~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

[Year 1997]
[Year 1998]
[Year 1999]
[Year 2000]
[Year 2001]

Vietnam coffee haven faces uncertain future

BUON MA THUOT - Booming private coffee cultivation in Vietnam's central highland province of Daklak has brought riches to many, but the race for quick cash threatens long-term sustainability, experts have warned.
They said land use controls, better water management, lower fertiliser use and improved farming methods were urgently needed.
``Coffee growing in this area has to be better controlled,'' Frank Gerke, senior adviser on a German-financed project to improve state coffee farms in the area, told Reuters in the provincial capital Buon Ma Thuot.
``If they continue with uncontrolled growing then maybe in five years there will be a major problem with water.''
Statistics show Daklak has 172,000 hectares (425,000 acres) under coffee cultivation, up more than 90,000 hectares (222,390 acres) since 1991. Officials say the real figure could be higher although no-one knows exactly.
Daklak accounts for around 60 percent of all coffee grown in Vietnam and in calendar 1997 exported 205,000 tonnes.
Around 84 percent of coffee trees in the province belong to private smallholders with plots ranging from less than half a hectare to about 15 hectares. The balance is held by state-owned farms, officials said.
Gerke said the race to push yields higher had put most coffee trees in the province under constant stress.
Yields were high, ranging from three to seven tonnes per hectare.
But with farmers using up to a tonne of nitrogen fertiliser per hectare, cutting trees from watershed areas and relying on mono-cultivation the future might not be bright, Gerke said.
Production has boomed, but a sustained drought earlier this year has affected quality and yields in the current 1998/99 crop. Some coffee trees have died, others failed to produce and the size of beans is smaller than normal.
While coffee has brought riches to many previously poverty-stricken farmers, others have found the dream elusive and fallen heavily into debt, said Philip Riddell, a specialist working on a Danish-funded water resource project in Daklak.
``Coffee is making money for a huge amount of people yet this year it has brought abject poverty to a number of households...and we estimate that household debts worth tens of millions of dollars were rendered unserviceable,'' he said.
Riddell said farmers were not investing profits for long-term sustainability, preferring to buy consumer products or motorbikes.
Nestled close to the Cambodian border, Duc Minh commune typifies the new coffee mentality.
With a population of 11,200 people, all households grow coffee but few drink the bitter brew, a local official said.
Vietnam's farmers are able to command some of the highest farmgate coffee prices in the world, and new money in the commune has built a Catholic church, flashy houses and roads.
Local television and newspapers have daily world coffee reports, and it is common for semi-literate farmers to discuss London coffee futures.
A farmer in Duc Minh, 60 km (38 miles) southwest of Buon Ma Thuot, said while some feared the coffee bubble could burst, people were unwilling to invest in new farming methods or lower planned yields to ease stress on the trees.
``We live with coffee, we die with coffee,'' she said.
A foreign agronomist in Buon Ma Thuot said comprehensive policies and research were essential.
``The whole thing needs a systematic approach to research. ...They should slow down coffee production to sustainable levels and they probably need to end up with different models of production,'' he said.

Reuters - November 13, 1998.