Vietnam's coffee production should drop 25% in 2012/13

The Vietnam’s coffee season 2012/13 should fall by about a quarter compared to the previous record registered in crop to 18.75 million bags of 60 pounds (1.1 million tons), and next season could be affected by drought, said on Tuesday an industry official.
A smaller crop in Vietnam, the largest producer of Robusta, can help support world prices even at a time when the world production in 2012/13, which should reach 147 million bags, is much higher than demand by 141 million bags according to a Reuteurs survey.
"We are concerned with the next harvest because of signs of drought at the moment," said Luong Van Tu, head of the Vietnam Coffee and Cocoa Association (Vicofa).
About 70% of the Central Plateau, coffee belt in the Asian country is facing water shortages, which can lead to "sharp declines" in the next harvest, due to start in October, said the association in a statement.
The previous crop of coffee in Vietnam stood at 1.5 million tons, or about 25 million bags, according to information from Vicofa. The coffee crop year in the country occurs between October and September.
A lower production in the 2012/13 season is normally expected due to a natural cycle of the coffee plantations, they need rest after a big harvest. The unfavourable weather has also affected crop development, said Vicofa.
The association, based in Hanoi gave no forecast for the next harvest. For operators, the projections of Vicofa are generally seen as undervalued in an attempt to inflate prices.
Source: Exame