Vietnamese Ministries Support Coffee Stockpile for Higher Prices

The Vietnamese Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade have officially supported the Vietnam Cocoa and Coffee Association (Vicofa)’s plan to keep 200,000 tons of coffee in stock for higher prices.

 

The Vicofa’s Chairman, Luong Van Tu, was cited as saying that under the plan, several big coffee enterprises will receive interest-free loans to buy 200,000 tons of coffee from local farmers this year, adding that the coffee will be kept in stock until its prices reach VND28,000-VND30,000/kg.

 

Currently, local farmers in central highlands Dak Lak province, the largest coffee growing area in Vietnam, are offering their beans for VND23,000-VND23,500/kg.

 

Tu said that 20 biggest coffee exporting countries in Vietnam which export 850,000 tons, or 80% of Vietnam’s total coffee export volume, have carried out outright sale method to minimize damages.

 

Vietnam has exported 256,000 tons of coffee beans in the first three months of 2009/2010 crop, down 6% against the same period of last year due to decreased output and high freight, the chairman said. (Vietnam Agriculture)