Vietnam hopes to increase profits from arabica coffee
HANOI - Vietnam will slash production of robusta coffee while at the same time
increasing output of arabica, the chairman of the Vietnam Coffee and Cocoa Association [Vicofa] told
Vietnam News Agency on February 19.
He revealed that annual output of robusta is set to come down from the current 14 million (60kg) bags to
10.5 million.
"This is rational in the light of the present oversupply and high domestic inventory and falling world demand
and prices," said Vicofa chairman Doan Trieu Nhan.
Nhan said while reducing land under coffee crop, Vietnam is hoping to grow lucrative arabica on at least a
quarter of its coffee-growing area, in an effort to up income from the crop. At present, this number stands
at barely 5 per cent.
Over the last two years, however, world prices of even high quality arabica beans have plummeted to
around 43 cents from the earlier US$1.40 per pound. The more widely produced robusta now fetches a
mere 15-16 cents.
Vietnam, the world's second largest coffee grower, which produced just 2 million bags 10 years ago, is
now the largest robusta producer, playing a key role in world coffee prices.
According to the International Coffee Organisation [ICO], world coffee production is set to reach 114
million bags in 2001-2002, of which 68 per cent would be arabica and the rest robusta.
Asia Times - February 24, 2002.
|