Vietnam's coffee exports slow in Q1 as domestic prices rise

Vietnamese farmers are in no rush to sell their coffee beans, resulting in a tight supply. - kinhtedothi.vn

HANOI (Xinhua): Vietnam's coffee exports in the first quarter this year edged down 1.6 per cent to 572,000 tonnes from a year ago, the General Statistics Office has said, adding that coffee export revenue for the same period reached US$1.3 billion, down 2.3 per cent on the year.

Vietnamese coffee prices surging this year, coupled with rising interest rates on bank loans, have made exporters refrain from building their stockpiles and reluctant to have contracts for delivery in the future on concerns about global price volatility, said Nguyen Xuan Hien, head of staff of the Vietnam Coffee-Cocoa Association (Vicofa).

Also, Vietnamese farmers are in no rush to sell their coffee beans, resulting in a tight supply, Hien added.

Last year, Vietnam exported 1.7 million tonnes of coffee, earning a record high of $3.9 billion, data from the agriculture ministry showed.

According to the Ministry of Agriculture and Rural Development, the country's coffee farming covers about 710,000 hectares. Its largest coffee-growing area in the Central Highlands accounts for about 90 per cent of the total output.

Vietnam aims to achieve an export value of $6 billion dollars by 2030, according to Vicofa.