Producing speciality coffees require meticulous care at every stage. The UK-Việt Nam Free Trade Agreement has substantially helped Việt Nam exporting coffees to the UK. — VNA/VNS Photo
HO CHI MINH CITY: The DakLak September 2nd Import-Export Company Limited (Simexco DakLak) says the United Kingdom is a strategic market for its specialty coffee products.
Le Duc Toan, its sales director in charge of the southern region, said the company exports around 100,000 tonnes of coffee beans a year, with the United States, European Union (EU) and China being its major markets.
Referring to the United Kingdom, he said: “We primarily export speciality coffee to the United Kingdom, averaging around 20 to 30 containers per year. This is a niche market for Simexco.”
Speciality coffees offer exceptionally high added value, with their prices three to four times that of regular coffees, but the cost of producing them is also significantly higher, he added.
One of Simexco’s key strengths is its ability to export directly to roasters, bypassing traders in Vietnam, which serves as a significant competitive advantage for exports.
Simexco DakLak was a pioneer in developing coffee growing zones following the EU Deforestation Regulation (EUDR) standards.
It has signed contracts for exporting EUDR-qualified coffee products, he said.
The UK-Vietnam Free Trade Agreement (UKVFTA) has greatly helped it export to the United Kingdom, he added.
Under the UKVFTA all tariffs were eliminated in 2021 on coffee, natural honey, fruit juices, fresh flowers, and both fresh and processed fruits and vegetables exported from Vietnam to the United Kingdom.
According to the “Connecting the United Kingdom and Vietnam in Agriculture, Food and Drinks” report, commissioned by the British embassy in Hanoi and done by Edelman Global Advisory, Vietnam holds the potential to emerge as a significant supplier of products to UK retailers.
Processed products like coffee, cashew and pepper are already widely available in major UK supermarkets.
With the United Kingdom’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, access for Vietnamese agricultural products will improve.
In recent years, Vietnam’s agricultural sector has been transitioning towards reduced emissions, adopting organic processes and harnessing renewable energy sources.
These sustainability efforts will resonate with UK consumers who prioritise origin traceability, food safety and environmentally friendly and ethically sourced goods, the report said.
According to the Vietnam Coffee Association, one of the key concerns of the coffee industry today is the development and promotion of specialty coffees that embody Vietnam’s unique characteristics to enhance the supply chain’s value and global recognition. — Viet Nam News/ANN
