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Coffee prices drop to nine-month low
The prices of exported coffee this week fell to 1,489 USD per tonne, the lowest for the last nine months, according to the Vietnam Coffee and Cocoa Association.
The price marked a loss of 220 USD per tonne compared with October, and is down 520 USD over September.
The drop in coffee prices over the last few months was unpreprecedented, said Luong Van Tu, chairman of the association.
Export output has also decreased. In August, exports to Germany , the US and Italy fell by 28 percent, 48 percent and 22 percent, respectively.
The fall in export demand is being blamed on the global recession.
Coffee farmers in southern provinces are set to harvest bumper crops this season, but are also bracing for big drops in profits.
Coffee plantations cover over 178,000 ha in Dac Lac Province . This season farmers expect to reap 400,000 tonnes of coffee, 50,000 tonnes more than the last crop.
Their crops may be booming but the farmers themselves expect to lose about 14-16 million VND per tonne. The last crop lost Dac Lac farmers a total 64 trillion VND (400 million USD).
Coffee growers in Dak Nong province face similarly hard times. This year, they harvested 132,000 tonnes of coffee, up 15,000 tonnes over last season. But the profits they made were not enough to cover costs.
To protect local growers, Dak Lak People’s Committee has warned farmers not to harvest coffee when it is unripe, because it will be unfit for export. Many farmers harvest crops early to save money on hired help.
Central Highlands provinces are now warning local people to restrain massive sales to avoid surplus crops.
VNA
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