Vietnam and RI doubt coffee move<\/p>\n
HANOI (Reuters): Vietnam, the world's biggest producer of
\nrobusta coffee, raised doubts on Wednesday about the
\neffectiveness of a proposal to cut exports of low-quality coffee
\nby five percent in an effort to boost prices.<\/p>\n
A senior official of the Vietnam Coffee and Cocoa Association
\n(Vicofa) said Vietnam would support the proposal, but it would
\ntake some time to convince farmers.<\/p>\n
The Association of Coffee Producing Countries (ACPC) plans to
\nvote next week on the plan, which would follow a failing
\nretention scheme in which it called for a withdrawal of 20
\npercent of exports from the oversupplied market.<\/p>\n
"If the plan to retain 20 percent doesn't work, then this five
\npercent plan will go to nowhere," said a senior Vicofa official.
\n"No one wants to buy low-quality beans anyway given current low
\nworld prices."<\/p>\n
Indonesian coffee exporters have strongly rejected the ACPC
\nproposal and said it would only harm robusta producers such as
\nVietnam and Indonesia as robusta was considered lower quality
\nthan pricey arabica beans.<\/p>\n
The Vietnamese official said most low-quality coffee in
\nVietnam was produced by private farmers, who would need to be
\npersuaded not to release the beans onto the market.<\/p>\n
"We would support the ACPC decision, but it will take time to
\nconvince farmers," he said.<\/p>\n
Although Vietnam is not a member of ACPC, it has retained
\n150,000 tons of beans, or nearly 20 percent of its 2000\/2001
\ncrop's output, to assist the body's efforts to boost prices.<\/p>\n
"There's no problem if we have to keep low-quality beans in
\nwarehouses," said a state exporter from the coffee-producing
\nprovince Daklak. "Low quality coffee has its own price, and it
\ncan wait."<\/p>\n
Vietnam has estimated its 2000\/2001 crop output at 800,000
\ntons. It usually ships about 95 percent of production.<\/p>",
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