Vietnam’s coffee export is forecast to reduce next year after hitting record highs in 2016, because of output reduction, according to Vietnam Coffee and Cocoa Association (VICOFA).
Vietnam is expected to ship over 1.8 million tons of coffee this year, the highest volume for the last many years.
The increase has been due to inventory from previous crops when prices dropped low. Export turnover might near $3.5 billion.
Next year, the coffee export volume is expected to reduce at least 20 percent over the previous crop to about 1.3 million tons because of droughts and water shortage, says VICOFA.
Output reduction will be worse as farmers have sold out their inventory.
Meanwhile coffee plants have been aging while farmers have cultivated other plants such as pepper and cocoa in coffee fields, causing low coffee output in the Central Highlands.
Long lasting rains have affected the quality of coffee beans this year.
