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VietNamNet Bridge – In an effort to regain coffee materials from foreign
businessmen, Vietnamese enterprises have to spend money to develop the growing
areas.
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However, the information does not make domestic enterprises happy. Foreign invested enterprises have been dominating the domestic coffee material market. They have been offering high prices to collect materials directly from farmers and have been investing money to develop material growing areas, which allows them to control the material market.
Dakman, for example, has been controlling thousands of hectares of coffee. Meanwhile, Nestle has also been implementing similar projects in Dak Lak and Lam Dong provinces, the coffee metropolises in Vietnam.
Do Ha Nam, Chair of Intimex, an import-export company in HCM City, said that a half of Vietnamese total coffee productivity has fallen into the hands of foreign invested enterprises. This shows the strong development and the high ability to swallow Vietnamese material areas by foreign invested enterprises.
In Dak Lak province, the enterprises collected 200,000 tons of coffee in the 2010-2011 crop, which is equal to 50 percent of the total coffee output of the whole province.
It seems that Vietnamese businesses think that it is impossible to hinder the foreign enterprises’ business. Therefore, in order to struggle for the market share, domestic enterprises have no other choice than improving their financial capability to store materials and develop material growing areas.
Experts also said that it is necessary to control the material supply sources with a plan on sustainable development by programming material growing areas and take actions to ensure stable output.
The biggest problem now for farmers and domestic enterprises is that the proportion of old aged coffee plants is high, which accounts for nearly 30 percent of the total existing plants. Meanwhile, farmers are not interested in the re-cultivation mode, because it will take them five years at least. Therefore, it is necessary to give support to farmers in order to control the production and trade of coffee varieties in localities.
The project on producing coffee and cocoa varieties for the 2011-2015 period developed by the Central Highlands Institute of Agroforestry Techniques, capitalized at 66.2 billion dollars has got the approval from the Ministry of Agriculture and Rural Development.
Under the project, for each year, the project will provide 20 tons of Robusta coffee seeds, 3 tons of high quality Arabica seeds, and provide 2 million buds that serve the needs for re-cultivation and growing 20,000-22,000 hectares of coffee plants. The project is believed to give active support to build up and develop coffee material areas.
Meanwhile, Thai Hoa Group, the only Vietnamese company well familiar to the collectors at LIFFE in London, has successfully developed the model of sustainable coffee development in Hoa Binh province when implementing the project on growing 850 hectares of coffee and developing an ecotourism area. The model is believed to help bring big benefits to local farmers, while ensuring a sustainable ecosystem for the next generations.
Ngo Thanh Hung, Director of the Hoa Binh branch of Thai Hoa Coffee Company, said that in order to replicate the model, it is necessary to make farmers understand the way of development and the big economic value the coffee plants can bring. Besides, it is necessary to grow other plants and breed animals in the coffee gardens in order to diversify and balance the ecosystem
In 2011, Thai Hoa kicked off the first cooperation agreement under the mode of PPP (private public partnership) in the coffee industry in Vietnam, which aims to develop new-style coffee cooperatives and organize distribution networks with the participations of four provices of Lam Dong, Quang Tri, Son La and Dien Bien.
According to Le Quang Dao, Deputy General Director of Thai Hoa Company Lam Dong branch, Thai Hoa has invested 400 billion dong in the project over the last five years.
Source: TBKTVN
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