""

Required Report - public distribution

**Date:** 11/26/2003

**GAIN Report Number:** VM3027

VM3027

**Vietnam**

**Coffee**

**Semi-Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Henry Schmick

#### U.S. Embassy

**Prepared by:**

Bui Thi Huong/Truong Minh Dao

**Report Highlights:** Vietnam\'s 2003/2004 coffee area declined a
little (perhaps by 10,000 hectares), but production will probably
increase by 5-10 percent to 710 thousand metric tons due to better crop
management and increased use of inputs. Although Vietnam remains a
tea-drinking society, consumption of instant coffee is rapidly
increasing. Assuming no last minute weather shocks, Vietnam\'s 2003/2004
coffee exports will remain around last\'s year level, somewhere between
670-680 thousand tons. Export prices have recovered from the 2000/01 low
of \$436/mt to about \$630/mt, but that remains a small part of the peak
price of \$2,633/mt in 1994/95.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Semi-Annual Report

Hanoi \[VM1\]

\[VM\]

TABLE OF CONTENTS

[PRODUCTION 3](#production)

[Vietnam's 2003/04 coffee area down but crop production up
3](#vietnams-200304-coffee-area-down-but-crop-production-up)

[Table 1: Vietnam Coffee Production, Supply and Demand
3](#table-1-vietnam-coffee-production-supply-and-demand)

[CONSUMPTION 4](#consumption)

[Consumption of instant coffee increasing
4](#consumption-of-instant-coffee-increasing)

[Coffee processing industry is expanding
5](#coffee-processing-industry-is-expanding)

[PRICE 5](#price)

[Domestic coffee prices have increased but remain quite unstable
5](#domestic-coffee-prices-have-increased-but-remain-quite-unstable)

[Table 2: Robusta coffee prices in Dak Lak province
5](#table-2-robusta-coffee-prices-in-dak-lak-province)

[Table 3: Domestic coffee prices in other key coffee producing provinces
5](#table-3-domestic-coffee-prices-in-other-key-coffee-producing-provinces)

[Vietnam's coffee export prices recovered (a little) in 2002/03
6](#vietnams-coffee-export-prices-recovered-a-little-in-200203)

[Table 4: Vietnam's average coffee export prices (1994/95-2002/03 crops)
6](#table-4-vietnams-average-coffee-export-prices-199495-200203-crops)

[Table 5: Comparation of Vietnam's Average coffee export prices in
2001/02 and 2002/03 crops
6](#table-5-comparation-of-vietnams-average-coffee-export-prices-in-200102-and-200203-crops)

[Table 6: Vietnam average coffee export prices (July-November, 2003)
7](#table-6-vietnam-average-coffee-export-prices-july-november-2003)

[TRADE 7](#trade)

[Vietnam's 2002/03 coffee export down in volume but up in the value
7](#vietnams-200203-coffee-export-down-in-volume-but-up-in-the-value)

[Table 7: Vietnam's coffee PS&D table
7](#table-7-vietnams-coffee-psd-table)

[PSD Table 7](#psd-table)

[POLICY 8](#policy)

[Vietnam and Indonesia are working on an agreement to reduce robusta
production
8](#vietnam-and-indonesia-are-working-on-an-agreement-to-reduce-robusta-production)

[Government of Vietnam to construct \$2 million coffee market in Dak Lak
8](#government-of-vietnam-to-construct-2-million-coffee-market-in-dak-lak)

[FAO assisting Vietnam to improve the coffee quality
8](#fao-assisting-vietnam-to-improve-the-coffee-quality)

# PRODUCTION

## Vietnam's 2003/04 coffee area down but crop production up 

Vietnam's 2003/04 coffee area (for the crop harvested in October 2003
and marketed in the period to September 2004) continues to decline, a
tad, as some of the low-productive and over-aged coffee areas are being
converted to more profitable crops. Post estimates the 2003/2004 coffee
area will be about 510 thousand hectare (tha), down about 10,000
hectares from last year. The area reduction was mainly in the robusta
growing areas in the Tay Nguyen (Central) Highland provinces. In Dak Lak
province, the largest coffee producing area in the country, corn, cocoa,
cotton and cashews replaced several thousand hectares of coffee. In some
areas, arabica coffee is one of the alternative crops chosen to replace
low-profit (or no-profit) robusta coffee.

