News

Conflicting stories are coming from Vietnam about the upcoming bumper coffee season and Coffee trading in Vietnam having been frozen due to high prices and thin stocks. Asean Market reports say that the world's second-largest producer after Brazil could see a decrease in shipments for 2011 of more than 5 percent. The Vietnam Coffee and Cocoa Association (Vicofa) expects this fall and is lobbying for the establishment of a stockpile to help with continuity of supply. Viacofa is estimating exports will be significantly less than reported by the Vietnamese agriculture ministry. This is market is expereinceing increasing demand and possible decreasing supply Vicofa expect arabica exports to reach around 40,000 tonnes of the estimated 1.2 million ton export crop this year. Vietnam continues to be the biggest producer of Robusta. Vicofa's plans from last year to stockpile coffee were thwarted by increased demand and prices. Prices are up nearly 55% from last year and shipping volumes are up over 30%. Local supply conditions are tight with smaller suppliers not able to meet the demand for premium grade beans, New reports indicate the next harvest to start in October rather than the usual November due to very favourable growing conditions. Conflicting reports as to the size of the crop are confusing markets with some reporting a bumper crop to rival 2006/7 where are other are projecting 3 million less bags for a total crop of 18 million bags. Part of the difference is put down to reports of increased numbers of older trees with lower yields amounting to a quarter of the present coffee area. Vicofa notes Coffee growers have also faced a jump of 20-30 percent in production costs due to higher prices of fertiliser and diesel -- used for water pumps during the tree-watering period -- as well as high loan interest rates, the statement said.