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Vietnam: top 1 of coffee export and new cocoa dream !!!

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Vietnam to earn 3 bln USD from coffee exports in 2014
Apr 23,2014
HANOI, April 23 (Xinhua) -- Vietnam is expected to sell some 1. 5 million tons of coffee to world market in 2014 to earn 3 billion U.S. dollars, said Vietnam Coffee-Cocoa Association (VICOFA) on Wednesday.

In the first quarter of 2014, a total of 602,000 tons of Vietnamese coffee worth 1.2 billion U.S. dollars was exported, up 25.3 percent in volume and 14.9 percent in value year-on-year, said General Department of Vietnam Customs.

In the first two months, Vietnam's coffee was sold at average export price of 1,880 U.S. dollars per ton, down 10.2 percent year- on-year, said a report by Vietnam's Ministry and Agriculture and Rural Development.

VICOFA predicted that the current droughts in coffee growing countries would possibly cause decrease of global coffee output, which is expected to lift up coffee prices.

Of the two main types of coffee, Arabica is sold at 4,300 U.S. dollars per ton while the price of Robusta is 2,100 U.S. dollars per ton. As a result, there is high opportunity for Vietnam to boost its coffee exports as the country accounts for 60 percent of the world's Robusta output, said the association.

Vietnamese coffee has been shipped to over 80 countries and regions worldwide. Germany and the United States remained as Vietnam's largest coffee importers with 14 and 11 percent of market shares, respectively, the website of Vietnamese government quoted VICOFA as saying Wednesday.

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Cocoa Farming Raises Incomes for Vietnamese
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H Kem Buon stands by her cocoa plant.
SUCCESS Alliance
New crop cultivation improves living standards
“The project provided me with a lot of training, knowledge and assistance, and our cocoa trees have been growing well and bearing fruits.”
April 2014—H Kem Buon, an ethnic minority woman in Vietnam's Central Highlands province of Dak Lak, recalls a time when things were not easy for her family. They did not make enough money to cover basic expenses. The entire income of her family with four children was then around $950 (20 million Vietnamese dong) a year, which came from maize, rice and corn crops on their 1.4 hectares of farm land. Her family’s most valuable assets were an old house and an obsolete motorbike.

“Our family used to face so many difficulties. We worked very hard to earn a living but could not make enough for foods, not to mention school fees and hospital expenses for our children,” said Buon.

Cocoa was introduced in the province in 2007 by the Sustainable Cocoa Enterprise Solutions for Smallholders (SUCCESS) Alliance program supported by USAID and its industry partners. When Buon participated in the program in 2009, she received 300 free seedlings. In addition to being trained on essential techniques for cocoa cultivation and development, she learned about harvest and post-harvest practices.

“At the beginning, we had difficulties since I did not know much about farming technique, also with no money to purchase fertilizers and insecticides to grow and develop cocoa trees,” said Buon. “Then everything got better and better. The project provided me with a lot of training, knowledge and assistance, and our cocoa trees have been growing well and bearing fruits. Now I collect cocoa pods every week and sell them to pay for daily expenses for my family. We will try to work very hard to become one of the best smallholder farmers in the community and ensure that our children are able to obtain a good education. The cocoa crops have transformed our life.”

After several years of savings as a result of her enhanced income from cultivation of cocoa and other crops, she is going to finish building her new house, valued up to $24,000 (500 million Vietnamese dong).

“Many people come to visit our house and ask me about farming techniques, pruning, integrated pest management, market access and information,” she said. “I am ready and willing to help them with information on how to grow cocoa so that they can improve their standard of living. I am very happy to see other cocoa gardens in the commune growing well also, and many people earn decent incomes from cocoa. I wish my house will become a cocoa learning center where local people can discuss cocoa growing techniques and share valuable experience.”

Since 2009, through the SUCCESS Alliance program, USAID has helped increase the income of 5,000 new cocoa farmers in the Central Highlands, boosting long-term income potential for some of the country’s poorest people. Based on the success of cocoa cultivation in helping reduce poverty, the Government of Vietnam has approved a master plan to reach 80,000 hectares of cocoa cultivation and 110,000 tons of cocoa exports by 2020.

The SUCCESS Alliance program in the Central Highlands was built on the success of a U.S. Department of Agriculture/USAID cocoa program launched in 2003 in the Mekong Delta and southern provinces. This program laid the foundations for cocoa as a new crop and agro-industry in Vietnam. Since 2007, with funding from USAID, in-kind contributions from Mars Inc., and technical collaboration from the World Cocoa Foundation and other local and international industry partners, over 5,000 Central Highland farmers in Dak Lak and Lam Dong provinces, of whom 60 percent are ethnic minorities, have received regular training on cocoa production and adopted intercropping practices. The SUCCESS program, which ended in April 2014, and its successor program, Sustainable Cocoa for Farmers. have also trained nursery owners and fermentary operators to ensure high-quality cocoa beans while building strong local technical and management capacity for economic and environmental sustainability.

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Vietnam’s cocoa dream
VietNamNet Bridge – Being a small cocoa producer, Vietnam still nourishes the hope of selling cocoa worldwide.

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Never before has Vietnam seen so many foreign invested projects in cocoa production like now. The “big guys” in the world now eye Vietnam as the newly emerging material area.

