HA NOI — Coffee prices has bounced back after months of strong declines, according to the Ministry of Agriculture and Rural Development.
|Coffee is dried at Buon Ho Town in the Central Highlands province of Dak Lak — VNS Photo Sy Huynh
The price of coffee beans in the Tay Nguyen (Central Highlands) province of Tay Nguyen has risen by VND200 to VND42,600/kg.
Nguyen Nam Hai, general secretary of the Viet Nam Coffee Club, attributed the price increase to limited supply of Robusta coffee from Viet Nam, Brazil and Indonesia. He also said there was growing demand for this variety of coffee in the US.
It is even claimed that falling supplies had aggravated the eurozone crisis.
Furthermore, it is expected that domestic exporters of the 2011-12 coffee crop will store 30,000 tonnes of coffee beans until the price climbs higher.
According to local exporters, the coffee price this month could reach VND100,000-VND110,000 (US$4.7-$4.8) a kilo. Viet Nam, the second biggest coffee exporter after Brazil, exported 160,000 tonnes last month – an increase of 52.8 per cent against the same period last year.
Viet Nam and Indonesia are ranked second and fourth in the world in terms of coffee production. Total production in these two countries accounted for nearly 20 per cent of the global coffee volume.
According to the Ministry of Agriculture and Rural Development, coffee exports in the first five months of this year are expected to reach 860,000 tonnes, bringing a turnover of nearly $1.8 billion – a decrease in volume and value of 7.8 per cent and 3 per cent, respectively. — VNS