Vietnamese coffee on the rise
- Written by The Bulletin
· Vietnam coffee makes its mark with Trung Nguyen Legend
COFFEE'S GLOBAL CRISIS
HANOI, VIETNAM - Media OutReach Newswire - 14 May 2024 - A study published by HSBC (1) in October 2023 forecast that by 2050, the number of regions suitable for coffee cultivation could decrease by up to 50 per cent due to climate change.
As scientists search for solutions for preserving coffee plants, farmers face another crisis: the deterioration of seed sources, soil quality, and a significant drop in coffee prices.
Coffee was once a fast-growing commodity sector, with global production fluctuating annually due to weather conditions, climate change and other factors, resulting in an unstable market and volatile prices. This price volatility has significant consequences for those dependent on coffee for their livelihood, making it difficult for growers to forecast their income for the upcoming season and plan their production needs.
VIETNAMESE COFFEE: IN THE SPOTLIGHT
Vietnam is currently the world's second largest coffee exporter and biggest exporter of Robusta coffee. According to the General Department of Vietnam Customs, the average export price of coffee in 2023 was $2,614 per ton, marking a 14.5 per cent increase from 2022.
According to data from the Vietnam Coffee Association, in the first quarter of 2024, Vietnam exported 579,449 tons of coffee, generating about $1.9 billion. Production rose by 4.9 per cent and its value surged by 57.3 per cent compared to the same period last year, driven by high export prices.
The coffee consumption preferences of EU citizens are changing, and the bilateral free trade agreement EVFTA is boosting the value of the Vietnamese coffee industry and facilitating its market share expansion in the EU. Additionally, other markets, including Japan, are increasing their imports of Vietnamese coffee.
"From the analysis above, the Vietnamese coffee industry benefits from the global shift in coffee consumption preferences towards Robusta coffee," said the Ministry of Industry and Trade of Vietnam.
TRUNG NGUYEN COFFEE EXPANSION
When making a documentary about Vietnamese coffee, "The Tao of Coffee," Warner Bros. Discovery noted: "Vietnam provides more than half of the global supply of Robusta coffee, primarily grown in Buon Ma Thuot, Dak Lak province, which accounts for over 30 per cent of the country's total production. Since the 1980s, the Vietnamese government has implemented a series of coffee production programs to help kick-start the economy."
Trung Nguyen Legend is a leading coffee brand in Vietnam, dedicated to promoting Vietnamese coffee and its culture to the world.
Featured in this Discovery-produced film, Trung Nguyen Legend was hailed by the world-renowned film studio as "a unique company leading the Vietnamese caffeine revolution, turning coffee from a simple beverage into a way of life". It also offers a close look inside the production facility equipped with the most advanced Western technologies combined with Eastern traditional methods of processing.
Vietnam has developed a comprehensive strategy for policy and communication aiming to build a strong Vietnamese coffee culture. This foundation is expected to boost Vietnam's coffee exports to reach billions of USD per year, contributing to the aggregate economy and enhancing the country's position globally.
In September 2023, Trung Nguyen Legend launched the Trung Nguyen Legend Coffee World model in the billion-dollar Chinese market. The company also officially opened its first franchised coffee space in Little Saigon, Westminster, California, USA.
Richly imbued with Vietnamese coffee culture, the Trung Nguyen Legend Coffee World locations in China and the USA have been warmly welcomed by customers for their distinctiveness and creativity, drawing the attention of industry experts, investment partners, and customers alike.
Click here to watch "The Tao of Coffee".
1. HSBC: https://www.expat.hsbc.com/wealth/insights/esg/why-esg-matters/how-sustainable-is-your-morning-coffee/
Hashtag: #TrungNguyenLegend
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