Vietnam once followed the one-century path to become the world’s biggest coffee grower. Will the same thing repeat with cocoa?

Great opportunities have come

The big guys have every reason to pay attention to Vietnam. A report of the US Mars Incorporated showed that 160,000 tons of cocoa lacked worldwide in 2013, while the figure may rise to 1 million tons by 2020. Cocoa would become increasingly valuable because of both the sharp falls in the cocoa output from Ghana or Ivory Coast, Indonesia and the higher demand.

India, China and Indonesia alone provide 2.8 billion consumers, each of them needs 0.06 kilos per annum. Meanwhile, every Japanese consumes 1.8 kilos per annum.

While Asia is believed to become the biggest chocolate market in the near future, Vietnam is believed to be the potential cocoa supplier in the region.

Vietnam’s current exports remain modest, just several thousands of tons a year. However, Vietnam’s cocoa quality is in no way inferior to any other supply sources. Cocoa collectors like Vietnam’s cocoa most in Asia because the material is very good to make chocolate.

Puratos Grand-Palace Vietnam has recently received award for the best cocoa in Asia Pacific in Paris, which was made of the cocoa beans grown in the southern province of Ben Tre.

Cargill, Puratos Grand Place and others have come to Vietnam to collect cocoa, where they triggered a stiff competition to dominate the market.

Mars has set up a cocoa development center in Cu Hue commune of Ea Kar district in Dak Lak province. Cargill has a collection center in Hoa Thuan commune of Buon Ma Thuot city. Puratos Grand Place Vietnam is running a factory that preliminarily treats cocoa materials.

The Dutch government recently has funded the private – public partnership (PPP) cocoa sustainable development project in Vietnam. Helvetas, Oxfam, JICA, AID all have also given support to cocoa projects.

Vietnam itself is a large market. It is estimated that it consumes 5,250 tons of chocolate every year, most of which has been fed by the imports.

How to turn dream into reality?

About 4,000 tons of dry cocoa is made out every year. Meanwhile, a cocoa processing plant has the capacity of 10,000 tons per annum at minimum.

Vietnam moves ahead with the projects on developing the cocoa growing areas. Huynh Quoc Thich, Deputy Director of the Dak Lak provincial agriculture department said competent agencies have been very demanding in quality from the very beginning when kicking off cocoa growing projects.

More than 50 percent of Vietnam’s cocoa has got UTZ quality certificates.

Dinh Hai Lam, Vietnam Cocoa Development Director said nearly 100 percent of Vietnam’s cocoa can satisfy the requirements.

Nguyen Ba Dung, technique advisor from the said PPP project, confirmed that Vietnam’s cocoa has been highly valuated in terms of quality.

The agriculture ministry plans to develop 33,500 hectares of cocoa growing area by 2015 and obtain $70 million worth in cocoa export turnover a year.
 
Choc horror: It might be Easter but the world is running out of chocolate because demand in China is outstripping cocoa bean production and forcing prices up


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The price of chocolate could soar over the next few years as surging demand puts further pressure on the global cocoa crisis – and experts predict the demand could become unsustainable by 2020.

Experts are warning that a growing taste for chocolate in Asia – particularly in China – means cocoa farmers will need more help to provide a greater amount to export or manufacturers will be forced to use less cocoa in their products.

It is predicted chocolate prices will soar to keep up with the rising demand – otherwise consumers will increasingly be offered products filled with substitutes, such as nuts and fruits, to ‘pack out’ chocolate bars.

The news comes as millions of people across Britain are set to indulge in Easter eggs and chocolate treats this weekend.

It is estimated that the growing demand for cocoa will be unsustainable by 2020, unless more is done to help cocoa growing communities.

Most cocoa farms are situated along the west coast of Africa – where many farmers are said to be living off less than $2 a day.

In December, the International Cocoa Organisation said there could be a 150,000 tonne deficit of the amount of cocoa beans produced in 2014.

The organisation said global cocoa supplies were heading towards the longest production shortfall in more than five decades.
The rising demand for cocoa has already seen prices soar – and its feared prices could continue to rise. The chocolate market in Asia is already worth more than $12billion and demand is continuing to increase.

In March, cocoa prices reached a two and a half year high at £1,896 per tonne in London and US$3,031 per tonne in New York.

However, unless more is done to help cocoa production, the crisis will continue until it becomes unsustainable.



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The chocolate market in Asia is already worth more than $12billion and demand is continuing to increase



Mondelez International – a multinational confectionery, food and beverage conglomerate – said it had pledged to invest more than $400 million to help ease the crisis.

Over the next ten years, it is set to pump millions into Ghana, Ivory Coast, Indonesia, India and the Dominican Republic to help improve the productivity and life of cocoa farmers.

Chris McGrath, head of the Cocoa Life programme at Mondelez, told The Times: ‘We realised that there was a long-term supply shortage.

‘Farmers are ageing and I don’t see the next generation behind them. We have to help transform the chain.’

The International Cocoa Organisation also said plans were in place to help cultivation in Indonesia.

With investment in cocoa processing industries growing at a fast rate in the country, the Government is considering cancelling tax on cocoa bean imports as production levels have fallen short in fuelling the country’s domestic grinding requirements.


Read more: Chocolate demand in China outstripping cocoa bean production | Mail Online
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