Time for instant coffee

A GROWER and manufacturer of coffee in Cambodia is determined to showcase its products in the global stage, yes, even as the coffee industry faces challenges.

“The CaFé Mondulkiri brand is marketed based on quality,” claims Orn Chanthy, director of Coffee MK Mondulkiri Company. “Despite strong competition, customers recognize sooner or later that low-priced products are often of inferior quality and ultimately choose our brand. We farm and meticulously develop our products.”

Mrs. Orn says that counterfeit coffee hurts the market – and the company – since there are those that misleadingly use the name Mondulkiri, which is a famous coffee-growing province in northeastern Cambodia.

A vision for the locals

The dream of familiarizing Cambodians with good quality locally produced coffee spurred the founding of Coffee MK Mondulkiri Company. The owners realized that although the country is cultivating coffee, no local company is into manufacturing and retailing. After many years of experimenting with coffee roasting, the decision to formally enter the crowded coffee market came in 2008.

Under the CaFé Mondulkiri brand, roasted Arabica and Robusta beans and the Weasel Arabica and Robusta were initially launched.

The Coffee MK Mondulkiri Company owns three farms, which are all located in Sen Monorom, Mondulkiri. The area, which lies about 800 meters above sea level, is the country’s traditional coffee-growing region because of its cool weather and rich red soil. The Arabica coffee plant is historically grown only in Mondulkiri province and the company is the only farm in Cambodia that grows Arabica. Robusta coffee is grown in Pailin, Kampong Cham, Mondulkiri and Ratanakkiri.

The company has 50 hectares dedicated to growing Arabica coffee and 200 hectares designated to producing Robusta coffee. Another 100 hectares are available for expansion. Currently, it has over 50 personnel working in the farms and its five-hectare factory.

At Coffee MK Mondulkiri’s farms, 50 hectares are dedicated to growing Arabica coffee, 200 for Robusta coffee, and another 100 hectares for expansion (Photo: MK Mondulkiri Coffee)

Competing in the instant coffee space

Although competing with more established global and regional instant coffee brands was a daunting task, the company bravely forayed into the market when it launched in 2012 the CaFé Mondulkiri 3-in-1 instant coffee in three flavors, namely French Vanilla, Irish Cream and Original.

For its aromatic quality, only 100 percent Arabica beans are used to manufacture the company’s instant coffee products.

“The technology on how to prepare and mix the instant coffee was taught to us by an Australian company,” says Nun Dima, manager at Coffee MK Mondulkiri Company. “It’s a bit expensive to produce our instant coffee products because we have to import the cream and milk powder and the flavors from Australia, New Zealand and Singapore. Presently, Cambodia doesn’t manufacture those ingredients.”

“Although our products are priced higher as a result, I can say that compared to others in the market, and based on consumer feedback, our instant coffee tastes superior,” claims Mr Nun.

In 2012, Coffee MK Mondulkiri came out with its first instant coffee products in popular flavors: Original, Irish Cream and French Vanilla (Photo: MK Mondulkiri Coffee)

Enjoyed in many countries

Instant coffee contributes 10 percent to the company’s total sales volume, but production and sales for this product are expected to grow once the company decides on investing in modern equipment. Talks are ongoing with a Chinese manufacturer for the purchase of the latest machinery.

The CaFé Mondulkiri 3-in-1 instant coffee is currently exported only to China, particularly to Nanning, Guangxi Province. The company also showcases its products at the China-ASEAN Plaza located in Nanning, which is a platform for trade promotions between China and the 10 ASEAN-member countries.

“The company exports 20 tons of instant coffee to Nanning annually and we are definitely looking to expand in other Chinese provinces,” says Mr Nun.

Twice a year, the company exports about 40 to 80 tons of roasted coffee products to Russia, which is also its biggest market. According to Mr Nun, Russians find Mondulkiri coffee delicious and cheaper compared to those from other countries.

Aside from Russia, the company ships coffee to Austria, Italy, USA, Korea, Japan and Thailand. In the home market, Siem Reap, Battambang and Sihanoukville together account for 70 percent of sales volume, Phnom Penh takes 20 percent, and the remainder goes to other provinces.

Modernizing production

Despite the current condition in the local coffee industry, the Coffee MK Mondulkiri Company remains bullish and has plans to invest in machinery to increase production and meet expected overseas demand.

“We are now discussing with PROBAT, a supplier of coffee machines and control solutions based in Germany about buying a grinder and two roasters,” says Mr. Nun. “The modernization will also include control systems, making the roasting process fully automated. Total investments earmarked for the latest machinery is estimated at US$ 1.2 million. We will also expand our factory to house the machines. Also in the pipeline is buying a machine to manufacture ready-to-drink coffee.”

Although the company ensures the safety of their products by sending samples for testing to a laboratory under the Ministry of Industry and Handicraft, they will start working towards HACCP certification next year.

But one of the toughest setbacks for Mondulkiri coffee is the spread of counterfeit versions. 

“We need government’s assistance in preventing the proliferation of coffee products that claim to come from Mondulkiri,” stresses Mr Nun. “Harsh sanctions must be put in place if they are found to be misrepresenting Mondulkiri coffee. If the campaign is successful then we can aggressively promote one of Cambodia’s best products in the international market.”