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Home arrow Top Blog Articles arrow Coffee Articles arrow Vietnam now ranks number 1 among coffee exporters in the world
Vietnam now ranks number 1 among coffee exporters in the world PDF Print E-mail
Written by c0ff33   
Mar 23, 2013 at 04:50 PM

HANOI, Aug. 11 (Xinhua) -- At the end of July this year, Vietnam has exported 1.2 million tons of coffee, worth 2.5 billion U.S. dollars, an increase of 31.6 percent in volume and 25.4 percent in value year-on-year, making the country the number one coffee exporter in the world.

According to the Association of Coffee and Cocoa of Vietnam ( VICOFA), due to the global and domestic economic downturn, coffee processors and consumers have diverted to Robusta coffee and this is where Vietnam has an advantage because it ranks top in the world in Robusta production.

In addition, major coffee growing countries, like Brazil and Colombia, are facing unfavorable weather conditions which negatively impacts coffee production in those countries.

During the January-July period, the disparity of Robusta coffee export price in Vietnam and other coffee exporters narrowed sharply, from 250-300 U.S. dollars down to only 30-50 U.S. dollars apart.

According to the Vietnamese Ministry of Agriculture and Rural Development (MARD), coffee production in Vietnam has strongly developed since 1996 and to date it becomes the country's second largest agricultural export commodity.

Vietnamese coffee is now available in more than 80 countries and regions. The country has advantage in terms of the coffee export volume, although with cheaper export price compared with those from other countries.

Vietnam will soon harvest its 2012-2013 coffee crop. Currently, coffee price in Vietnam increased from 38,000 VND (19 U.S. dollars) in the beginning of the crop to 43,500 VND (over 20 U.S. dollars) per kilogram.

Data from VICOFA revealed that in the past three years, Vietnam ' s Arabica coffee export volume increased sharply, from 24,000 tons in 2009 to 50,000 tons in 2011. The export price also doubled from 2,313 U.S. dollars/ton in 2009 to 4,261 U.S. dollars/ton in 2011.

The export price disparity between Robusta and Arabica coffee is getting bigger. In 2011, Arabica export price reached 4,261 U.S. dollars per ton, against 2,099 U.S. dollars per ton for Robusta coffee.

MARD set a target to grow Arabica coffee on 40,000 hectares by 2020, accounting for 8 percent of the country's total coffee growing area.

However, local coffee exporters still face a lot of domestic and global challenges ahead.

According to VICOFA, the output of the coming coffee crop will decrease by 15 percent because many farms are re-planting their coffee plants. The country has now more than 120,000 hectares of land with stunted coffee plants.

Vietnam has released a master plan for coffee production up to the year 2020 and a vision up to 2030, under which total area for coffee growing will be maintained at 500,000 hectares by 2020, with an output of 2.4 tons per hectare, and 479,000 hectares with an output of 2.5 tons per hectare by 2030. At the end of 2011, the country had 571,000 hectares of land under coffee cultivation.

Total designed capacity of coffee processing is expected at 120, 000130,000 tons per year, reported the MARD.

To reach the target, domestic coffee producers and exporters would focus on diversifying their export products and at the same time meeting the demand for domestic consumption.

However, the biggest difficulty for coffee growers is access to loans with high interest rate.

In the world market, Vietnam's processed coffee products find it difficult to enter the developed countries, so the country mostly exports grain coffee with lower price.

Source

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