Cooperation in coffee markets: the case of Vietnam and Colombia

The purpose of this paper is to present a cross‐country study comparing Colombia and Vietnam, two of the major coffee exporting countries in the world, in terms of their infrastructures, the roles of external shocks, technology adoption at different stages of production, added value, positioning in both domestic and global markets, internationalisation patterns, marketing and branding innovations, regulatory frameworks, and policy environments. This study also explores other aspects linked to production, and marketing strategies that open niche markets such as speciality coffees, and socially‐, labour‐ and environmentally‐responsible trade. Furthermore, it identifies opportunities of cooperation and competition between these two countries.

Using value chain analysis as primary research method, this paper identifies links and dynamics in the value chains that have been developed in the coffee industry in both countries to improve competitiveness, increase sustainability, and respond to market demands.

Using value chain analysis, it was found that Colombia and Vietnam produce different types of coffee, and that both have implemented diverse strategies in order to be more competitive in domestic and foreign markets via product differentiation. These differences make explicit room for cooperation between these two countries in an international environment where fierce competition persists.

Cooperation between producing countries is an under‐researched subject. These findings will be useful both for policy makers in coffee‐producing countries and agribusiness researchers.