The coffee harvest in Vietnam, the biggest grower of robusta beans used by Nestle SA in instant drinks, may decline for second year because of drought in the main growing regions, according to a producers’ group.
Coffee production from Dak Lak in Vietnam, the principal growing region in the world’s largest robusta producer, may increase 5.3 percent after good weather aided flowering, according to the local government.
The coffee harvest in Vietnam, the biggest grower of robusta beans used by Nestle SA in instant drinks, may drop to an eight-year low because of drought in the main growing regions, boosting prices to the highest since 2011.
Vietnamese coffee companies are seeking government financial assistance to stockpile between 300,000 metric tons and 500,000 metric tons of the beans from the 2010-2011 crop to help boost export prices, Luong Van Tu, chairman of the Vietnam Coffee and Cocoa Association, said by telephone today.
Coffee output for the 2010-2011 crop year in Vietnam, the world’s biggest grower of robusta beans used in instant drinks, will decline about 20 percent from the previous harvest of 1.1 million metric tons as prolonged rains hurt crops, Luong Van Tu, chairman of the Vietnam Coffee & Cocoa Association, said before a conference today in Ho Chi Minh City.
Coffee-producing countries are expected to earn a record $16.5 billion from exports in the 2010 calendar year because of rising prices, even as volumes decline, the International Coffee Organization said.