vtn exports growing strong

Vietnam’s rice exports to increase sharply this year
Businesses in the Vietnam Food Association have signed contracts to export 2.6 million tonnes of rice and the country’s rice exports are expected to increase sharply by the end of the year.

The Association’s Chairman, Truong Thanh Phong, said the world’s demand for rice could rise by 6 percent compared to the previous year.
The Philippines and Africa are predicted to be main markets for Vietnam’s rice in the first 6 months this year.
At present, Vietnam’s low-grade rice is facing serious competition from Myanmar, which is planning to export 1.5 million tonnes of rice at US$160 per tonne lower than the price of Vietnamese rice.In addition, India which greatly influences the global supply and demand of rice, currently has no demand for imported rice because its own rice reserves remain full

Vietnam rubber exports to rise 3 pct in 2010


* Higher forecast reflects pace of economic recovery in China
* Thai rubber prices recently hit highest in over 50 years
* Rubber-growing area to expand due to high prices, demand (Adds output, consumption, quotes)
HANOI, Jan 22 - Vietnam expects to increase rubber exports by 3.3 percent to 750,000 tonnes this year, betting on an economic recovery in its main markets, including top buyer China, an industry official said on Friday.
Vietnam's export projection is small compared with the 2.8 million tonnes forecast this year by Thailand, the world's top exporter, where rubber prices are at their highest in over half a century.
"The higher export target is based on a recovery in importing markets like China and also other countries such as India and Malaysia," Tran Thi Thuy Hoa, general secretary of the Vietnam Rubber Association, told Reuters in an interview.
China's economy is likely to grow faster in 2010 than previously forecast, at a rate of 9.5 percent, according to a Reuters poll.
China bought 67 percent of Vietnam's rubber exports last year.
In total, Vietnam, the world's fourth-largest exporter after Thailand, Indonesia and Malaysia, shipped 726,000 tonnes in 2009, up 10.3 percent from 2008, government data shows.
Other traditional buyers of Vietnamese rubber are Japan, Russia, South Korea and the United States.
The association has revised up its export projection for 2010 from the 700,00 tonnes seen last November, given an expected rise in output and gains this month on regional rubber markets, suggesting demand remained strong.
RISING OUTPUT
Vietnam's dry latex output is expected to rise 6.4 percent from 2009 to 770,000 tonnes, but export prices could be strong, Hoa said by telephone from Ho Chi Minh City.
Vietnam's export grade SVR L rose 1.8 percent to $3,045 a tonne, free on board Saigon Port, on Wednesday from $2,990 a tonne a week ago. Vietnamese rubber prices have risen 11.5 percent so far this year.
However, Tokyo's June rubber contract settled 13.3 yen lower at 289.3 yen on Friday, well below a 16-month high of 306 yen struck a week earlier as commodity markets reacted to proposed U.S. government restrictions on banks.
Hoa said Vietnam planned to import 130,000 tonnes of rubber in 2010 for processing and re-export and also to use at home as domestic demand could rise 16.7 percent to 140,000 tonnes.
Last year some 144,200 tonnes was imported.
"With higher prices expected this year, we anticipate the rubber-growing area will also be expanded quickly," Hoa said.
The Southeast Asian country could expand its rubber area to 715,000 hectares by the year end, from 674,000 hectares last year, she said.
Most new plantations last year were in the Central Highlands coffee belt, industry reports show, but Vietnamese companies are also growing rubber in Cambodia and Laos.

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INDIA IS renowned for its shade grown coffee unlike Brazil and Vietnam where Arabica and Robusta varieties are grown – the reason why it is priced about 20 per cent higher than the Central American variety. It is the only country where coffee is grown in shade on an area of 2.92 hectares and has very mild exotic taste and refined aroma. It has created a niche for itself in spite of sharing only four per cent of the world production. However, the high prices have led to a setback in the exports.

Brazil accounts for the major production of coffee in the world with it sharing one third of the pie. It produces Arabica coffee on a large scale but faces fluctuations in output. For instance, in 2006–2007 (October–September), Brazil’s production of coffee was 42.5 million bags (of 60 kg each). It fell to around 31.7 million bags in 2007-2008.

Vietnam is the leading producer of Robusta coffee. It produced 17.7 million bags in 2007-2008. Columbia produces Arabica coffee. Its annual production is around 13 million bags.

Robusta coffee has seen a rise in demand with coffee being the second largest traded commodity on the world after crude oil. The world coffee consumption has increased significantly from 109.84 million bags in 2002 to 120.11 million bags in 2006. During this period coffee consumption in India increased from 68, 000 tones to 82,000 tones.

Global coffee consumption for 2007, was estimated at around 123 million bags, up 2.5 per cent over previous year. India’s consumption was pegged at 1.33 million bags.

Global coffee production in the crop year 2006-2007, increased by 14 per cent to 125 million bags compared with 110 million bags in 2005-2006. The worldwide exports for the year also were up by 9.6 per cent to 96.7 million bags against 88.2 million bags in 2005-2006.

India’s non traditional areas like Visakhapatnam, East Godavari district in Andhra Pradesh saw an expansion of eight per cent in 2008-2009, compared to the previous year. These regions have seen an expansion of 4000 hectares annually which is because of the measures taken by the state government and coffee board. It is also one of the avenues of employment generation. The Eleventh Plan allocated Rs 7500 million for coffee sector which lays stress on boosting productivity, developing new coffee species, driving domestic consumption and concentrating on export of value added coffee. Also, mechanisation is targeted at pruning, weeding, picking and operations. Over the ten year period, 2007 to 2017, around 80,000 hectares of plantation will be replanted.

Italy is one of the major buyers of the Indian coffee. Others include nations like Russian Federation, Belgium and Spain. Of the total exports, Italy shares a whopping 25 per cent.

In spite of all of it, Indian coffee is losing its sheen because of the recession and the stiff competition in the global market. High price is the principal factor. As quoted earlier the prices of Indian coffee are 20 per cent higher than the Central American variety and five per cent higher than the Vietnam variety. According to latest estimates, coffee exports have declined over 21 per cent during the first 10 months of the coffee year (October 2008 to September 2009). Exports during this period stood at 152,681 tones, as against 194,058 tones in the corresponding period of the previous year.

Apart from that the production is also hampered by adverse weather conditions, non scientific cultivation, unsuitable location, delay in supply of input, improper handling and pruning systems, adverse biological properties of soil, old plants, inadequate irrigation and poor status of farmers.
The Coffee Board has included non traditional areas under the Eleventh Plan to give it a boost which will also include making gainful employments for the localities.

Still a lot of steps need to be taken so that the sector becomes technologically and research driven rather than subsidy driven.

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Robusta coffee has seen a rise in demand with coffee being the second largest traded commodity on the world after crude oil. The world coffee consumption has increased significantly from 109.84 million bags in 2002 to 120.11 million bags in 2006.