According to the US Department of Agriculture (USDA), coffee exports of Vietnam has increased mainly due to production is higher than expectation and farmers' storage coffee production.
Coffee exports of Vietnam - down 22% to 22.1 million bags in the year 2014 to 2015 - because the global coffee prices plummeted - expected to recover to 28.7 million bags in the year 2015-2016. This can be higher than the 27 million bags of the USDA forecast earlier.
After a year full of difficulties, because of facing by fierce competition and the downturn of world coffee prices in the 2014-2015, coffee exports of Vietnam was expected to recover in the 2015-2015 year, USDA said.
The new season will witness Vietnam and Robusta - the world largest coffee producing countries are emerging as a large supply of coffee after Brazil overwhelmed the majority.
USDA also predicts the hoarding goods status of Vietnamese farmers will reduce the price though - according to data from Reuters in Tuesday, 24th November reached 34200-34500 vnd/ kg (1.52 to 1.53 dollars) - still much lower than expected.
Vietnamese coffee farmers have changed somewhat expected to get the price of 40,000 VND / kg prior to sale to traders, the USDA report said.
Coffee production in the year 2015-2016 was also predicted by USDA will be higher than the previous forecast of many other organizations, up 1.9 million bags to 29.3 million - even higher than 28, 6 million bags predicted by this organization.
Monday, 23th November, Rabobank has raised production forecasts of Vietnamese coffee in the year 2015-2016 which is 1.9 million bags to 28.4 million bags.
The USDA forecast is quite contrary to statements of Coffee and Cocoa Association of Vietnam (Vicofa) when suggesting that coffee production fell by 20% from 2015 to 2016 because the dry weather and the rate of old trees barren increase as well as drag reduction of output.
In addition, the Ministry of Agriculture and Rural Development of Vietnam warned that the dry weather adversely affected 40,000 hectares of coffee on a total area of 655,000 hectares.
USDA said that "despite lower rainfall than average level in the period of flowering coffee trees in April in the highland provinces, farmers are still likely to compensate the shortfall in rainfall activities by the effective irrigation. That helps farmers save water as well as helps coffee trees have enough necessary water.
Rabobank said: "In 23th November, although the weather "very dry" during the flowering time of coffee trees, the use of efficient irrigation methods can reduce the negative impact on production".
Viet Nam office: 151 Dao Duy Anh st., Phu Nhuan dist., Ho Chi Minh city, Viet Nam
Singapore office: 316 Tanglin Road, Block 316, Singapore
Hot line: (+84) 918.104.22.168/ (+65) 83551210