A paradise in the past

In 1993-94, the Central Highland region was considered the heart of Vietnam’s coffee industry as at the time Brazil, the world’s leading coffee grower and exporter, suffered great losses in its coffee harvest due to harsh weather conditions. This eventually prompted the price of unprocessed coffee beans in Vietnam to rocket to VND20 million, then VND40 million per tonne. Thanks to the price hikes, many Central Highlanders were able to afford villas and buy modern conveniences.  

Between 1997-1999, coffee prices nosedived from VND30 million/tonne to VND15 million/tonne. However, paying no heed to the imminent disaster, coffee businesses and farm owners continued to look for partners while growers poured more investment into new coffee plantations.

In 2000 when the coffee acreage in Dak Lak province had expanded to more than 264,000ha, prices fell drastically. At times a kilo of fresh coffee was traded at VND1,200 or half the price of a kilo of eggplants. In despair, many growers and employees left the land and many large houses were auctioned off for just VND80 million. Even well-known businesses such as Coffee Company 719 and Phuoc An Coffee Company which both received the title “Labour Hero in the Renewal Process” ran into debt. However, times have changed and coffee growers and businesses are once again enjoying the good times.

New idea

In July 2007, Dak Lak province held a seminar attended by many reputable scientists, cultural activists and politicians. At the seminar, Director General of Trung Nguyen Coffee Company Dang Le Nguyen Vu put forward an initiative to turn Buon Ma Thuot into the global capital of coffee. Accordingly, the world’s No 1 coffee trademark will be based in Buon Ma Thuot alongside a sustainable coffee growing, processing and trading industry. In 25 years’ time, Buon Ma Thuot will have a coffee museum, a coffee research institute and cafes that offer different tastes. Connoisseurs will sip coffee in a distinctive cultural space with imposing views of the Central Highland region. In addition, spa resorts and coffee farms will be built to serve the tourism sector.

According to Nguyen Vu, the initiative will be undertaken if it receives support and backing from investors. However, many people believe that Mr Vu’s plan is unfeasible. Former director of the Ea Kmat Coffee Research Institute Dr Phan Quoc Sung, who has spent years studying coffee trees in the Central Highland region, questioned whether Buon Ma Thuot would attract billions of coffee connoisseurs around the world in the future.

Dr Le Ngoc Bau, deputy director of the Tay Nguyen Agro-Forestry Science and Technology Institute, said that the road to such a coffee paradise is too long to follow.

“Most coffee growers in the region do not strictly follow standard farming practices. They do not have forest buffer zones to prevent strong winds and sunlight. They use a lot of water, fertilisers and pesticides. Incidentally, this kind of farming causes harm to nature, water sources and the soil,” said Dr Bau.

The argument is not “a red herring” nor Mr Vu’s idea is groundless. Take Thang Loi Coffee Company in Dak Lak province as a case in point. Its new production model overcomes most of the coffee industry’s shortcomings from ecological matters to quality management in a satisfactory way. Harvested fresh coffee must be ripe and reddish. After being processed, the company generates first grade coffee beans and has won large orders from Japanese importer Mitsubishi. The price of its coffee beans is often US$80-US$100/tonne higher than the average price on the world market.

However, director of the Company Nguyen Xuan Thai does not believe that a coffee paradise will take shape in Buon Ma Thuot. In his opinion, the most important thing for the coffee industry is to restructure its production and establish models of cooperation among growers such as inter-household or cooperatives models in which they agree to apply farming practices from growing and tending to harvesting and processing.

“Without doing this, growers will have to rely on the market which is manipulated by speculators,” said Mr Thai.

Dak Lak province has drawn up a scheme to develop the coffee industry in a sustainable manner till 2020. Under the scheme, new farming techniques will be applied to production to increase the competitive edge of Buon Ma Thuot coffee on the world market.      

Despite having different views, coffee businesses and growers are aware of the potential, advantages and disadvantages of the coffee industry. Yet, they dream of a genuine paradise in the future, brimming with confidence that a strong Vietnamese coffee trademark will eventually be established.