Post estimates that 2003/04 coffee production will go up (slightly) due
to better crop yields from better nursery care, higher input use, and
better weather conditions. Therefore, Post revises Vietnam's 2003/04
coffee production to 710 thousand metric tons (equivalent to 11,833
thousand 60 kg bags) up from our previous estimate of 640 thousand
metric tons (tmt).

As the robusta coffee area continues to slowly shrink, the arabica
coffee area is slowly expanding. However, arabica area is only about
5-6% of the total coffee area. At present, the arabica area is estimated
to be about 25,000 ha. The key arabica growing provinces are Son La
(3,000 ha), Thanh Hoa (4,000), Quang Tri (3,000 ha) and Nghe An (2,000
ha). Son La province plans to significantly expand the arabica area to
6,000-10,000 ha by 2010. In Quang Tri province about 150 ha of arabica
was planted in 2003. Dak Lak's provincial agricultural department plans
to expand the arabica area to 10,000 ha over the next 3-5 years from the
current area of 4,000 ha. Similarly, Lam Dong and Kon Tum provinces also
plan to replace low-productive robusta with arabica.

Based on many sources (including improved export data), Post revises
Vietnam's 2001/02 and 2002/03 production up due to higher that
previously estimated harvested areas and yields. Accordingly, Vietnam's
2001/02 coffee production is revised to 770 tmt (or 12,833 thousand
bags) with a harvested area of 485 tha. The new production estimate of
the 2002/03 coffee is 670 tmt (11,166 thousand bags).

## Table 1: Vietnam Coffee Production, Supply and Demand

  ----------------- --------- --------- --------- --------- --------- --------- --------- ---------
                    2000/01             2001/02             2002/03             2003/04   

                    Old       Revised   Old       Revised   Old       Revised   Old       Revised

  Sown Area         560       560       540       540       520       520       520       510

  Area Harvested    415       450       470       485       500       510       500       500

  Beginning Stocks  15        15        30        30        50        50        10        20

  Production (green 900       920       735       770       615       670       640       710
  bean)                                                                                   

  Total Imports     0         0         0         0         0         0         0         0

  Jan-Dec Imports   0         0         0         0         0         0         0         0

  Jan-Dec Imports   0         0         0         0         0         0         0         0
  from US                                                                                 

  TOTAL SUPPLY      915       935       765       800       665       720       650       730

  TOTAL EXPORT      880       880       670       720       590       670       610       680

  Jan-Dec Exports   880       880       670       720       590       670       610       680

  TOTAL Domestic    25        25        38        30        30        30        32        32
  Consumption                                                                             

  Ending Stocks     10        30        57        50        45        20        8         18

  TOTAL             915       935       810       800       665       720       650       730
  DISTRIBUTION                                                                            
  ----------------- --------- --------- --------- --------- --------- --------- --------- ---------

Source: GSO, Vicofa, MARD and FAS/Vietnam Estimates

Data on Vietnam's coffee area, production, and even exports are
controversial. It is difficult to generate accurate data sets, as the
data collected from different (reliable) sources are not similar in
magnitude or even trend. Throughout this report, Post uses a variety of
data, sources and our own estimates to generate our best guesstimates of
the production, supply and distribution of Vietnam\'s coffee.

The rapid increase in Vietnam's 1999/2000 and 2000/2001 coffee crops was
caused by a boom in tree planting during the 1997-2000 period. Official
data published in Vietnam's 2003 Statistical Yearbook show that
Vietnam\'s coffee area increased sharply from 340 tha in 1997 to 563 tha
in 2001. Therefore, Vietnam's coffee harvested areas also increased
considerably starting from the 1999/2000 coffee crop.

