Viet­nam’s cof­fee grow­ers near bank­ruptcy due to record-low prices

The China Post - - LIFE GUIDE POST -

Cof­fee prices have dropped to record lows in south­ern Dong Nai province, push­ing cof­fee grow­ers and par­tic­u­larly small en­ter­prises to the verge of bank­ruptcy.

At the same, large for­eign-funded grow­ers, such as Nes­tle and Neu­mann Kaf­fee from Europe, are gain­ing ground.

Cof­fee prices have con­tin­u­ously fallen are now hov­er­ing around 36,500 dong (US$1.7) per kilo­gram, the low­est price in years.

This has led to tonnes of cof­fee from pre­vi­ous har­vests be­ing left in farm­ers’ ware­houses.

Ac­cord­ing to Dong Nai’s Depart­ment of Sta­tis­tics, cof­fee bean ex­ports fell by 63,000 tonnes in the first seven months of last year to slightly more than 134,000 tonnes. Ex­port rev­enue of al­most US$271 mil­lion was down 47 per­cent year on year.

Nguyen Van Thu di­rec­tor of G.C Food Lim­ited Com­pany in Trang Bom dis­trict said his com­pany was pro­cess­ing cof­fee to ex­port to the U.S.

Cur­rently, the price of un­pro­cessed cof­fee is at the low­est level while for­eign com­pa­nies con­tinue ex­pand­ing.

Thu said his com­pany had be­gun in­vest­ing in cof­fee pro­cess­ing with a view to ex­port­ing the fin­ished prod­uct glob­ally. In the first seven months of this year, it ex­ported 100 tonnes of cof­fee prod­ucts to the U.S. mar­ket.

It is ex­pected that by the end of the year, the com­pany will ex­port another 200 tonnes.

Re­cently, the Ger­many-based Neu­mann Kaf­fee group opened a cof­fee pro­cess­ing fac­tory in Long Thanh dis­trict, the sec­ond fa­cil­ity of the com­pany in Viet Nam. The group has 46 fac­to­ries in 28 coun­tries.

The Swiss com­pany Vol­cafe Viet­nam has just opened a pro­cess­ing plant with a ca­pac­ity of 100,000 tonnes of cof­fee prod­ucts a year.

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