Vietnam Firms Begin Stockpiling Coffee on Falling Prices
Vietnamese companies started buying coffee in the domestic market under a plan to stockpile 200,000 tons to await higher prices, the newswire Reuters reported on March 9.
Chairman of the Vietnam Coffee and Cocoa Association Luong Van Tu said that 20 leading companies will join the move, but he did not specify what prices the companies offer to buy.
The companies kicked off the plan as coffee prices kept dropping over the past weeks on both foreign and domestic markets.
On Mar 9, coffee prices dropped to VND22,600/kg from VND23,400/kg a week earlier in central highlands Dak Lak province. On London market, Vietnamese coffee was offered at US$1,200/ton, the lowest prices over the past four years.
The newspaper reported that many local farmers decided to hold beans at the low prices.
Le Van Son, head of Intimex Binh Duong Co., a unit of Vietnam Intimex JSC said that the farmers are likely holding as much as 450,000 tons, or 50% of output. (Reuters, Youth)
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