Dak Lak Coffee: Raising its position from standard growing areas

Dak Lak's position as the "leader" in the Vietnamese coffee industry is undeniable. With an area of over 214,000 hectares and an output of over 564,000 tons in the 2023-2024 crop year, Dak Lak accounts for more than 30% of the area and is the main source of coffee in the country. The export turnover of the last crop year reached nearly 916 million USD, accounting for 17.9% of the country's coffee export turnover, showing the importance of coffee trees to the province's socio-economy .

Coffee raw material area certified by 4C-EUDR of Dak Lak 2-9 Import Export Company Limited.

In particular, in recent years, thanks to the proactive application of certification standards and regulations in production and processing, the quality of Dak Lak coffee has been significantly improved. The whole province has nearly 66,200 hectares of certified sustainable coffee (4C, Rainforest Alliance - RA, Fairtrade - FLO ...), accounting for about 31% of the total area. In particular, Dak Lak was granted the world 's first two 4C-EUDR certificates for the coffee industry that does not cause deforestation and forest degradation by the Global 4C Association, with a total area of 9,437 hectares ... Participation in these programs has brought clear benefits: helping farmers improve their farming knowledge, save input costs, protect the ecological environment and most importantly, create high-quality products with transparent origins.

However, behind the impressive figures lies a challenging reality. That is, coffee production is still fragmented and small-scale, with up to 85% of the area under the management of households, causing many difficulties in synchronously applying technical processes, quality control and traceability. Especially when large markets such as the European Union are increasingly tightening regulations on food safety and sustainable production, typically the Regulation on coffee production in compliance with the Deforestation and Forest Degradation Regulation (EUDR).

It is necessary to create standard raw material areas to enhance the position and ensure sustainable development for the coffee industry. Photo: Huu Hung

In addition, the application of certifications is facing some difficulties such as: high costs; participating farmers have not fully recognized the benefits and intangible values brought by certification programs; roasters around the world tend to prioritize buying certified raw coffee but do not pay premiums as before (if any, it is very low)...

According to Mr. Trinh Duc Minh, Chairman of Buon Ma Thuot Coffee Association, organizing production to meet technical standards, food safety, and environmental protection requires close cooperation between state management agencies, businesses, and coffee growers from planning growing areas, applying science and technology, certified cultivation and production processes, etc. to improve economic efficiency, protect the environment, and raise community awareness.

The world has been and is in the “third wave of coffee”, with the view that coffee quality is not only limited to each coffee bean but also extends to the entire process from selecting varieties, planting, harvesting, preliminary processing, processing, preservation, and how to enjoy coffee. This reality requires that the production of high-quality certified coffee must consider all of the above factors. Therefore, improving quality is not only about upgrading the quality of specific products but also investing in upgrading these factors to increase the added value of coffee.

Coffee area certified by FLO of Cong Bang Ea Tu Agricultural Service Cooperative.

Currently, some roasters in the world have directly purchased from Vietnamese exporters instead of buying through companies. Foreign coffee corporations and roasters tend to pay more attention to geographical indications and coffee with the Buon Ma Thuot Coffee brand. This is a good signal to encourage Vietnamese enterprises to develop a direction to improve the quality of exported coffee, and quickly build a coffee brand with the Buon Ma Thuot Geographical Indication.

To position the value of the coffee industry, the province has agreed on not increasing the area, only focusing on depth; at the same time, implementing a series of synchronous, strategic solutions to restructure the coffee industry in a green and sustainable direction. In particular, focusing on repositioning products by promoting the development of specialty coffee, exploiting market segments with high added value, instead of only focusing on exporting raw coffee beans. This is considered the key to diversifying products and increasing income for farmers.

At the same time, the province is also developing a digital map of orchard history, updating the annual database on replanting, varieties and production processes, and effectively implementing EUDR adaptation solutions. The application of information technology will help the management and supervision of sustainable coffee production become more effective and transparent. Along with that, it is mobilizing and supporting farmers to participate in cooperatives and cooperatives to overcome fragmented production, create large raw material areas, consistent in quality and capable of linking with processing and exporting enterprises.

Dak Lak also calls for large, experienced investors to invest in refined processing projects in the province. Encourage businesses to apply advanced quality management systems such as HAPCCP, ISO 22000 to create final products that meet international standards. On the other hand, promote and support the registration for expanded protection of the Buon Ma Thuot Coffee Geographical Indication. This is an invaluable asset, a guarantee for the quality and reputation of Dak Lak coffee in the international market.

The restructuring of the coffee industry in Dak Lak is not simply a change in farming techniques, but a revolution in production thinking and market approach. By creating standard raw material areas, linking production with deep processing and building strong brands, Dak Lak is firmly on the journey to raise its position, ensuring sustainable development for the billion-dollar industry, worthy of the title "coffee capital" of Vietnam.

Source: https://baodaklak.vn/tin-noi-bat/202508/ca-phe-dak-lak-nang-vi-the-tu-nhung-vung-trong-dat-chuan-2fd0c9c/