|The Buon Ma Thuot Coffee and Commodity Exchange (BCCE). — Photo giacaphe
HA NOI (VNS) — The Buon Ma Thuot Coffee and Commodity Exchange (BCCE) is scheduled to start operations today and will trade in coffee.
The BCCE, formerly known as the Buon Ma Thuot Coffee Trading Centre, has a total charter capital of VND75.5 billion (US$3.5 million), including 42 per cent sourced from the People's Committee of Dak Lak Province, reported vnexpress.vn.
The exchange will trade in two products: spots and futures, for Robusta coffee and connect to global commodity exchanges, such as the Chicago Mercantile Exchange. Following Robusta coffee, BCCE plans to trade in black pepper and rubber.
Tran Thanh Hai, BCCE general director, had said last year that Viet Nam exported 1.6 million tonnes of coffee, but the export value of its coffee reached around $3.5 billion, which is less effective than other coffee-growing countries, especially Robusta coffee.
Hai said other coffee-growing countries could gain $10 billion from coffee exports each year, while Viet Nam, which accounts for about half of the world' Robusta coffee output, can only earn about $3 billion from coffee exports.
The trading of Vietnamese coffee at the BCCE will create conditions for farmers to sell directly to buyers at the London Coffee Exchange, he said. That will help Vietnamese farmers avoid being forced to sell at low prices.
In 2008, the Buon Ma Thuot Coffee Trading Centre had no efficient operation because it lacked capital and a good operational mechanism, while many farmers could not conduct transactions at the centre.
The establishment of the BCCE is expected to solve problems for commodity transactions and help seize business opportunities. Additionally, feasible deposits in cash or coffee are considered a suitable solution for small business households in the Central Highland region.
According to the General Department of Customs, Viet Nam exported 241,000 tonnes coffee, earning $511 million for the first two months of this year. The exports dropped 25.3 per cent in volume and 16.4 per cent in value against the same period of last year. — VNS