How Vietnam becomes the Coffee Giant?

Think of coffee and you will probably think of Brazil, Colombia, or maybe Ethiopia. But the world’s second largest exporter today is Vietnam. How did its market share jump from 0.1% to 20% in just 30 years, and how has this rapid change affected the country?

When the Vietnam War ended in 1975 the country was on its knees, and economic policies copied from the Soviet Union did nothing to help.

Collectivizing agriculture proved to be a disaster, so in 1986 the Communist Party carried out a U-turn – placing a big bet, at the same time, on coffee.

Coffee production then grew by 20%-30% every year in the 1990s. The industry now employs about 2.6 million people, with beans grown on half a million smallholdings of two to three acres each.

This has helped transform Vietnamese economy. In 1994 some 60% of Vietnamese lived under the poverty line, now less than 10% do. Vietnamese coffee has bold taste and strong impact on drinker, which makes it unable to forget. Following these features of coffee, Vietnamese has developed special lines of coffee:

 

Vietnamese coffee style

  • Ca phe da – Coffee served with ice
  • Ca phe sua da – Coffee served with condensed milk, on ice
  • Ca phe trung – like a cappuccino, except with the addition of an egg or two
  • Weasel coffee – The process of making coffee by feeding beans to civets – a type of weasel – and then roasting the excreted beans.

Weasel Coffee from Huongmai cafe

This is how most Vietnamese coffee is consumed, and is partly why about a quarter of coffee drunk in the UK comes from Vietnam. The Vietnamese traditionally drank tea, like the Chinese, and still do. Vietnamese people do drink it – sometimes with condensed milk, or in a cappuccino made with egg – but it’s mainly grown as an export crop. Coffee was introduced to Vietnam by the French in the 19th Century and a processing plant manufacturing instant coffee was functioning by 1950, no wonder why Vietnamese coffee style is partly influenced by the French colonist

British consumers still drink a lot more of that than of fancy coffees, such as espressos, lattes and cappuccinos.

High-end coffee shops mainly buy Arabica coffee beans, whereas Vietnam grows the hardier Robusta bean.

Arabica beans contain between 1% to 1.5% caffeine while Robusta has between 1.6% to 2.7% caffeine, making it taste bitterer.

There is a lot more to coffee, though, than caffeine.

Complex flavour chemistry works to make up the flavours inherent in coffee. Caffeine is such a small percentage of total content, especially compared to other alkaloids, that it has a very minute effect on flavour.

Some companies, like Nestle, have processing plants in Vietnam, which roast the beans and pack it.

But Thomas Copple, an economist at the International Coffee Organization in London, says most is exported as green beans and then processed elsewhere, in Germany for example. Becoming the 2nd largest coffee exporter has supply a huge chance of occupation for the unemployed, which enhances the nation economy. Every farmer in Vietnam is the researcher of his own plot, Vietnamese farmers know what they do, that why Vietnamese coffee has such seductive feature that hardly other could compare.

Source: BBC News

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