Ha Noi (VNA) – Domestic coffee prices fetched a new record of 42,000 VND per kilo (2.65 USD), up by 2,000 VND in just one week, according to the Dak Lak Tourism and Trade Department.
Last week’s price of 40,000 VND (2.50 USD) was the highest in 10 years, said experts. Traders said that the latest increase was caused by the country’s crop failure and rising petroleum prices.
However, the price is expected to increase to 45,000-50,000 VND per kilo in the near future. With an average yield of three tonnes of coffee per hectare, farmers are earning 50-70 million VND (3,100-4,400 USD) per hectare.
According to the Ministry of Agriculture and Rural Development, the country’s coffee output this year is estimated to reach 17.4 million bags (a bag is equivalent to 60 kilos), an increase of 17 percent over the previous crop, but still 20-30 percent short of demand.
According to a forecast by the International Coffee Organisation (ICO) for the 2007-08 crop, Brazil’s coffee output only reach about 33.1 million bags, a decline of 22 percent over the previous crop.
“The coffee crop failure of many countries in the southern hemisphere makes Viet Nam the largest producer in the northern hemisphere”, Doan Trieu Nhan, a consultant at the Viet Nam Coffee Association said.
The output falls by the two largest coffee exporters immediately impacted on world coffee prices.
Robusta coffee price in London rose by 5.5 percent to 2,320 USD per tonne. The price surged by 5.8 percent to 3,380 USD per tonne in the US .
The domestic export coffee price has increased between 8 to 11 percent to 2,080-2,275 USD per tonne.
Viet Nam is expected to export 800,000 tonnes of coffee this year, a fall of 300,000 tonnes from last year. Last year, the country exported 1.2 million tonnes, bringing total revenue of 1.8 billion USD, a 22 percent increase in volume and 50 percent rise in value over the previous year.-Enditem
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