The 2014-15 coffee crop will see output fall by 20 percent due todrought and a large proportion of old trees with low yields, accordingto Chairman of the Vietnam Coffee and Cocoa Association (Vicofa) LuongVan Tu.
Vietnam expects to export 1.4 million tonnes of coffeeduring 2014-2015, down 200,000 tonnes from the previous crop, Tu told aconference in Ho Chi Minh City on December 5 to review its2013-2014 performance and set tasks for next year.
According tothe General Department of Customs, Vietnam remains the second largestexporter of coffee, behind only Brazil , with 1.66 million tonnesshipped during the 2013-2014 crop for 3.4 billion USD, up 17.2 percentin volume and 12.5 percent in value.
Germany was the biggest buyer, followed by the US, Spai, Belgium, Japan and Russia.
However,Tu said that raw coffee accounted for 90 percent of the exports.Companies also exported three-in-one, two-in-one, and roasted coffee,but in limited quantities.
Coffee prices were rather lowafter the last crop, requiring the industry to focus on improvingquality and developing brands to earn higher export prices, he said.
The industry has set itself a target of increasing the output ofinstant and roasted coffee to account for 25 percent of the total by2020.
Coffee consumption in the domestic market remainsmodest, at around 10 percent of the annual output, and more should bedone to boost consumption, Tu said.
He warned that Vietnamesecoffee exporters will face more severe competitions as the ASEANEconomic Community is to take shape next year and coffee prices arefluctuating due to harmful impacts of climate change.
Vicofawill ask the Ministry of Agriculture and Rural Development to buy incoffee for stockpiles in case its prices plummet, and partner with theVietnam Food Administration to issue a set of Vietnam standards forroasted and instant coffee next year.
During the 2014-2015crop, Vicofa will assist coffee farmers in re-cultivation and call formore business involvement in coffee processing, he added.
The country has 622,167ha under coffee, with 126,000ha having old trees with low yields and unreliable quality.
In the next five to 10 years, 140,000-160,000ha need to be replanted, the association said.-VNA
According tothe General Department of Customs, Vietnam remains the second largestexporter of coffee, behind only Brazil , with 1.66 million tonnesshipped during the 2013-2014 crop for 3.4 billion USD, up 17.2 percentin volume and 12.5 percent in value.
Germany was the biggest buyer, followed by the US, Spai, Belgium, Japan and Russia.
However,Tu said that raw coffee accounted for 90 percent of the exports.Companies also exported three-in-one, two-in-one, and roasted coffee,but in limited quantities.
Coffee prices were rather lowafter the last crop, requiring the industry to focus on improvingquality and developing brands to earn higher export prices, he said.
The industry has set itself a target of increasing the output ofinstant and roasted coffee to account for 25 percent of the total by2020.
Coffee consumption in the domestic market remainsmodest, at around 10 percent of the annual output, and more should bedone to boost consumption, Tu said.
He warned that Vietnamesecoffee exporters will face more severe competitions as the ASEANEconomic Community is to take shape next year and coffee prices arefluctuating due to harmful impacts of climate change.
Vicofawill ask the Ministry of Agriculture and Rural Development to buy incoffee for stockpiles in case its prices plummet, and partner with theVietnam Food Administration to issue a set of Vietnam standards forroasted and instant coffee next year.
During the 2014-2015crop, Vicofa will assist coffee farmers in re-cultivation and call formore business involvement in coffee processing, he added.
The country has 622,167ha under coffee, with 126,000ha having old trees with low yields and unreliable quality.
In the next five to 10 years, 140,000-160,000ha need to be replanted, the association said.-VNA
