October 19, 2013
Coffee output from the 2013/2014 harvest in Daklak, Vietnam’s largest growing province, could fall around 3 percent from the previous crop year to 400,000 tonnes, or 6.67 million bags, a provincial report said on Wednesday. Daklak accounts for about a third of output from the world’s largest robusta producer and that forecast decline in output is far below the 15 percent loss estimated for the country’s entire 2013/2014 crop by the Vietnam Coffee and Cocoa Association, an industry body.
Traders often regard the association’s figures as underestimates in an attempt to inflate export prices. Market analysts expect Vietnam’s 2013/2014 output to rise at least 10 percent to 28 million bags, versus the association’s estimate of 20 million. The report was released by the Daklak People’s Committee, the local government, which also projected the province’s coffee exports would rise 34 percent to 300,000 tonnes this crop year, the Daklak trade promotion centre said.
The coffee crop year lasts from October to September. While Daklak produces around 30 percent of Vietnam’s coffee output, its export volume of around 224,000 tonnes in the last season accounted for less than 16 percent of the country’s total shipments of 1.42 million tonnes. Many coffee export firms are based outside Daklak but they have a buying network in the province, one of the five in the Central Highlands coffee belt.
Robusta eased to 35,200 dong ($1.67) per kg on Wednesday in Daklak from 36,400-36,500 dong the previous day, in line with a loss on London’s robusta futures market, where the January contract fell 3 percent to close at $1,671 a tonne on Tuesday. The price of 35,200 dong per kg is the lowest since October 2. Traders said harvesting of the new crop has been slow due partly to recent rain and low prices, which have discouraged farmers from picking cherries. Fresh beans would arrive in bulk in November instead of late October as previously expected, traders said. The rain so far this month has not damaged the crop, a trader based in Ho Chi Minh City said.Courtesy Reuters
Published in ZaraiMedia.com