Low prices hit coffee, tea growers

Farmers in the Tay Nguyen (Central Highland) province of Lam Dong have suffered due to falling prices of tea and coffee in the past three months.

While cost of fertiliser is on the rise, coffee prices have continued to fall.
In October 2008, the price of coffee was VND40,000 (US$2.3) per kilo but now it stands at VND20,000 ($1.17) per kilo.

While cost of fertiliser is on the rise, coffee prices have continued to fall.

"It is not enough for us to re-invest. I lost VND3 million ($176) per tonne of coffee," says Ta Huu Dong, a farmer in Tan Chau Commune of Di Linh District.

Local tea farmers are running into similar difficulties as tea prices have fallen to VND600,000 ($35) per tonne.

The fall in the price of fresh tea buds has affected the lives of many people in Bao Lam District because this is the main source of their income, says Nguyen Van Trieu, chairman of the district People's Committee.

As prices fall, many farmers have stopped harvesting their tea or coffee because of the expense or even gone so far as to destroy their crop.

According to an official in Bao Lam Commune, about 30 per cent of the total 400ha of tea have been cut down in the last month.

The price of tea buds is now only VND1.1 million ($67) per tonne. Meanwhile, it costs about VND1 million ($65) to harvest and transport one tonne of tea. That is why Nguyen Huu Thang, a farmer in Lam Dong, plans to cut his family's 2ha tea garden in half.

"Actually, we don't know which crops will bring a high benefit because the price of coffee and mulberry is also down," Thang said.

Lam Dong Province does not have official statistics for how many hectares of tea and coffee fields are being left fallow, but provincial officials have said that plans to stabilise the tea growing area are facing difficulties.

It is the country's biggest tea-growing and the second biggest coffee-growing province.

Lam Dong farmers are waiting for local authorities to suggest alternate crops which will bring in higher profits. (VNS)