Trouble brewing in coffee market

Coffee traders said the increase was unusual considering the 2005-06 harvest was yet to be completed.

Natural disasters in the last few months have affected coffee output, and with global demand remaining high, prices are rising.

Robusta was sold at VND10,000 to VND10,500 at the beginning of last year.

Doan Trieu Nhan, deputy director of the Vietnam Coffee-Cocoa Association (Vicofa), said the 2005-06 output would be 600,000 to 650,000 tons, a 30 percent fall caused by drought last year.

He added that floods in the US and drought in Brazil – both giant coffee producers – exacerbated the global supply shortfall.

Ngo Tan Giac, owner of the Thu Ha coffee processing company, expected Robusta prices to go up to VND20,000 or even higher later this year.

Source: VnExpress  –  Translated by Ha Viet