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Dak Nong coffee

Posted Date:25-03-2014 | 15:12:59
Coffee is a moreish and delicious drink,and preferred on the global. Fertile basaltic soils, topography, climate and appropriate rainfall have created favorable conditions for growing coffee plants on the Central Highlands plateau-Vietnam, including Dak Nong province as the key area of coffee cultivation, which makes Vietnam become one of the strongest countries in the export of this famous goods.

The advantage of coffee production in Dak Nong province:

With favorable natural conditions, Dak Nong’s land is suitable for growth and development of coffee, "nurtures" high quality coffee beans which creates coffee’s especially delicious flavor.

With 393,000 hectares of fertile basaltic soils (accounting for over 60% of the province's natural area) distribute on the basalt plateaus concentrated on Gia Nghia town, disatricts of Dak Lap, Dak Song and Dak Mil, the east of Cu Jut and Krong No district, which is one of the deciding factors of competitive advantage of the perennial industrial plants of high economic value here.

Structure and area for coffee plants in Dak Nong:

In the agricultural structre of the province, coffee plant is one of top plants, accounts for 65% of the perenial industrial plant areas of the province.

In 2010, the total coffee growing area of ​​the province was 86,538 hectares , in which 76,282 hectares was the harvested area, with the yield of over 150 thousand tons; in 2011, the total area was ​​91,081 hectare, 81,081 hectares was the harvested area with the yield of nearly 180,000 tons , in 2012, the total area 115,270 heactares, in which 101,845 hectares was the harvested area, with the yield reached over 200 thousand tons.

Coffee growing area concentrates mainly in the districts of: Dak Song (25,103 hectares), Dak Mil (20,710 hectares), Tuy Duc (17,047 hectares), Dak R'Lap (16,678 hectares). Two coffee varieties grown in Dak Nong are Coffea arabica and Coffea robusta, in which Coffee robusta is mainly.

Situation of processing, exporting Dak Nong coffee:

In the total turnover of the province's export products, coffee always is the leading product on its export output over the years.

In the period 2006-2011, the export coffee output of the province was 355,328 tons, reaching 605 million USD; only 2011 was estimated at 80,000 tons, reaching 160 million USD; in 2012 acheived 110 thousand tons, the export value reached over 240 million USD.


However, the main export product is coffee bucket. The number of direct export units are little. With 8 coffee processing plants in the province with the capacity of 200 tons of coffee flour per year just meet the processing needs of about 20% of coffee output the province. These are the factors that reduce the quality and value of Dak Nong coffee.

Difficulties in production:

During production process, coffee growers can not avoid difficulties, especially difficulties in production funds.

Lack of production funds is the underlying cause leading to many other related problems as: Due to lack of fund households who buy fertilizer defferred  payments at the rate of 2-4% per month; households cannot take the innitiative in  fertilizing  for the right time which leads to low productivity; Also they usually have to sell fresh and green coffee  for early payment of debt which causes lower production efficiency... and the most difficulty as making the scale of production limite, income of the family being not guaranteed. (Quoting Notes on Operational Plan of value chain development of Dak Nong coffee, in the period 2012-2013 and 2014-2016).

It shows that forming the value chain from production, purchasing, processing and to consumption is extremely important, which have decisively competitive advantage of the product and production value for Dak Nong coffee. 

Performing the coffee value chain development towards sustainability:

To assist people to overcome these difficulties, and further promote economic efficiency brought from coffee growing, Dak Nong has focused on production investment towards developing strength coffee value chain.

The project of "Sustainable economic development for ethnic minorities in Dak Nong" (Project 3EM) is one of the units which is actively supporting on the implementation of this objective.

Currently, the project 3EM is implementing "Construction and development of value chain for sustainable coffee with the participation of the poor and indigenous ethnic minorities" in the period 2012-2016 in five districts of the province with a total budget of over 8.7 billion, in which, the capital from projects 3EM is over 6.5 billion VND to support  habitants.

By the establishment of the coffee growers group, the Project will transfer the agricultural advances to farmers, and create linkages, develop centralized production-area with the goods production scale; coordinate with and functional departments, organize training courses to standardize technical processes in producitin according to standards of VietGap, 4C, UTZ; coordinate with the unit of suppling inputs such as fertilizers, pesticides and units of purchasing, processing to support for people in order to create high quality goods which creates brand name for Dak Nong coffee, meets the requirements of the market.

Coffee development planning and investment demand of the local:

To ensure the implementation of long-term strategy, the province has deploied the implementattion of the area planning and coffee processing industrial planning in 2020.

- By 2020, the province will stabilize 66,000 hectares of coffee growing  area, ensure the productivity of 22-24 tons per hectare, yield of 150 thousand tons and over.

- On the industry processing:

In the period 2011-2015: Province will prioritize investment in construction:

+ 01 the coffee export processing facility with the capacity of 30,000 tons per year in Dak Mil district.

+ 02 the coffee export processing facilities in Krong No và Dak R’lap dustricts, each facility achieves 10,000 tons per year.

+ New building in Dak Mil and Dak R’lap districts of somes flour coffee and instant coffee processing facilities with the capacity of 1,000 tons per year.

In the period 2016-2020, the province will invest in building facilities to process products from coffee in Gia Nghia with the capacity of 1,000 tons of products per year and updgraging the scale of processing plant in Dak Mil district with the capacity of over 5,000 tons per year.

Þ    On the goal-oriented base and practical requirements, associating with the units of supplying materials: fertilizers, pesticides and so on, investing in the construction of the deep processing plant with modern equipment line and the directly coffee export company, are the urgent needs of  Dak Nong today.

The project to strengthen sustainably economic capacity for ethnic minorities groups of Dak Nong province (the project 3EM)


Address: Road No.23/3, Nghia Duc ward, Gia Nghia town, Dak Nong province.

Tel: 05016.260.823 

Fax : 05016.260.823


Email: 3em@daknong.gov.vn

Department of Science and Technology of Dak Nong province


Address: Phan Ke Binh road , Sung Duc Administrive zone, Nghia Tan ward, Gia Nghia town, Dak Nong province

Tel: 0501.3.600.333

Website: skhcn.daknong.gov.vn

Dak Nong province’s Investment promotion Center


Address: Road No.23/3, Nghia Duc ward, Gia Nghia town, Dak Nong province.

Tel: 05013 547 533

Fax: 05013 548 005

Website: ipc.daknong.gov.vn



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