Vietnam May Lack Robusta Coffee for Exports
Vietnam is forecast to incur a shortage of Robusta coffee in the coming time as domestic enterprises released a huge volume of the product for exports at unexpectedly low prices in the past few weeks.
“Just a small quantity of Robusta coffee has been left in stockpile due to massive coffee shipments, which resulted in a sharply falling price of Vietnamese coffee in global market,” said an official from the Vietnam Coffee and Cocoa Association (Vicofa).
Export prices of Vietnamese Robusta coffee have suddenly dropped by around US$90-95 to just US$1,085 per ton against price earlier this month following a sharp decrease in domestic prices.
Vietnamese coffee exporters were advised not to hurriedly sign export contacts at current prices to avoid any possible losses caused by price fluctuations in an expectation that the world price will go up shortly due to thin supplies.
The association has forecast exports from the world's top Robusta producer will fall by 22 per cent to 650,000-700,000 tons in the crop year ending September 2006. Meanwhile, the demand will be high this year, leading to a supply and demand imbalance.
Prices of Vietnamese coffee are predicted to reach US$1,880 per ton in international markets in the coming time.
Vietnam currently has around 450,000-500,000 hectares under coffee cultivation with the majority dedicated to lower-priced Robusta beans, yielding an estimated output of 767,700 tons, according to the latest government statistics.
The country is expected to ship more than 780,000 tons of coffee abroad this year. Vietnam Economic Times
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