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VIETNAM – Vicofa sees output down by 20 percent in 2014/15

Vietnam

Vietnam’s coffee output will be 20% lower this year due to drought and a ageing coffee trees, according to Chairman of the Vietnam Coffee and Cocoa Association (Vicofa) Luong Van Tu.

Vietnam expects to export 1.4 million tonnes of coffee during 2014/15, down 200,000 tonnes from the previous crop, Tu told a conference in Ho Chi Minh City on December 5 to review its 2013-2014 performance and set tasks for next year.

The country has 622,167ha under coffee, with 126,000ha having old trees with low yields and unreliable quality.

In the next five to 10 years, 140,000-160,000ha need to be replanted, the association said.

Most part of estimates see production more or less in line or slightly below last year’s record harvest.

However, it should be noted that Volcafe, a unit of commodities trader ED&F Man Holdings Ltd., has recently cut its estimate for Vietnam’s crop to 27.4 million bags from a previous forecast of 28.5 million bags.

Vicofa will ask the Ministry of Agriculture and Rural Development to buy in coffee for stockpiles in case its prices plummet, and partner with the Vietnam Food Administration to issue a set of Vietnam standards for roasted and instant coffee next year.

During the 2014-2015 crop, Vicofa will assist coffee farmers in re-cultivation and call for more business involvement in coffee processing, he added.