strengthen their market capacity.

"This includes understanding market trends, strategically managing inventory, and selling at favorable prices. The goal is to increase the industry’s total revenue to over $10 billion, driven by a mix of raw material exports and high-value processed products."

He also called for better storage strategies and supportive policies for farmers. “To achieve these goals, we need a stable market and significant investment in processing facilities. Many young Vietnamese, including overseas Vietnamese, are actively participating in this field. State-owned enterprises can focus on processing, while startups and younger businesses explore new markets. This synergy will drive strong growth in the coffee industry,” added Dung.

Joining the event online from his coffee farm in Ea Kao commune, Buon Ma Thuot town, Dak Lak province, farmer Pham Van Dong reported that coffee prices have risen sharply over the past two years, significantly benefiting farmers and the broader industry.

In the first five months of 2025, prices remained high, around VND130,000 ($5) per kilogram, encouraging farmers to reinvest in their farms, he noted.

Dong highlighted the success of organic production models, where enterprise partnerships have guaranteed product output and improved growers’ incomes.

Trinh Duc Minh, chairman of the Buon Ma Thuot Coffee Association, remarked that Vietnam’s coffee industry has integrated well into global markets in recent years, with impressive figures and positive outcomes. "Several international factors have contributed to rising coffee prices, including concerns over supply shortages, geopolitical instability, and currency fluctuations."

Vietnam’s annual coffee output currently stands at 1.7 million to 1.8 million tons. As a result, the country’s coffee export value is expected to surpass $6 billion this year.

"Data shows a steady increase in processed coffee, especially instant coffee, which now makes up about 10% of output,” Minh said. “With an average value of $6,000 per ton, deep processing is significantly boosting export revenue. Notably, Vietnam has started producing specialty coffee that sells for 1.5 to 2 times the global average price."

A significant development in recent years has been the increasingly professional approach by both farmers and enterprises. In the past, the market was often unstable, with volatile prices and risky trading contracts. That situation has improved considerably. However, the industry's biggest barrier to achieving added value remains the relatively low rate of deep processing.

Promoting branding and Vietnamese robusta

Given Vietnam’s status as the world’s largest exporter of robusta coffee, many experts believe it’s time for the country to more actively promote this variety. Rather than competing directly with other coffee-producing nations, Vietnam should focus on its own strengths, particularly robusta.

Gruber Alexander Lukas, director of Saigon Professional Roasting Service JSC (Alambé Vietnam), suggested that Vietnam position coffee as part of its cultural identity, representing dedication, regional uniqueness, and craftsmanship.

"Today’s international consumers are increasingly looking for coffees with bold, rich flavors that stand out from traditional offerings. This presents a unique opportunity for Vietnam to redefine its coffee image - celebrating robusta’s distinct taste, competitive pricing, and a natural, transparent production process," Lukas commented.