Bad weather led to a fall in coffee output in the 2014-15 crop in the domestic market, according to the Viet Nam Coffee and Cacao Association.

Workers at a coffee processing line of Viet Nam-Dutch Coffee Ltd.Co in the Central Highlands province of Dak Lak. Bad weather led to a fall in coffee output in the 2014-15 crop.

The association said coffee output in the 2014-15 crop recorded a year-on-year reduction of 20 per cent, or 22.17 bags of coffee (1 bag = 60kg), due to poor irrigation and bad weather.

Bad weather conditions are expected to continue until the early 2015-16 coffee crop, which can affect coffee cultivation and reduce the output of the next crop, the association noted.

Increase in the volume of old coffee trees will also be a reason that will affect the output in the next crop, it said.

The decrease in coffee output in the 2014-15 crop has prompted farmers to stock their coffee and wait for an increase in price, reported the Nong nghiep Viet Nam newspaper.

Therefore, coffee exports saw a reduction in the first four months to 465,000 tonnes, earning $968 million.

Coffee exports had a year-on-year plunge of 41.8 per cent in volume and 39.4 per cent in volume, according to the General Department of Customs.

Meanwhile, the export price of coffee on the physical market is $150 per tonne higher than on the international trading floor, the association said, adding that the development will affect farmers' decision whether to sell or not. 

VNS