# CONSUMPTION

Vietnam's domestic consumption is at moderate level. According to the
International Coffee Organization (ICO), Vietnam's domestic coffee
consumption for 2002/03 is estimated at 30 tmt, equivalent to 500
thousand bags. Post estimates Vietnam's 2003/04 domestic consumption at
32 tmt (or 555 thousand bags), an increase of 6-7% compared with
2002/03's level. No international coffee-shop chains have opened in
Vietnam, but several local chains have outlets springing up in all the
major urban areas.

## Consumption of instant coffee increasing

According to local coffee traders and processors, the annual growth rate
of instant coffee in the domestic market is estimated at 13-14%. The
instant coffee consumption growth is due to rising disposable incomes,
improving living standards, and changing beverage habits \--
particularly for the young urban people (the emerging Vietnamese
yuppies).

According to a recent market survey, Vietnam's instant coffee
consumption is estimated at 5,000-6,000 mt of which 50-60% was supplied
by local processors. The remaining amount (roughly 2,600 mt) was
imported from foreign countries including the United States and
Singapore.

The Bien Hoa Coffee Factory (under management of the state-owned
Vinacafe enterprise) and Nestle Vietnam are the two major instant coffee
producers in Vietnam. The production capacity of Bien Hoa Coffee is
about 1,000 mt of instant coffee per year while the Nestle plant in
Vietnam produces about 2,000 mt.

## Coffee processing industry is expanding

To meet the increasing demand from domestic markets, as well as for
exports, several companies are building new instant coffee production
factories. A private company based in Ho Chi Minh City will put into
operation a new instant coffee producing line (capacity 1,000 mt/year)
in 2004. A well-known local coffee company, Trung Nguyen, is
constructing an instant coffee factory in Dak Lak province. The factory
will go into operation in the last quarter of next year with an annual
capacity of 1,500 mt.

# PRICE

**- Exchange rate: Vietnamese Dong (VND) 15,715 equal \$1 as of November
26, 2003**

# 

## Domestic coffee prices have increased but remain quite unstable

Domestic coffee prices declined in the first weeks of November compared
with the prices quoted in October and September due to increasing
supplies from the new coffee harvest. Prices of Robusta grade 2 (5%
broken and black material) are quoted at VND 9,050-9,100 in key coffee
producing provinces.

During the second half of the 2002/03 marketing year, local coffee
prices increased (over the 30 year lows), but remain very unstable.
Coffee prices in Dak Lak, the largest coffee-producing province,
increased to VND 10,650-10,700/kg in September but dropped back to VND
9,600/kg in October. The price has continued to fall as the new coffee
harvest starts. Table 2 illustrates Dak Lak's June-November coffee
prices in four coffee business areas.

## Table 2: Robusta coffee prices in Dak Lak province

  ---------------- ---------------- ------------- -------------- -----------
  Dates            Buon Me Thuot    Eakar         KrongNang      KrongBuk

  June 20-30       8,900            8,900         8,900          8,900

  July 1-15        9,200            9,200         9,200          9,200

  July 15-30       9,250            9,250         9,200          9,250

  August 1-15      9,800            9,800         9,700          9,800

  September 1-15   10,800           10,700        10,650         10,800

  September 16-30  10,700           10,700        10,600         10,700

  October 1-15     9,600            9,600         9,500          9,600

  November 1-10    9,100            9,000         9,000          9,050
  ---------------- ---------------- ------------- -------------- -----------

Source: Dak Lak Agricultural Extension Center

Similarly, local coffee prices in other key coffee producing provinces
including Dong Nai, Lam Dong and Gia Lai were also fluctuating right at
harvest-time (which farmers dislike).

## Table 3: Domestic coffee prices in other key coffee producing provinces

  ----------------- -------- -------- -------------- ------------- --------- ----------
                    Unit     July     August         September     October   November

  Dong Nai province VND/kg   8,800    8,700-8,800    9,000-9,200   9,800     9,500

  Lam Dong Province VND/kg   10,000   9,000-10,000   10,200        9,400     9,300

  Gialai province   VND/kg   9,300    9,200-9,300    9,900         9,400     9,200
  ----------------- -------- -------- -------------- ------------- --------- ----------

Source: MARD

## Vietnam's coffee export prices recovered (a little) in 2002/03

After declining to the lowest level in 30 years, Vietnam's coffee export
prices started to recover in the last months of 2002 due to higher
international demand. Although season average prices did increase to
roughly \$620/mt in the 2002/03 market year, they remain far from the
peak prices (\$2,633) of 1994/95 (see table 4).

