RI, Vietnam to cut coffee exports<\/p>\n
Agence France-Presse, Hanoi<\/p>\n
Vietnam and Indonesia, two of the world's biggest coffee
\nproducers, pledged Thursday to regulate their exports of robusta
\nbeans to ease the global glut that has driven down prices and
\nfarmers' incomes.<\/p>\n
The memorandum of understanding (MOU) was signed in Hanoi by
\nDoan Trieu Nhan, chairman of the Vietnam Coffee and Cocoa
\nAssociation (VICOFA), and Hassan Wijaya, his counterpart at the
\nAssociation of Indonesian Coffee Exporters (AICE).<\/p>\n
It was signed on the sidelines of the three-day state visit by
\nIndonesian president Megawati Soekarnoputri, who arrived in the
\nVietnamese capital on Wednesday.<\/p>\n
The deal contained no concrete commitments but the industry
\nbodies of the two countries, which account for around 65 percent
\nof the world's robusta production, pledged to \"strengthen their
\nclose cooperation\".<\/p>\n
\"It needs further discussion about to how to implement the
\nmeasures,\" said Mansjur Tandiono, AICE vice-chairman. \"We have
\nagreed to further discussions in the near future, maybe in
\nIndonesia for more concrete measures.\"<\/p>\n
VICOFA chairman Doan Trieu Nhan said the MOU could result in
\nboth countries stockpiling robusta beans intended for export when
\nprices dropped below a certain level.<\/p>\n
\"This deal will help increase international robusta prices,\"
\nsaid Indonesia Minister of Industry and Trade Rini Soewandi who
\noversaw the signing ceremony.<\/p>\n
\"This is a very good sign because if we can improve the price
\nof coffee, which has gone down in recent years, we can improve
\nthe plight of our farmers, which is very important,\" she added.<\/p>\n
In the past decade Vietnam has gone from being barely a blip
\non the international coffee radar to the world's biggest producer
\nof robusta beans.<\/p>\n
Vietnamese coffee production leapt from around 413,600 tons in
\n1997-1998 to 900,000 tons in 2000-2001. For the 2002-2003 crop
\nyear, VICOFA has forecast output of 520,000 tons.<\/p>\n
However, the country's massive growth in production has
\nprompted rival producers to blame it for the global glut that
\ndrove down prices to three-decade lows in 2001.<\/p>\n
Market experts say Vietnam was unfairly faulted for the over-
\nsupply. They say some blame must lie with the buyers that bought
\nthe low-grade robusta beans, prompting farmers to retain their
\nproduction levels.<\/p>\n
Indonesia produces around 500,000 tons of coffee each year, of
\nwhich more than 85 percent is exported.<\/p>\n
Coffee prices have risen over the past year but have to yet
\nreach their pre-crisis levels.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-vietnam-to-cut-coffee-exports-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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