Vietnam’s coffee output to drop this crop

Vietnam is estimated to see coffee output of 600,000-630,000 tons in the
2005-2006 crop ending in September, down from 750,000 tons in the previous crop
due to unfavorable weather, according to a local trade information agency on
Monday.

Vietnam’s main coffee-growing areas were hit by either prolonged droughts or
floods, which will result in smaller output and export volume this year, the
Trade Information Center under the Trade Ministry said, noting that the country
is likely to benefit from a 10-percent increase in export coffee price in 2006.

Export prices of Vietnamese robusta coffee delivered at the country’s
southern Saigon port currently stand at more than 1,210 U.S. dollars per tons,
up 6.1 percent against early this month.

The world’s coffee reserves are declining, while foreign coffee traders are
slowing down their sales to wait for higher prices, the center said.

Vietnam, the world’s second bigger coffee exporter, shipped abroad 885,000
tons of coffee worth 725 million dollars in 2005, down 9.2 percent in volume,
but up 13.1 percent in value against 2004, according to the country’s General
Statistics Office.

Source: Xinhua – http://english.people.com.cn/200601/23/eng20060123_237653.html