Research On The Development Of Coffee Industry In Dak Lak Province

Viet Nam coffee industry in general and Dak Lak coffee industry in particular have developed rapidly over time,significantly contributing to the development of Dak Lak province,Central Highlands region and the country as well.The rapid development of coffee in Dak Lak area has brought enormous socio-economic benefits to the province.However,the Dak Lak coffee industry has faced many problems in different aspects:Firstly,the coffee cultivating area has risen dramatically without planning.Second,coffee production has sharply increased,but economic inefficiency and the competitive role of Vietnamese coffee in the global market is relatively weak.Third,the cultivation and backward processing is limited to the quality of exported coffee.Fourth,intensive farming in the recent past tends to use more fertilizer and irrigation water leads to depletion of land and water resources.Fifthly,the product of deep processing is not much,mainly exporting coffee bucket,the added value of the product is low.Sixth,the organization of production,processing and trading of commodities is inadequate not keep up with the development of a market economy.In order to address the drawbacks of producing coffee in Dak Lak,the authorities have developed projects,issued resolutions as well as organized a number of seminars on the development of the coffee industry.Additionally,researchers have analyzed,assessed and proposed solutions related to the development of the coffee sector.Thus,although studies have examined the state of the industry development and analyzed the impact factors,the sectoral development solutions in various aspects and by diverse objectives,no comprehensive and systematic research of Dak Lak coffee industry has been confirmed in recent years.Furthermore,there is a need to have a number of in-depth studies about the value chain of the coffee industry,to find measures to increase the value of the coffee chain,and to strengthen links between production-processing-consumption of coffee.Requirements on hygiene and food safety together with the efficiency in the economy,society and environment also need to be taken into account.The author also draws the following conclusions for the thesis:(1)Through the study of coffee supply chains in Dak Lak Province,there are too many intermediaries involved in the chain leading to an in increase circulation costs,unknown origin of coffee.Direct coffee producers are being forced to price,making the price increase,quality decrease,and decreasing the production efficiency.(2)Investing in the production of coffee powder and instant coffee to increase added value and create higher profits for producers.(3)Through empirical evidence(correlated regression analysis model Cobb-Douglas,DRC competitive advantage analysis method,etc.),the author concludes:despite many difficulties due to fluctuations in the world coffee market and the price of inputs,coffee production still has significant comparative advantages at this time,while increasing capital,labor and productivity(in the planning)is still effective in producing and trading coffee.(4)Enhancing the linkage between the stages of production,processing,consumption to form a uniform chain,is an important measure in improving the quality and decreasing cost of products.(5)The development of the coffee industry should be closely linked with environmental protection.It is impossible for the socio-economic development to not take seriously environmental issues.It is also a development strategy that ensures the long-term sustainable development of the essential industry.Hence,arising from the need of improving the competitiveness based on the development of efficiency and sustainability,which contributes to the increase of income for coffee producers,the author chooses the topic "Research on the development of coffee industry in Dak Lak province" as my thesis.