01:53 (GMT +7) - Saturday 26/05/2018

Business

Nutifood enters into coffee production

Released at: 21:13, 13/05/2017

Nutifood enters into coffee production

Photo: Nutifood

Company acquires 25% of State-run Phuoc An Coffee Co. in coffee capital of Dak Lak in the central highlands.

by Tue Lam

The Nutrition Food Joint Stock Company (NutiFood), known for its Grow Plus milk brand, has entered into the coffee market after acquiring 25 per cent of the Phuoc An Coffee Co., a State-run coffee concern in the central highlands province of Dak Lak.  

With $5.3 million in charter capital, Nutifood announced a partnership with Dak Lak province to invest in high-tech agriculture and become a strategic shareholder in Phuoc An Coffee, with total investment capital of VND1 trillion ($44 million).

It will invest in building a coffee processing plant with a brand associated with Dak Lak’s geography and will also conduct research and surveys on applying high-technology in the dairy cattle industry.  

According to Mr. Tran Thanh Hai, Chairman of NutiFood, Vietnam’s coffee production has a global market share of 20 per cent but only 2 per cent of export value, mainly due to it primarily exporting raw materials. “Nutifood therefore wants to make use of its distribution network to bring Vietnamese coffee to international markets,” he said.

Mr. Nguyen Tuan Ha, Deputy Chairman of the Dak Lak Provincial People’s Committee, praised NutiFood’s investment cooperation in sustainable agriculture development, especially high-tech agriculture. He stressed that the government and the provincial authority prefer investors with sustainable development and high-tech applications and commits to creating the conditions necessary for them to implement their investment effectively.

The US Department of Agriculture (USDA) estimated Vietnam’s coffee stocks at the end of the 2015/2016 season at 230,000 tons, or 3.83 million bags, down 40 per cent from a year previous.

Coffee exports have been rising and Vietnam’s shipments between October 2016 and the start of the current crop year last month totaled 667,000 tons, up nearly 5 per cent year-on-year, based on the latest Vietnam Customs data. The crop year runs through to September.

User comment (0)

Send comment