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VPP coffee exports to resume next year

VPP Progressive plans to resume exports of its arabica coffee beans next year, due to sufficient supplies of the crop from its plantation areas in Chiang Mai's Omkoi district.

Published on December 6, 2007

Chiang Mai

VPP Progressive, a producer and distributor of roasted coffee beans and coffee brewing machines, next year will export the beans to Japan and in 2010 to Italy and Germany, said managing director Veradech Somboonvechakarn. The company has recently marketed medium-roasted arabica-bean products in Isetan Department Store. Coffee beans from the company's plantation and other farmers in Omkoi district are also supplied to D'Oro coffee shops nationwide.

"I'll begin a roadshow in Japan next year after having already dealt with distribution agents in Italy and Germany. My dream is to promote Thai coffee beans in the global market," he said.

VPP Progressive started exporting arabica beans to foreign markets in 1991 but stopped this year, due to a supply shortage. The company will start tapping foreign markets again after calculating it will have a sufficient supply next year.

The company' main coffee plantation in Omkoi district now has sufficient capacity to supply Arabica beans to the company.

Veradech predicts annual production of 300-400 tonnes of arabica beans by 2010, of which 200 tonnes will be exported. The proportion of export revenue will be 5 per cent by then.

VPP Progressive will spend Bt50 million next year to build a new factory in Samut Sakhon province to produce roasted and ground coffee beans for export. The new plant will start operations in 2009.

Veradech estimates the company will earn Bt135 million in revenue this year, up 15 per cent from last year.

Veradech is also a managing director of Golden Cream, operator of D'Oro coffee shops. He predicts the company will generate revenue of Bt120 million this year, up 15 per cent from last year.

Golden Cream general manager Tanapol Lertsungjamsai said the company would expand D'Oro coffee shops in office buildings, hospitals and petrol stations around the country next year but cannot be specific about the number of shops.

"The competition in the coffee-shop market nowadays does not focus on the number of shops opened, but rather on the quality of the coffee produced," he said.

D'Oro ranks second among coffee shops in petrol stations. No 1 is Cafe Amazon, which are in PTT petrol stations.

 Nalin Viboonchart

 The Nation


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