Nestle to help improve the Vietnamese coffee industry

Vietnam still has a long way to go to overhaul Brazil in the global coffee production stakes, but that isn’t going to stop them – and Nestle – from trying to topple the South American nation and ascend to the top of the coffee totem pole.

Figures, published by the U.S Department of Agriculture indicate that despite suffering a tumultuous 2013-14 harvesting season, Vietnam is set to claw the ground that they’ve lost to Brazil back in the coming years.

The projections are certainly positive.

However the real intrigue is Nestle’s role in Vietnam’s lofty ambitions.

Last year, it has been estimated that Nestle taught coffee farming techniques to around 21,000 growers and this year, the Swiss food giant, who have deep roots in the global coffee industry thanks to their confectionary and beverage brands, have sent eight experts to some of Vietnam’s key agricultural regions. These excellent eight will work in conjunction with 300 Nestle trained farmers to pass on the information to an expected audience of 20,000 individuals.

During 2014, Nestle purchased roughly 20% of the Vietnamese coffee harvest – some 1.7 million tons of beans. Those beans were then processed and exported and typically used in Nestle’s best-selling instant coffee brands.

In addition to this, Nestle already produces Nescafe and Milo branded beverages in specialist production factories in the country.

It is hoped that this strong relationship can prove to be mutually beneficial for all the interested parties, ranging from the farmers to the suppliers, through to Nestle themselves.

“In the long term, educating farmers will benefit both them and Nestle, since it will enable us to purchase high-quality beans,” explains the managing director of Nestle Vietnam, Ganesan Ampalavanar.

It is believed, and hoped, that with the right training and guidance, Vietnamese farmers can increase efficiency and therefore increase productivity. According to reports, it is stated that an over reliance on pesticides, fertilisers and water is having a negative effect on harvests. The question is, can they move upwards?

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Photo: Joachim S. Müller (Creative Commons)