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Vietnam Crop Could Be Down 10 Percent in 2012-13

A survey of Vietnam traders and growers suggests that the country’s 2012-2013 crop could be down approximately 10 percent from this year’s large harvest. The country’s next yearly  growing season begins in October.

Vietnam coffee supply may be down in 2013“After such a good coffee harvest branches become weaker, so they had to cut old branches for new ones to come out,” Le Tien Hung, the deputy general director of Sept. 2nd Import-Export Co., based in Dak Lak, told Bloomberg Businessweek. “New branches won’t be strong enough to bear many fruit, so output will probably fall.”

Bloomberg surveyed at least 10 growers and shippers who collectively estimated that the company’s total output may drop to 1.3 million metric tons next year, from this year’s 1.45 million. That could affect the global market, as worldwide robusta supply is only expected to outpace demand by 500,000 60-kilo bags this year, CoffeeNetwork, a unit of INTL FCStone Inc., told Bloomberg.

Vietnam is the world’s leading robusta producer, supplying the more bitter beans used in instant coffee and espresso products throughout the world. The company’s robusta output may continue to decline in future years as it makes more room for arabica growing.

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