Vietnam may cut robustas, eyes arabicas: Sources<\/p>\n
SINGAPORE (Reuters): Vietnam, the world's largest robusta
\ncoffee producer, may destroy some plantations to reduce
\noversupply and promote the aromatic and higher quality arabica
\nvariety, industry sources said on Thursday.<\/p>\n
Indonesia is also seeking to boost arabica output, but so far
\nit is growing at a snail's pace because of high maintenance
\ncosts, soil, altitude and climate requirements.<\/p>\n
Both Vietnam and Indonesia have some mountainous areas
\nsuitable for arabicas. Robusta is usually grown in very hot and
\nhumid climates, while Arabicas are grown in cooler climates
\neither further from the equator or at higher altitudes.<\/p>\n
"There's too much robusta production," Doan Trieu Nhan,
\nchairman of state-affiliated Vietnam Coffee and Cocoa Association
\n(Vicofa), told Reuters by telephone.<\/p>\n
"According to our program, we have to change the ratio between
\nrobusta and arabica areas. Maybe, we have to decrease (or)
\ndestroy some robusta plantations," he added.<\/p>\n
Nhan said the Vietnamese government had agreed with Vicofa's
\nproposal to cut robusta plantation areas to 300,000-400,000
\nhectares from more than 450,000 hectares.<\/p>\n
"I have to decrease (plantation areas)...we have to grow new
\narabica plantations," said Nhan, adding that plantations under
\narabica in Vietnam totaled only 20,000 hectares.<\/p>\n
Nhan said arabica plantations could be expanded to some
\n100,000 hectares in the near future.<\/p>\n
Online analyst Commodityexpert.com urged Vietnam and Brazil
\nthis week to lead a global effort to produce less coffee as
\nLondon futures touched a 30-year low on Monday at US$516 a ton
\n(basis September).<\/p>\n
Vietnam has been widely blamed by the coffee world for
\nexpanding output and flooding the market over the past two years.<\/p>\n
But the country's 2001\/2002 coffee crop output is forecast to
\ndrop between 20 and 30 percent from some 840,000 tons in
\n2000\/2001 due to lower use of fertilizer. Industry sources said
\narabicas now accounted for about 8,000 tons a year.<\/p>\n
Vicofa's Nhan said a reduction in robusta plantation areas
\nwould surely cut production, but he gave no details.<\/p>\n
Vicofa said earlier that Vietnam, with a population of around
\n70 million, also aimed to increase internal consumption to one kg
\nper capita annually from just 0.2-0.3 kg currently in an effort
\nto restructure its coffee industry.<\/p>\n
Indonesia<\/p>\n
Traders in Indonesia said the country planned to boost arabica
\noutput to some 35 percent of its total production in the coming
\nyears from about 12 percent now, but high growing costs and
\ndifficulties in finding suitable areas restricted growth.<\/p>\n
Indonesia's coffee production is expected to reach 340,000
\ntons in 2000\/2001 from 380,000 tons in 1999\/2000 due to bad
\nweather.<\/p>\n
Some traders in Indonesia said arabica farmers managed to
\ncollect money even though the aromatic variety was also suffering
\nfrom a glut in supply.<\/p>\n
"There are plenty of arabica grades and each grade has
\ndifferent prices. So I guess, there's always a benefit to grow
\narabica," said one trader in Medan, on Sumatra.<\/p>\n
Robusta coffee ex Lampung on Sumatra only fetched up to Rp
\n3,200 ($0.33) a kg compared with Java Arabica, which was offered
\nat up to Rp 14,500 ($1.43) a kg.<\/p>\n
Mandheling Arabica, also from Sumatra, was around Rp 13,900
\n($1.42) a kg.<\/p>",
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"sponsor": "Okusi Associates",
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