HCMC – Local experts predict that coffee prices in Vietnam would be stable during the 2010-2011 crop, ranging from VND24,000 to VND29,000 per kilo.
Vietnam is the second largest coffee exporter in the world, so foreign coffee traders and enterprises here will try to keep the prices low to below VND29,000 per kilo to improve their profit margins, coffee expert Doan Thien Nhan said.
Recently robusta coffee bean prices in the Central Highlands hit a two-year high of nearly VND31,000 a kilo.
Luong Van Tu, chairman of the Vietnam Coffee and Cocoa Association (Vicofa), said coffee prices have risen on the global market due to low coffee stock. The world prices may move between US$1,700-1,800 per ton within the next month, keeping coffee prices in Vietnam high as well, he said.
According to Vicofa, both Vietnam and Brazil are drought affected. If there is not enough rainfall in October, the coffee crops from both nations would be impacted.
In addition about a third of the coffee trees in Daklak, Gia Lai, Dak Nong and Lam Dong provinces produce low quality beans because they are too old, contributing to a predicted 10-20% drop in output.
The International Coffee Organization estimates the world crop would increase by 7 million 60-kilo bags against last year to 133 million bags.
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