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Coffee export yields up, but value down
Viet Nam exported 645,000 tonnes of coffee, earning US$963 million, in the first five months of the year, according to the Ministry of Agriculture and Rural Development.
The export yield represents an increase of 21.6 per cent on the same period last year but a reduction of 12.1 per cent in terms of export value.
The Tay Nguyen (Central Highlands) province of Dac Lac, the biggest coffee producing region in the country, exported just 125,000 tonnes of coffee in the first five months, down 33 per cent from the same period last year.
Last month, the country exported 90,000 tonnes, down 34,000 tonnes compared with April.
"Due to the world recession, not only the coffee business but also other business sectors have suffered," Luong Van Tu, Chairman of the Viet Nam Coffee and Cocoa Association, said.
Tu said, this year’s coffee crop was almost exhausted, resulting in lower yields last month but prices would rise in the later part of the year.
Tu said the current export price of coffee was about $1,560 per tonne, an increase of $110 per tonne compared with two weeks earlier. However, this price is still down by 28 per cent on the same time last year.
Due to bad weather conditions, this year’s coffee harvest is expected to be just 950,000 tonnes, down 8.6 per cent.
With an estimated average price of $1,800 per tonne, the country’s coffee export turnover this year will be worth $1.764 billion, down by 17.4 per cent.
Domestic consumption accounts for between 5 to 7 per cent of the total yield.
Viet Nam is the second largest coffee exporter in the world.
However, the domestic industry is less competitive because of higher production costs and lower quality.
The International Coffee Organisation estimates that the global coffee yield this year will also decrease.
VietNamNet, VNS
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