HANOI (Commodity Online) : With the coffee prices in domestic market surging, exporters in Vietnam are finding it difficult to hoard coffee for exports.
Domestic robusta coffee climbed by 7% to 39.5-39.6 million dong ($2,026-$2,031) a ton Tuesday. The level is close to the pre-crisis price mark. (In early March 2008, the figure was at 41 million dong a ton).
Vietnam is the largest exporter of robusta coffee in the world.
The country is having more than 150 coffee exporters, but 130 of them control just 20% of the coffee exports with 20 others controlling a whopping 80%. The latter group is reliable even as the former group faces risks of delays and default.
As per statistics, of the 18.3-million-bag for 2010-2011 crop, 10 million bags have been sold and 7.165 million bags exported between October 2010 and January 2011.
Roughly, 2.8 million bags may get delayed as prices climb. Vietnam is only second to Brazil in coffee production.
Meanwhile, Brazil is expected to come out with 21% less crop output this year.
Monday, February 7, 2011
Domestic coffee surge may pose risk for Vietnamese coffee export
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