Vietnamese coffee export prices have risen sharply following fears of a poor crop in Brazil, the world’s largest coffee supplier, according to the Vietnam Coffee Cacao Association (Vicofa).
The association said FOB (free on board) price at Ho Chi Minh City port rose to US$1,480 per ton this week, $135 higher than last month.
Robusta beans in the coffee-growing central highlands regions, including Lam Dong and Dak Lak, are going for VND21,700 ($1.3) per kilogram, an increase of VND1,500 since last month.
Traders have forecast further rises in coffee prices late this month, saying that farmers would release more coffee for sales to seek money for spending during the upcoming Lunar New Year.
Brazil estimated coffee output to decrease by up to a fourth, to 35.8 million bags (of 60 kg each), in 2007-08.
Vietnam’s coffee products are exported to 59 countries and territories, Germany and the US being the largest markets.
The country is the world’s second biggest coffee exporter after Brazil, on par with Columbia, and the top exporter of the Robusta variety since 2000.
Vietnam yielded around 600,000-650,000 tons of coffee in 2005-2006, down 30 per cent on last year’s drought, said the association. Last year its exports crossed the $1 billion mark for the first time.
The association has proposed the government and relevant offices develop dedicated coffee growing areas to stabilize output [ideally 750,000 tons per year], and maintain coffee quality as well.
Local farmers and enterprises should join hands to grow and process coffee on larger scale by employing more advanced equipment and technologies, the association said, noting that many coffee exporters in Vietnam are weak in terms of finance, trade expertise, and information analysis capability.
(Vietnam & World Economy, VietnamNet)
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