What is the concept of export coffee standards? what are the technical standards for this product for each export coffee market are the things that coffee export partners look for every time they have a customer? understand buying products, but this information has not been shared widely and is not systematic Vietnam is known as one of the largest coffee exporting powers in the world with more than 90% of coffee production. The amount of coffee is for export, bringing in an annual export turnover of 2.7 billion USD (2020).
To help export brokerage partners get an overview of the coffee market and especially those outside the industry who want to learn and grasp quickly the export coffee standards so that you can interact with each other. cooperate and serve immediately with their import partners. With experience as a coffee exporter to the US and Japanese markets for more than 3 years, Helena Coffee would like to share details with you in this article!
Before going into details of each export coffee standard for each market, we need to have an overview of the export coffee market first.
Overview of the export coffee market:
In 2020, Vietnam's exports are estimated to reach over 1.7 million tons with an export turnover of 2.7 billion USD, accounting for 18% of the market share and more than 10% of the global coffee value. Coffee is one of the top 10 key products of Vietnam and one of six products with an annual export value of over 3 billion USD. Which, the export of green coffee accounts for the majority, and deep-processed coffee such as roasted and ground coffee, and instant coffee for domestic consumption and export only reaches 12%.
Export coffee market segments
Currently, the export coffee market is divided into 3 related segments and forms relatively clear standards which are:
Specialty Coffee Market:
This is a niche market, emerging recently, and has a strong growth trend. This market is defined and governed by the factor tasting quality score of export shipments, coffee is recognized as a specialty when it has a tasting score of 80 points or more (on the highest scale of 100 points). ) by qualified tasting professionals. This standard system is operated and governed by the World Specialty Coffee Association (SCA), Coffee Quality Institute (CQI), or authorized members from 2 countries. this organization.
Is this information too new for you? It's okay you can read the article >>> What is specialty coffee? <<< To learn more
High-quality coffee market (Premium Coffee):
As a selective coffee market, initially, coffee quality is focused on production, collection, and processing, but has not yet reached the quality threshold of specialty coffee as described above. The taste test ranges from 70 to 79 points. In Vietnam, about 5 years ago, there were models of a Union of high-quality coffee processing farmers, with expertise, production capacity, and large quantities to meet the export demand of the day. further expansion of this segment. Thereby contributing to improving the quality of Vietnamese coffee beans in the international arena.
There are also several other names and classifications for the coffee market in this segment such as certified sustainable coffee (Fairtrade, Rainforest, 4C, UTZ, Bird Friendly, Shade-grown...), Organic coffee Organic, Gourmet Gourmet Coffee…
To produce the quality of the above two segments, coffee processors must apply, and adhere to 3 core principles in the methods of processing green coffee on the farm. Detailed description in the article >>> Green coffee processing methods: Natural, Honey, Washed <<<
Commercial Coffee Market (Commodity Coffee):
As the largest coffee market today, most importers and roasters will come to Vietnam to purchase this product line, which of course comes with fierce competition. Commercial coffee prices on the market are linked to the world coffee market through two exchanges of Arabica and Robusta coffee, this is a battle of price, quantity, payment terms and delivery time. . The biggest disadvantage of this market is that the quality assessment base is based on color perception and error rate, not paying attention to the quality of taste, so the quality may not be good. uniformity between batches.
Article >>> The difference between specialty coffee and commercial coffee <<< will be very helpful for you if you want to learn more
Thus, depending on the requirements of import customers, we will have export coffee standards corresponding to each segment of the market. It will be very difficult for manufacturers and processors to offer you export coffee prices when they do not understand this.
Green coffee export standards (Green Coffee) Vietnam:
This standard applies to two main types of coffee in Vietnam, including tea coffee (Arabica) and Robusta coffee (Robusta). Document of export coffee standards TCVN 4193:2014 compiled by the Department of Agro-Forestry-Fisheries Processing and Salt Industry and Coffee and Import-Export Inspection Joint Stock Company, proposed by the Ministry of Agriculture and Rural Development. recommendations, the General Department of Standards, Metrology and Quality appraised, the Ministry of Science and Technology announced effective nationwide.
Before diving into the quality and standard classification system, you can refer to the diagram of the green coffee production process at the factories in the picture below.
