Coffee exports percolate in first half

The country’s energised coffee sector enjoyed significant growth to most export markets in the first six months of the year.

Belgium, the second largest consumer of Vietnamese coffee after the US, for example imported US$178.5 million worth of coffee, marking a six-fold increase over the same period last year.

During the first half of the year, 913,000 tonnes of coffee were exported from Viet Nam, earning $2 billion in turnover, according to the Ministry of Agriculture and Rural Development. The exports represented year-on-year increases of 200 per cent in value and 38.6 per cent in volume, the ministry said.

Despite the period’s record export price, domestic coffee agencies were unable to buy sufficient quantities of coffee because foreign enterprises had bought up to 70 per cent of the supply, said General Secretary of G20, the group of Vietnamese coffee producers Nguyen Nam Hai.

“The situation had a negative influence on the country’s coffee sector because the global coffee price was forecast to continue rising in the remaining months of this year while farmers would not have enough coffee to sell and foreign firms would gain the greatest benefits,” Hai said.

Inadequate financial capacity caused the problems for domestic enterprises, he said, adding that they had been forced to buy coffee from foreign businesses to honour previously signed contracts.

The Government’s policies only allowed foreign companies to invest in coffee growing, processing, preservation for export, and the transfer of advanced technology. They were not permitted to use their networks to buy coffee, the Viet Nam Coffee and Cocoa Association chairman Luong Van Tu said.

However, about 10 foreign businesses have set up agencies to purchase coffee directly from farmers in Dak Lak, Dak Nong, Lam Dong and Gia Lai in the Central Highlands.

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