Dak Ha Coffee Import - Export Co.: Edging Competitiveness by Technology Investment

The newly established Dak Ha Coffee Import - Export Company specialising in purchasing, processing and exporting coffee, has bought 1,500 tonnes of coffee and sold 879.504 tonnes, with the return on turnover at 0.25 % this year.

 

The company averagely pays more than VND2 million per person a month.

 

Mr Nguyen Hoa Chinh, Deputy Director of Dak Ha Coffee Import - Export Company, said the main product is fresh coffee. Dak Ha District advocates local processing of coffee; thus, the demand for drying yards reaches 60 hectares. The district is now falling short of 15 hectares of drying yards. The insufficient drying area for 70,000 - 100,000 tonnes of coffee forces thicker drying layers, which lead to more substandard products, estimated at 150 tonnes -300 tonnes, worth VND3.5 - 7 billion. The company’s drying yards are nearing expiry while processing lines are already outdated.

 

Chinh said the investment for modern technology is an important factor to boost export value and sharpen competitiveness. Thus, the Vietnam Coffee Corporation (Vinacafe) approved VND4.7 billion for the company’s infrastructure investment. Dak Ha Coffee Import - Export Company has also asked for VND2 billion to expand its drying yards by 1.7 hectares and upgrade storehouses.

 

It has requested for more capital for infrastructure investment to scale up operations under its business strategies. Accordingly, it asked for VND8 billion for an export processing line, including VND2.5 billion for the workshop and VND5.5 for equipment. Besides, it restores and upgrades existing facilities.

 

In the 2009 -2010 crop, the company will borrow money from banks to raise its coffee bean purchasing volume to 3,000 tonnes. It expects to ship 1,000 tonnes abroad in 2010. It hopes to make VND1 billion profit this year.