Vietnamese coffee exports increase 47 per cent

Related tags International trade

Viet Nam has increased its exports of coffee on the back of
competitive pricing and high production volumes.

So far this year the country has exported 806,000 tonnes of coffee, totalling €404 million, a year-on-year increase of 47 per cent in volume and a 41 per cent in value, according to the Viet Nam Coffee-Cacao Association (VICOFA).

In 2004, the country's coffee sector showed signs of recovery as coffee prices in the world picked up after the 2000-2003 crisis.

Viet Nam's coffee products have been exported to 59 countries and territories with Germany and the US being the largest markets. Since 2000, the country has become the world's second biggest coffee exporter after Brazil and equal to Columbia, but leading in Robusta coffee exports.

VICOFA said Viet Nam has the highest coffee output in the world. However, what has held it back is the fact that its quality is not high. The sector has applied many measures to improve its products' quality and increase its competitiveness, focusing on reallocating growing areas, changing seedling and farming techniques, managing produce collection and storage, and expanding outlets.

The Central Highlands, the southeastern, the central and the northern midland regions in Viet Nam have natural conditions conducive to growing coffee.

The country's coffee acreage have developed rapidly with 13,000 ha and an output of 6,000 tonnes in 1975, and 500,000 ha and 700,000 tonnes at present. Coffee ranks second among the country's exported farm produce after rice, earning an annual export revenue of just of €400 million in 2003.

The coffee sector has selected suitable areas for growing Robusta and Arabica coffee and turned ineffective areas into other crops in order to maintain the current annual output of between 750,000-800,000 tonnes and to try and cash in on more expensive coffee categories.

According to the VICOFA, the sector has also successfully applied many scientific techniques in selecting seedlings, nursery and post harvest, which have benefited the economy and the environment.

The Vietnamese Trade Ministry plans to speed up the dissemination of information and forecasts to assist exporters, particularly coffee exporters. The ministry says it intends to also support VICOFA and coffee exporters in finding new outlets, diversifying sales channels and improving foreign trade skills for coffee exporters.

Related topics Markets Tea & coffee

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