Vietnam Largest Coffee Grower Asks for Fee Cut to Boost Exports
Vietnam’s central highlands provincial authorities of Dak Lak are proposing the Ministry of Finance and the Vietnam Coffee and Cocoa Association (Vicofa) to reduce coffee export fee to 20 U.S. cents/ton from current 50 U.S. cents.
The move is aimed to help boost overseas coffee shipments among local exporters.
In the first four months of this year, Dak Lak province-based enterprises reportedly sold abroad only 125,000 tons of coffee worth US$192 million, down over 30 per cent on-year.
Consecutive falls of coffee prices in the world market to only US$1,436/ton were blamed for the dropping revenues triggered by shrinking demand, which pulled domestic coffee prices down to VND23,000/ton, compared with VND34,000/ton last year.
Dak Lak is one of the biggest coffee growing provinces in Vietnam with more than 182,000 hectares. Of which 173,000 hectares are harvestable with annual output of 400,000-440,000 tons.
The province planned to keep the area stable at 140,000 hectares in 2015 with output of 400,000 tons. (Youth)
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