Vicofa may not purchase coffee for storage

Vietnam only supplies 14 percent of the world’s coffee demand so the country could not control the global coffee price, the president of Vietnam Cocoa and Coffee Association (Vicofa), Luong Van Tu told Saigon Economic Times Online yesterday.

The plan of purchasing 200,000 tonnes of coffee for storage may bankrupt because till this time, eight appointed companies [Vinacafe, Northern Food Co, Intimex Co, Tin Nghia Co, Thai Hoa Co, Petec Co, Simexco and Inexim Dak Lak] all have consolidated only 4,000-5,000 tonnes of planned 200,000 tonnes. Even one company has not bought any tonne of coffee after prime minister released decision on the coffee storage because all eight companies rely on capital disbursement of Agribank.

Before decision, the coffee price on the domestic market stood at 23,000 dong per kilogram, which now ranges between 24,500 and 25,000 dong per kilo.

TBKTVN

Tags: Vietnam agriculture, Vietnam Coffee

Posted by VBN on Jun 4 2010. Filed under Agriculture. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry