Coffee conference to focus on Vietnam, low prices<\/p>\n
SINGAPORE (Dow Jones): Continued weakness in world coffee
\nprices and producers' struggle to shore up prices are likely to
\nbe the dominant themes at an industry gathering starting Thursday
\nin Thailand.<\/p>\n
Vietnam, in particular, is set to take center stage as its
\nretention efforts are being closely watched by industry
\nparticipants.<\/p>\n
Asia includes the world's two biggest producers and exporters
\nof robusta coffee: Vietnam and Indonesia.<\/p>\n
\"In terms of what people will be asking, a lot will involve
\nVietnam,\" said a Singapore-based senior trader, who will be
\nattending the conference.<\/p>\n
The conference, which runs Feb. 22-23, is organized by IBC
\nAsia Ltd., and will be held in Chiang Mai, Thailand.<\/p>\n
Vietnam, where rapid expansion has made it a giant robusta
\nproducer, is set to overtake Colombia as the world's second
\nlargest coffee producer after Brazil.<\/p>\n
It is expected to finish the 2000-01 crop season with a record
\nproduction of 700,000 metric tons or more, compared with 600,000
\ntons in 1999-2000. Its crop year runs October to September.<\/p>\n
\"By the end of this year, they (Vietnam) would have exported
\nfar more coffee than Colombia,\" the trader said.<\/p>\n
The Vietnamese government last week approved a plan to retain
\n90,000 tons of coffee on top of an earlier 60,000 tons it has put
\naside as part of its contribution to a global retention plan
\naimed at lifting sagging world prices.<\/p>\n
\"In the internal market, people are feeling confident about
\nthe retention and farmers aren't selling the coffee,\" said a
\ntrader in Ho Chi Minh City.<\/p>\n
Despite the strong stand shown by many producing countries,
\nthe retention plan doesn't seem to have made any tangible impact
\non world prices and many participants remain skeptical whether it
\nwill work.<\/p>\n
Some believe that producing countries don't have enough
\ncapital to support the plan, and will start selling when cash
\nflow requirements become tight.<\/p>\n
Francis Renaud, chief representative of Volcafe Limited in
\nVietnam, is scheduled to speak on Vietnam from a commercial
\nperspective.<\/p>\n
Of interest will also be Indonesia, still struggling to
\nimplement the retention plan despite its repetitious declaration
\nof support.<\/p>\n
Derak Watson, representative of the Association of Indonesian
\nCoffee Exporters in London, will provide an update on the key
\nissues and concerns facing the coffee industry in Indonesia.<\/p>\n
Indeed, the undercurrent of the conference is likely to be the
\nimmediate problems faced by the global industry, with world
\nprices having fallen below the cost of production of many
\nproducing countries.<\/p>\n
Many growers have stopped tending to their trees completely as
\nthe effects of low prices began to be felt.<\/p>\n
Nearby robusta coffee prices on the London International
\nFinancial Futures & Options Exchange have fallen more than 30% on
\nyear to $638\/ton Monday.<\/p>\n
It's a similar scenario for the arabicas market. Nearby
\narabica coffee prices on the New York's Coffee, Sugar & Cocoa
\nExchange have fallen over 40% on year to 59.80 cents a pound
\nFriday. CSCE was closed Monday for a public holiday.<\/p>\n
\"In today's terrible price environment for robustas, lowest
\nprices ever, well inferior to production costs, it has become of
\nparamount importance for robustas producers to create gourmet
\ncoffees and to increase their income,\" said Pierre Leblache,
\npresident of ConsultAbroad Inc., who will speak at the
\nconference.<\/p>\n
The conference will also hear from Makoto Tsujimoto, director
\nof the foreign trade division at Japan-based UCC Ueshima Coffee
\nCo. Ltd. He will be speaking on industry developments and key
\ntrends in the Japanese coffee sector.<\/p>\n
Japan is Asia's biggest coffee consumer, importing about six
\nto seven million 60-kilogram bags a year. Globally, it lags only
\nthe U.S. and Germany.<\/p>\n
Jens Nielsen, an employee of Socadec S.A., who was earlier
\nscheduled to speak on \"Asian Coffee Trade,\" will be replaced by a
\ncolleague.<\/p>\n
Nielsen is still in a Laos jail after being detained in
\nconnection with unpaid bills incurred by his previous employer,
\nG.Premjee Ltd.<\/p>\n
Nielsen, who was a vice-president with Premjee's coffee unit,
\nrecently joined Socadec S.A., which appointed him as
\nrepresentative of the company operations in Vietnam.<\/p>\n
Tran Ngoc Han, a Socadec official and a former trader with
\nPremjee, will replace Nielsen as the speaker, according to IBC.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/coffee-conference-to-focus-on-vietnam-low-prices-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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