Ageing coffee trees in Vietnam are set to be replaced with subsidies provided to the Western Highlands Agriculture & Forestry Science Institute (WASI) by Nestle.

The Saigon Times Daily reports that Vietnam currently accounts for nearly 30% of the world’s coffee trade volume – around 1.6 million tons – and last year earned more than US$3.4 billion for coffee exports.

The majority of the export comprises coffee beans that have not been processed. While the coffee growing area in Vietnam is large, it is scattered which makes it difficult for large-scale farming and processing. At a recent coffee outlook conference, leaders in the industry spoke about the potential for Vietnam to increase its proportion of deep-processed coffee. They also called for the area of sustainably certified coffee to be expanded.

It is estimated that 50,000 to 60,000 hectares of coffee will need to be replanted in the next two years. Yields from the trees, which were planted more than 25 years ago, have declined by up to 50 per cent. Old coffee trees currently make up 30% of the total coffee growing area in Vietnam, which is expected to rise to 50% in the next ten years.

The public private partnership with Nestle will ensure quality coffee planting material is used to replace old trees. Farmers who have replanted using seedlings from unknown origin have reported low survival rates.

Read the full story: Nestle Vietnam supports coffee replanting