Coffee price goes off the boil
Coffee price goes off the boil
As the price of coffee tumbled from about 4, 800 kip (US$6) to 2,400 kip (US$3) per kilogramme on world markets this month, Lao growers were trying to assess the extent of their losses.
The market price for green coffee beans dropped by almost half, General Manager of the Bolaven Plateau Coffee Producer Cooperative, Mr Chansamone Lormany, told Vientiane Times yesterday.
The slump in the world market meant the price of coffee produced in Laos fell from 4,000 kip to 3,200 kip per kilogramme, Mr Chansamone said.
He expected the price would decrease further in the coming months due to an increased supply of coffee on the world market.
Brazil and Columbia are the world's main markets. From September to October Brazilian coffee growers suffered a drought and supply failed to meet demand.
This meant other countries had to boost their production levels to supply the market. At the same time, the rains began in Brazil and coffee yields increased, while Columbia also produced a good crop as there were no insect infestations, Mr Chansamone explained.
These factors combined led to an oversupply of coffee and so the price plummeted.
Mr Chansmone said he was concerned that some Lao growers had not been able to sell their crop and that middlemen would take advantage of this and beat them down on price.
Growers who are members of the cooperative need not worry that they would be at a disadvantage, he stressed.
But some growers might not get a good price for their crop because they did not apply the right techniques just before harvesting the beans, he added.
Every year, coffee yields are affected by insect damage, especially weevils. This is a recurring problem and most farmers have no means of protecting their crop from weevils.
Mr Chansamone said the government and sectors responsible should do more to help growers boost their yields and produce a good quality crop.
Coffee is one of Laos' most important commercial crops and a significant source of income for the country. In certain areas it is the mainstay of rural households and helps to raise families out of poverty.
In fiscal year 2011-2012, Laos exported total 20,000 tonnes of coffee beans worth US$66 million. In 2012-2013 this increased to more than 27,000 tonnes, worth US$67 million. This year's exports are expected to total about US$70 million.
Farmers are currently growing about 70,000 hectares of coffee and the government hopes this will expand to 100,000 hectares by 2025, Mr Chansamone said.
vientiane times
