Producers of Vietnam coffee crop predict up to 25% lower due to dry weather

The Robusta coffee production in Vietnam should fall sharply this year as a prolonged drought wreaks havoc on crops in the country. Farmers said they expected that the harvest is 20% to 25% lower than the previous year due to dry weather during the important phase of flowering. Vietnam is the largest producer of this kind of coffee.
Keith Flury, senior analyst at Rabobank, said prices of Robusta beans have supported by the climatic conditions and the market will be eyeing the export levels in the next six months. The prices of commodity are up 12% since January, but now traders predict high even more pronounced if the drought persists in Vietnam.
"A prolonged drought has damaged at least 10 hectares planted with coffee only in my province. We can do nothing to save the crops, since the sites do not have enough water for daily use", said Trang Quang Thanh, director of the Department of agriculture and Rural Development Dak Lak province, who farms about 200 hectares.
"It does not rain since September last year, and if the drought continued until May this year, the total area of coffee plantations damaged probably grow to 40,000 hectares. Other provinces in the region also suffer from drought", he added.
Source: Dow Jones