Vietnam expected to gain a record high of 2.4 billion USD in coffeeexports this year, 58 percent higher than last year, said the VietnamCoffee and Cacao Association.
The sharp increase in export valuewas due to a surge in the average export price, rising from 1,368 USDper tonne last year to 2,134 USD per tonne this year, the associationsaid.
The export volume of coffee this year was estimated to reach 1.3 million tonnes.
However, the coffee industry had faced many challenges during this crop, the association said.
Many processing plants had seen a moderate output due to a lack of raw material, high interest rates and low profits.
Localcoffee enterprises have had to compete with foreign rivals to purchasecoffee beans for processing, said Nguyen Nam Hai, general secretary ofthe Club of Coffee Exporters.
Foreign firms purchased 50 percentof this year’s crop while local enterprises struggled to gain access tobank loans to purchase coffee beans, the association said.
Foreign firms were also willing to pay a high price so local farmers were giving them priority.
Inthe long term, this could be bad news for the domestic coffee industry,because foreign firms could monopolise the market, Hai said.
The cost of coffee on the domestic market has fallen to 39.2 million VND per tonne from 44 million VND at the end of October.
LuongVan Tu, a coffee industry expert, said the price was unlikely to fallany further because 20 leading Vietnamese coffee exporters planned topurchase 300,000 tonnes of stock to bolster prices.
Theassociation reported the country exported 1.1 million tonnes of coffeein the first 11 months of the year, earning 2.3 billion USD. Key exportmarkets for local coffee included the US, Germany and Belgium. /.
The sharp increase in export valuewas due to a surge in the average export price, rising from 1,368 USDper tonne last year to 2,134 USD per tonne this year, the associationsaid.
The export volume of coffee this year was estimated to reach 1.3 million tonnes.
However, the coffee industry had faced many challenges during this crop, the association said.
Many processing plants had seen a moderate output due to a lack of raw material, high interest rates and low profits.
Localcoffee enterprises have had to compete with foreign rivals to purchasecoffee beans for processing, said Nguyen Nam Hai, general secretary ofthe Club of Coffee Exporters.
Foreign firms purchased 50 percentof this year’s crop while local enterprises struggled to gain access tobank loans to purchase coffee beans, the association said.
Foreign firms were also willing to pay a high price so local farmers were giving them priority.
Inthe long term, this could be bad news for the domestic coffee industry,because foreign firms could monopolise the market, Hai said.
The cost of coffee on the domestic market has fallen to 39.2 million VND per tonne from 44 million VND at the end of October.
LuongVan Tu, a coffee industry expert, said the price was unlikely to fallany further because 20 leading Vietnamese coffee exporters planned topurchase 300,000 tonnes of stock to bolster prices.
Theassociation reported the country exported 1.1 million tonnes of coffeein the first 11 months of the year, earning 2.3 billion USD. Key exportmarkets for local coffee included the US, Germany and Belgium. /.
