Deputy Minister of Trade Nguyen Thanh Bien said that the ministry has decided that batches of coffee that do not meet TCVN 4193:2005 quality standards, will not be allowed to be exported.

"We should make sure that coffee farmers are aware of the necessary application of this quality control measure so that they will adhere to its standards," Bien said.

Bien suggested setting up a system of close cooperation between companies and coffee farmers, especially in the signing of contracts under which the former would be responsible for buying all coffee products from growers.

Van Thanh Huy, chairman of the Viet Nam Coffee and Cacao Association (VICOFA), said that most coffee farmers had been educated on methods to increase coffee production and quality in training seminars and given technical assistance.

"If the government is seriously going to implement quality management rules, farmers need to know how to meet those standards without incurring high financial risks."

Standard requirements

With exports to 71 countries and territories, Vietnam has become the world's largest robusta coffee producer and exporters making up 43% of the global market share. However, Vietnamese coffee sells at low prices overseas.

These prices are often much lower compared to those of coffee exported by other countries in Southeast Asia. The difference is usually between US$50 and $70, even $100 per tonne, experts said.

The industry faces uneven development because of problems with farming, processing and pricing, experts said.

Vietnam has set standards for exported coffee, starting with TCVN 4193:83 in 1983, and then TCVN 4193:86 in 1986, based on international standards, said association Vice Chairman Doan Trieu Nhan.

TTCVN 4193:93 was passed in 1993. using three criteria: humidity, the ratio of broken black beans and the mixture of the coffee.

In 2001, the association developed TCVN 4193:2001 to classify coffee based on its defects. Four years later, the association came out with TCVN 4193: 2005 to conform to the global standards and facilitate business activities, Nhan said.

However, domestic and foreign dealers have not adhered to this standard, citing inconvenience. It costs $40 to re-screen a tonne of coffee to eliminate defected beans; meanwhile, foreign partners agree to pay only $10.

Other experts said that coffee exporters in the world classify coffee into two categories: the poor quality coffee is processed into instant coffee for domestic consumption, and the superior coffee is for export.

Meanwhile, Vietnamese businesses prefer the simpler practice of selling mixed beans. This will adversely affect the image of Vietnamese coffee on the world market as well as lead to great economic loss for domestic exporters.

Source: Viet Nam News