VietNamNet Bridge – The Buon Ma Thuot coffee and commodity exchange company (BCCE) opened for business on March 10.

BCCE was converted from the Buon Ma Thuot coffee trading center, with charter capital of VND75.5 billion (nearly $4 million). Forty-two percent of the BCCE is owned by the authorities of Dak Lak province.

BCCE is linked with major commodity exchanges in the world, including Chicago Mercantile Exchange - CME. Along with Robusta beans, BCCE will trade black pepper and rubber.

Tran Thanh Hai, BCCE general director, said, last year Vietnam exported 1.6 million tons of coffee, earning a turnover of over $3.5 billion only, far less than other coffee-growing countries, especially Robusta-growing nations.

Hai said international Robusta growers obtained about $10 billion per year. Vietnam, accounted for nearly 50% of the world's Robusta coffee exports, earning $3 billion.

"Making transactions through the BCCE, coffee will be bought from farmers and sold directly to the London coffee exchanges. Thus, Vietnamese coffee farmers will not suffer extortion," Hai said.

The Ban Me Thuot Coffee Trading Center was founded in 2008 but due to lack of funds and mechanisms, many coffee growers could not have access to commodity exchange activities. The establishment of BCCE is expected to deal with these matters.

In addition, the method of the Center is considered to be consistent with the characteristics of 85% of household businesses in the Central Highlands.

CBOT commodity exchange opened in the US in 1848); in Malaysia (1980), in China (1988), and in Thailand (1999).

S. Tung