The standard for export arabica coffee
Based on the standard table of export coffee beans above, however, note two more common processing methods that customers often ask about: Arabica Wash/Fully wash (wet processing) and unwashed
The standard for export of Robusta coffee
Based on the standard table of exported coffee beans above, however, save two more common processing methods that customers often ask for: Wet polish, Clean, Standard (G1, G2, G3)...
5 common standards in coffee export contracts include:
• Humidity (M – Moisture): less than or equal to 12.5% • Rate of kernel failure of black and broken beans (BB – Black& Broken beans): 2% max • Rate of impurities (FM – Foreign Matter): 0.5 % max • Packing, preservation (Packaging): PP bag or Jute bag – 60kg • Weight: 1 20ft container (19.2 tons)
And when it comes to this, you already understand that the Grade 1 Export Coffee Standard is the highest standard for the commercial coffee segment. These standards applied to export green coffee are also the corresponding input material standards for export roasters.
Standards of coffee exported to the US
Besides the technical barriers to export coffee standards as described above. According to the US law on the modernization of food safety and hygiene, every 2 years, Vietnamese food exporters to the US must re-register their production facilities and their representatives in the US with the US Food and Drug Administration. Food and Drug Administration (FDA) for a new code. There are 3 important risks that Vietnam's coffee exports often encounter: biological hazards (including parasites and pathogenic bacteria); chemical hazards (radiation, pesticides and drug residues, natural toxins, food breakdown, additives, unused colorants, and food allergens); physical hazards (contamination of glass or metal);
Some of the required permits when exporting include HACCP, GAP, FDA ...
Standards for exporting coffee to Europe
The EU is Vietnam's largest coffee-consuming market, accounting for 40% of the total volume and 38% of the total export turnover. Germany is the largest import market for Vietnamese coffee in the EU. In 2019, this country imported nearly 367 million USD of Vietnamese coffee. Coffee products must ensure that there are no residues of pesticides, ensuring all the strict regulations of this fastidious market.
The common standard that is often required when exporting is a Global Gap: Global Gap: Green coffee standard including Breeding materials, Site history, and site management, Soil and substrate management, Fertilizer use, Irrigation/fertilization, Plant protection, Harvesting, Processing (applicable to on-site or outsourced milling), Waste and pollution management, Recycling and Reuse, Environment Environmental and Conservation as well as Post-Harvest – Mass Balance and Traceability.
Standards for exporting coffee to Japan
Japan is in the top 5 coffee import markets of Vietnam, next to Germany, the US, Italy, and Spain. Most of Vietnam's coffee beans are Robusta, thanks to its strong flavor, strong aroma, and low price, Vietnam's Robusta coffee is establishing a solid presence in the Japanese market. Compared to the Brazilian Arabica which is sweeter, lighter, and more expensive, the Vietnamese Robusta has a darker and sometimes slightly bitter taste. The increase in Robusta coffee market share is due to the demand of Japanese consumers who want to try this delicious and low-priced coffee.
Global Gap and Organic standards are required by importers from Japan when buying coffee for export from Vietnam, however, depending on each customer, differences in culture and language will have different requirements. different strict requirements, especially focusing on commitment, production process, and along with the reputation of partners
Standards for exporting coffee to China
Previously, China was considered a relatively easy market and imported a large amount of coffee from Vietnam. However, at present, China is gradually standardizing and tightening regulations on goods imported into China, including requirements for planting area codes, codes for processing and preliminary processing establishments, green coffee, and coffee. pure roasting … , each trader will not be able to delay registration with the Chinese authorities before being allowed to export to this market.
In April 2021, the General Administration of Customs of China issued Order No. 248 on "Regulations on the management of registration of foreign food production enterprises", and Order 249 on "Measures for the management of food safety". import and export”. You can find out more details if your main export market is China!
Conclusion:
Above, Helena Coffee has described in detail about the system of export coffee standards applied to the main export markets of Vietnam, in which it is clear that the two requirements systems are classified according to the quality scale rating. (for high-quality, specialty coffee) and under an export license (for commercial coffee). Hopefully, Helena Coffee has provided you with an overview of the export coffee market to help you easily serve your import partners and customers.
Helena Coffee is proud to be a producer and processor of green coffee, roasted and ground coffee according to to export coffee standards, initially penetrating the US and Japanese markets, We are looking forward to being your reliable partner. Need any more information on export support, or wholesale distribution quotes for coffee shops, or start-ups, please feel free to contact us. We are always ready to advise you!
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