A group of Vietnam's top coffee exporters has recommended beans from the 2012/13 crop be priced at a $30 discount to London futures and has asked the government to allow them to stockpile 300,000 tonnes to support prices. The Club of Vietnam Top Coffee Exporters made its recommendation before the 2012/13 crop year starts on October 1 and after Vietnam, the world's biggest producer and exporter of robusta coffee, picked a record high harvest of 1.6 million tonnes, or 26.7 million 60-kg bags, from the previous crop.
Farmers should sell at 40,000 dong ($1.92) per kg, it added. Discounts for Vietnam's grade 2 with 5 percent black and broken beans to London's futures this week stood at $20 to $50 a tonne for deliveries in October and November while bids by foreign buyers stood at $60 to $70 per tonne.
Vietnam's coffee crop year runs from October to September of the following year, beginning with the harvest that often peaks in December and ends in January. Many producers said they expect the 2012/13 harvest to fall by between 15 and 20 percent from the current year's record, and club chairman Do Ha Nam said abnormal rains and a greater number of old trees would lead to the drop.
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