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Coffee Exports May Peak at US$1.5Bln in 06-07 Crop
30 | 06 | 2007
Vietnam is likely to export 900,000 tons of coffee during the 2006-2007 crop year ending next September, fetching US$1.5 billion, the highest earning from the commodity so far, local experts predicted.
Expected earnings are US$400 million higher than that of the previous crop, said Van Thanh Huy, chairman of Vietnam Coffee and Cocoa Association (Vicofa).
Huy also estimated coffee exports from October 2006 through May 2007 have reached 700,000 tons, gaining more than US$900 million, backed by high prices in deals between September 2006 and March 2007.
Export prices of Vietnamese coffee have stood at high level of around US$1,400-1,600 per ton over recent months, thanks to thin global supply resulting from coffee crop failure in Brazil, the world’s largest coffee supplier.
“Earnings from coffee shipments will increase by tens million US dollars per crop if more proper tax polices and coffee quality improvement programs are further facilitated,” said the Vicofa chairman.
Vietnam is currently the world’s biggest exporter of Robusta coffee, widely used to make instant coffee. Its coffee products are exported to 59 countries and territories; Germany, the US, Singapore and Japan being the largest markets.
The association has proposed the government and relevant offices develop dedicated coffee growing areas to stabilize output, ideally at 750,000 tons a year, and maintain coffee quality as well.
Local farmers and enterprises should join hands to grow and process coffee on a larger scale, employing more advanced equipment and technologies, the association said, noting that many of Vietnam’s coffee exporters are weak in finance, trade expertise, and information analysis capability.
The International Coffee Organization executive director Nestor Osorio said May 16 that Vietnamese production in the October 2007 to September 2008 crop would be similar to the 15.5 million 60-kilo bags estimated for the 2006-2007 crop


Vietnam Bussiness Forum
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