Export prices for coffee have shot up to US$670 a tonne, compared with US$630 in late last December, said Doan Trieu Nhan, chairman of the Vietnam Coffee and Cocoa Association. Nhan attributed the rising prices to global coffee producers cutting production this year to counter the decline in world prices. Coffee growers are expected to produce around six million tonnes this year, 15% less than 2003. Robusta coffee is trading at US$780 a tonne in London for deliveries made in March.
Coffee buying price with delivery in HCM City is around 10,300 dong a kilo an increase of 300-400 dong a kilo in the last week. Many traders are short of money to buy coffee for reserves.
According to the World Coffee Organisation, Vietnam’s coffee output expects to increase to 11.7 million bags (60 kilograms) in the 2003-2004 growing season compared with 11.2 million bags in the last season.