Vicofa Suggests to Put 200,000 Tons of Coffee in Reserves
Vietnam Coffee and Cocoa Association (Vicofa) will propose that the government allocate preferential funds to purchase 200,000 tons of coffee to be put into reserves, starting in October 2009 when the new harvest begins.
The move aims to prevent foreign speculative funds from cornering the markets, the association said.
The International Coffee Association said that Vietnam has the potential to harvest a bumper crop in 2009-2010 with expected output of 16.5 million 60-kilogram coffee bags, compared to the previous crop with 16 million bags.
Vietnam Coffee Corporation also plans to spend more money upgrading the coffee growing areas.
Vietnam is now home to around 500,000 hectares of coffee trees, with over 112,000ha of old coffee trees in need of replacement. (Vietnam Economic Times)
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