Lao coffee exports continue downward spiral
Lao coffee exports continue downward spiral
The volume of coffee exports from Laos has decreased continually over the past couple of years due to a slump in coffee prices on the world market.
Total coffee exports in 2014 reached 26,000 tonnes at an estimated value of US$60 million, which fell slightly to 23,000 tonnes valued at US$50 million in 2015, the Lao Coffee Association reported at its seventh congress in Champassak province last week.
By comparison, coffee exports in 2013 reached 30,000 tonnes and were valued at US$72 million, which was an increase on the 2012 figure of about 10 tonnes.
The price of Arabica coffee currently ranges from US$2,756 to US$4,198 a tonne while Robusta sells for between US$1,930 to US$2,168 a tonne, the association's Vice President, Mr Saengchan Khammountha, reported at the congress.
However, the Ministry of Agriculture and Forestry expects the number of coffee growers to remain stable.
The coffee price in Laos at present is very low compared to previous year s.
Most of the crop is exported to Chinese Taiwan, Italy, Japan, Spain, Poland, Germany, the US, France, Belgium, Sweden, Thailand and Vietnam.
Domestic and foreign businesses operating in Laos, especially in the southern provinces, have to export their products despite being affected by low prices.
To solve the problem, the association is trying to formulate a policy for promotion of the crop and developing coffee products of a higher quality.
The association is also seeking new markets to help growers sell the ir products and guarantee them a price, as well as encouraging farmers' groups in the four southern provinces, Champassak, Saravan, Xekong and Attapeu, to continue to farm the crop.
The association also plans to try to develop some areas as organic farms, said Mr Saengchan.
The government should cancel or reduce the export tax as well as supply some funds to address the crisis, Lao coffee entrepreneurs say.
To promote Lao coffee products on domestic and international markets, the association, in cooperation with various private and government organisations, held the first Lao Coffee Festival in Pakxe district, Champassak province, at the end of 2014.
Coffee is one of Laos' top income earners among all exports of agricultural products; the highest price of coffee was in 2004, when US$5,000 per tonne could be obtained for Arabica coffee while Robusta sold for US$2,500 a tonne.
Despite the fall in prices, total coffee production in Laos in 2015 increased to about 99,800 tonnes or almost double compared to the figure for 2011.
