Monday, December 5 2016

VietNamNews

Coffee on the boil

Update: August, 22/2015 - 12:00

People from other countries are growing coffee in Viet Nam.

While this is making it possible for Viet Nam to produce more coffee, Vietnamese coffee farmers are having a hard time.

They have never produced as little coffee as they are producing now.

Some Vietnamese coffee farmers are running into terrible problems.

In March, Nestle opened an $80 million decaffeinated coffee factory in Dong Nai Province's Amata Industrial Park.
In March, Nestle opened an $80 million decaffeinated coffee factory in Dong Nai Province's Amata Industrial Park. - Photo baodongnai

DONG NAI (VNS) — Coffee prices have dropped to record lows in southern Dong Nai province, pushing coffee growers, particularly small enterprises, to the verge of bankruptcy.

At the same time, large foreign-funded growers, such as Nestle and Neumann Kaffee from Europe, are gaining ground.

Coffee prices have continuously fallen and are now hovering around VND36,500 (US$1.7) per kilogram, the lowest price in years.

This has led to tonnes of coffee from previous harvests being left in farmers' warehouses.

According to Dong Nai's Department of Statistics, coffee bean exports fell by 63,000 tonnes in the first seven months of last year to slightly more than 134,000 tonnes. Export revenue of almost $271 million was down 47 per cent year on year.

Nguyen Van Thu director of G.C Food Limited Company in Trang Bom district said his company was processing coffee to export to the US.

Currently, the price of unprocessed coffee is at the lowest level while foreign companies continue expanding.

Thu said his company had begun investing in coffee processing with a view to exporting the finished product globally. In the first seven months of this year, it exported 100 tonnes of coffee products to the US market.

It is expected that by the end of the year, the company will export another 200 tonnes.

Recently, the Germany-based Neumann Kaffee group opened a coffee processing factory in Long Thanh District, the second facility of the company in Viet Nam. The group has 46 factories in 28 countries.

The Swiss company Volcafe Vietnam has just opened a processing plant with a capacity of 100,000 tonnes of coffee products a year.

In March, Nestle opened an $80 million decaffeinated coffee factory in Dong Nai Province's Amata Industrial Park. The new facility, the second phase of the Nestle Tri An plant, will produce decaffeinated coffee for use in Nestle plants all around the world.

This is the first decaffeinated coffee factory in Viet Nam and Nestle's second globally.

Viet Nam is the second biggest coffee exporter worldwide behind Brazil. — VNS

 

GLOSSARY

 

Coffee prices have dropped to record lows in southern Dong Nai province, pushing coffee growers, particularly small enterprises, to the verge of bankruptcy.

If coffee prices have dropped to record low, they have never been as low as they are now.

Enterprises are businesses.

To be on the verge of bankruptcy means to be very close to having absolutely no money to carry on with keeping a business running.

At the same time, large foreign-funded growers, such as Nestle and Neumann Kaffee from Europe, are gaining ground.

Foreign-funded growers are people who grow with help in the form of money being given to them by people, or companies, from other countries.

When these foreign-funded growers are gaining ground, their businesses are doing well and they are getting ahead of other coffee growers.

Coffee prices have continuously fallen and are now hovering around VND36,500 (US$1.7) per kilogram, the lowest price in years.

If the price hovers around VND36,500 it stays around that figure without going very much lower.

This has led to tonnes of coffee from previous harvests being left in farmers' warehouses.

Warehouses are buildings in which things are stored away until they are needed.

According to Dong Nai's Department of Statistics, coffee bean exports fell by 63,000 tonnes in the first seven months of last year to slightly more than 134,000 tonnes.

Coffee comes from coffee beans, which grow on coffee trees. Coffee bean exports means the coffee that is sold to buyers in other country as beans.

Export revenue of almost $271 million was down 47 per cent year on year.

Export revenue means money that is earned from selling things to buyers in other countries.

Nguyen Van Thu director of G.C Food Limited Company in Trang Bom district said his company was processing coffee to export to the US.

To process coffee means to change it from beans in powder, which is the form most people take it when they drink coffee.

Currently, the price of unprocessed coffee is at the lowest level.

Currently means now.

The Swiss company Volcafe Vietnam has just opened a processing plant with a capacity of 100,000 tonnes of coffee products a year.

If a plant has a capacity of 100,000 tonnes of coffee products a year, it is able to produce that amount of tonnes of coffee products.

In March, Nestle opened an $80 million decaffeinated coffee factory in Dong Nai Province's Amata Industrial Park.

Coffee contains a substance called caffeine, which is what gives you a rush when you drink it and can keep you awake. Sometimes this caffeine is taken out of the coffee for people who wish to drink coffee without getting those feelings.

 

WORKSHEET

 

Find words that mean the following in the Word Search:

1. The state you find yourself in when you have no money to run your life or your business.

2. The adjective that describes the country where the company Volcafe Vietnam comes from.

3. The substance in coffee that gives you a rush and keeps you awake after a cup.

4. The world's biggest exporter of coffee.

5. Another coffee company from Europe.

 

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ANSWERS:

 

© Duncan Guy/Learn the News/ Viet Nam News 2015



































 

 

 1. bankruptcy; 2. Swiss; 3. caffeine; 4. Brazil; 5.Nestle.

 

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