Coffee output in Vietnam on the rise

Vietnam, the world’s second largest producer, looks set to see a 7 per cent rise in output in the coming year, according to a US Department of Agriculture unit.

As a result of improved weather conditions, production will increase to 18.7 million 60 kilogramme sacks, considerably higher than the estimated 17.5 million this year, the USDA’s Foreign Agricultural Service said in its latest report.

Last year’s production levels had been poor due to heavy rainfall in Vietnam. This new prediction comes despite the country experiencing its worst drought in over a century, although the report from US Department of Agriculture staff in Hanoi said that “fortunately [it had] not caused a substantial effect on coffee production”

Vietnamese growers are reporting that most coffee trees are bearing good levels of fruit and the development of the cherries is healthy for this point in the growing season.

Vietnam’s coffee plantations cover over 530,000 hectares with officials now believing that only around 2,500 of those will be affected by damage as a result of drought.

The US Department of Agriculture also used this opportunity to voice its concerns over government-backed stockpiling in the country.

“According to contacts from the Vietnamese coffee industry, this stockpiling plan will be implemented slowly because as of yet there are no detailed guidelines… on how to implement the scheme,” the report said.

However, because the country contributes around 15% of global coffee production, many industry experts can see the potential for Vietnamese government plans to influence global coffee prices by controlling supply through stockpiling.