Vietnam 2009 Coffee Exports Likely To Fall 9% To $1.75B

Vietnam's 2009 coffee exports will likely see a 9% on-year fall in value to $1.75 billion, the Viet Nam Industry and Trade Information Center said Wednesday.

The agency, under the Ministry of Industry and Trade, didn't mention a reason for the possible decline in a statement on its Web site or the possible change in volume.

Viet Nam Coffee Association Chairman Luong Van Tu said in early December the country's coffee output for the 2008-09 crop year, which ends Sept. 30, is expected to total 1 million metric tons, but wet weather and a fall in spending on crop inputs such as fertilizer will likely lead to a decline in output in the 2009-10 crop year.

Viet Nam is the world's second-largest coffee producer and exports mainly to European countries and the U.S.

The Ministry of Agriculture and Rural Development recently approved a plan to invest $1.9 billion by 2015 to boost output and improve crop quality, the agency said.

The country has revised down the trade deficit forecast for 2009 by 3.5% to $19.2 billion, compared with the 2008 trade deficit of $17.5 billion. (Dow Jones)