Members of the Vietnam Coffee-Cocoa Association (Vicofa) will have to pay US$2 for every tonne of coffee they export as of October this year.
At a recent meeting with the Ministry of Agriculture and Rural Development (MARD), Vicofa Chairman Luong Van Tu said that the Association expects to receive at least US$1 million from the 600,000 tonnes of coffee exported by its members every year.
But the main question is how effectively the money will be used to support exporters when the coffee prices keep dropping sharply.
Tu suggested that 50-70 percent of the funds should be used in growing coffee, 30 percent in stockpiling products and the rest in promoting trade.
If there is no reinvestment in coffee production, Vietnam will lose its current status as the world's biggest producer and exporter of coffee and fall to fourth or fifth place, he warned.
The plan would have taken effect sine January 1, 2012 but it was then cancelled due to strong opposition from Vicofa members.
They claimed that many businesses were in a fix and going to declare bankruptcy.
They argued that there would be unfair treatment as the fee payment did not apply to foreign traders, who purchase nearly 50 percent of the country’s total coffee volume while enjoying many advantages such as rich capital sources, lower loan interest rates and a much wider market.
In the meantime, the MARD and the Ministry of Industry and Trade have adopted stricter export restrictions.
To qualify as an official exporter, a domestic business has to show that it has been processing and exporting coffee for two consecutive years, and has shipped a minimum of 5,000 tonnes each year.
Most small and medium sized enterprises in Vietnam considered these requirements unrealistic.
The Buon Ma Thuot Coffee Association said 80 percent of their member businesses are independent and they cannot meet the condition for coffee shipments.
In addition, the time required for processing and exporting coffee makes it difficult even for large businesses to operate well.
As more than 150 businesses now only focus on exporting coffee instead of producing it, it is urgent to apply compulsory conditions for them to refrain from competing unhealthily and co-ordinate in stabilizing the coffee industry.
VOV
Vietnamese
