Vietnam coffee prices up on global demand

FOB (free on board) price at Ho Chi Minh City port had risen to US$1,480 per ton this week, $135 higher than last month, it said.

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.

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 with Germany and the US being the largest markets.

Since 2000 it has been the world’s second biggest coffee exporter after Brazil, on a par with Columbia, and the top exporter of the Robusta variety.

Vietnam yielded 600,000 to 650,000 tons of coffee in 2005-06, down 30 percent 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.

Source: VietNamNet – Compiled by Ha Dong