Vietnam’s total coffee output for the 2013-14 crop is forecast to drop by 15 percent against the previous season.
With 530,000 hectares designated for coffee growing, the country produces 1.2-1.5 million tonnes of coffee a year.
Vietnam’scoffee exports from the 2012-13 crop fell in terms of both volume andvalue, with 1.4 million tonnes being exported for 3.03 billion USD,contributing 2% of GDP.
The coffee industry will also see a decline in export prices, predicts the Vietnam Coffee and Cacao Association (Vicofa).
Theassociation says adverse weather is behind the drop in production. Theimplementation of value-added tax refunds is also a cause ofdifficulties for both coffee growers and exporters.
Furthermore, the industry has faced a lack of mass production over thepast three years because 90 percent of coffee farms are small-scale withan average area of less than two hectares, hindering the application ofscience and technology from growing, harvesting to processing.
Toease difficulties for the industry, Vicofa emphasised the need offinancial support from banks. It also asked for an early launch of aVietnam coffee development fund to buy coffee for reserves. It is partof an effort to keep domestic and for-export prices stable and protectcoffee growers.
Apart from offering financial support to coffeeexporters, it is necessary to provide soft loans or investment forcoffee growers, ensuring stability of material input for production.
Coffeeis one of Vietnam’s major hard currency earners, generating jobs formillions of people as well as ensuring socio-economic development in theCentral Highlands, the country’s largest coffee growing area.-VNA
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