Vicofa told a recent review conference on coffee production and export that Vietnam has shipped abroad 20 million 60-kilo bags of beans in the 2014-2015 crop, down a staggering 19.2% compared to the last crop. Meanwhile, the export price has dipped by US$300-US$400 per ton to US$1,800 per ton.
The price has slid below production cost, causing big losses for enterprises in the sector, according to Vicofa.
Moreover, drought driven by the El Nino phenomenon is forecast to exact a heavier toll on Asia this year than last year, and Vietnam’s coffee output in the next crop would be affected.
Vicofa said if the world coffee price continues going down, farmers would slash coffee plants to grow other crops like pepper and macadamia.
Nguyen Nam Hai, deputy chairman of Vicofa, said the association will continue to coordinate with the Ministry of Agriculture and Rural Development to implement Decision No. 3417/QD-TT dated August 1, 2014 on sustainable development for the coffee industry and request the State Bank of Vietnam to ask banks to provide loans for coffee purchase and replanting in the next crop.
Vicofa will help build links between traders and farmers to ensure stable production and consumption on both domestic and foreign markets. The association will also back farms to get bank loans for coffee production and replanting.