Vietnam coffee exporters told to stop underselling

Coffee production in Vietnam may fall 10 percent this year to under one million tons, the Vietnam Coffee and Cocoa Association said, warning exporters against undercutting each other.

Luong Van Tu, chairman of the association, said many local companies have been offering very low prices, hurting not only themselves but farmers and the whole coffee industry.

He said Vietnam now holds a 15 percent share of the global coffee output and it can affect prices on the market. However, many exporters are still trying to compete against each other, giving the advantage to buyers.

Coffee prices have increased by nearly 80 percent over the past year. Industry insiders said supply of robusta beans has declined in the world, driving prices up. – Tuoitre

Tags: Vietnam Coffee

Posted by VBN on Jan 21 2011. 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