## Table 4: Vietnam's average coffee export prices (1994/95-2002/03 crops)

  ------------------ ----------------------------------------------------
  Coffee crops       Average export prices (\$/mt)

  1994/95            2,633

  1995/96            1,815

  1996/97            1,198

  1997/98            1,521

  1998/99            1,373

  1999/00            823

  2000/01            436

  2001/02            375

  2002/03            620
  ------------------ ----------------------------------------------------

Source: Customs Department and Vicofa.

The 2002/03 coffee crop monthly average export prices increased by
50-114% compared with the 2001/02's crop level (see table 5)

## Table 5: Comparation of Vietnam's Average coffee export prices in 2001/02 and 2002/03 crops

  ------------------- --------------- ---------------- -------------------
                      2001/02 crop    2002/03 crop     Change (%)

                      (usd/mt)        (usd/mt)         

  October             332             498              50

  November            316             548              73

  December            319             596              87

  January             329             657              100

  February            321             688              114

  March               355             640              80

  April               397             625              57

  May                 437             653              49

  June                389             620              59

  July                457             623              36

  August              451             636              41

  September           490             680              39
  ------------------- --------------- ---------------- -------------------

Source: Customs Department and Vicofa

Similar to domestic coffee prices, Vietnam's coffee export prices were
also fluctuating during the last five months of 2002/03 season. The
export prices increased from \$610-635/mt quoted in July and August to
\$630-670 in the September-October period. However, it dropped to
\$610-620/mt in November (see table 6)

## Table 6: Vietnam average coffee export prices (July-November, 2003)

  ------------ ------- --------- --------- ----------- ---------- ----------
               Unit    July      August    September   October    November

  **Export     \$/mt   630-635   610-635   630-700     640-670    610-620
  price**                                                         
  ------------ ------- --------- --------- ----------- ---------- ----------

Source: MARD

Although coffee prices increased (some), coffee farmers are still not
happy because the coffee prices are barely above, at, or barely below
(depending on who you ask) the production costs. According to Vicofa,
the average coffee production cost is about VND 10,000/kg while the
domestic coffee prices are only VND 9,000-9,500/kg. Coffee farmers are
not optimistic about near-term price increases as new-crop supplies are
now entering an already over-supplied market.

# TRADE

## Vietnam's 2002/03 coffee export down in volume but up in the value

According to various trade sources, Vietnam's 2002/03 coffee exports are
(best) estimated at 670 tmt (11,167 thousand bags), a decrease of 7%
compared with the previous year. The export value was about \$428
million, an increase of 59% compared with the export value earned in
2001/02 due to better export prices.

Germany, the United States, Belgium, Spain and Poland were Vietnam's top
five importers for the 2002/03 crop. About 106 tmt of coffee was shipped
to Germany, while U.S. imported 84 tmt and was ranked as the second
largest buyer of Vietnamese robusta coffee. Belgium and Spain, each
imported about 60 tmt, and Poland imported 57 tmt.

Almost all of the exports were in the form of green coffee beans, as
exports of processed coffee products (roasted and instant coffee)
remained insignificant. According to Vicofa, Vietnam exported about 600
mt of processed coffee products in the 2002/03 coffee marketing year.
Vietnam's instant coffee markets include Taiwan, the United States,
Malaysia, China and Canada. Local coffee processors are optimistic about
foreign markets, including the United States, for Vietnam's instant
coffee exports.

Post estimates Vietnam's 2003/04 coffee exports up slightly to 680 tmt
(or 11,333 thousand bag).

## Table 7: Vietnam's coffee PS&D table

<table>
<colgroup>
<col style="width: 30%" />
<col style="width: 7%" />
<col style="width: 1%" />
<col style="width: 5%" />
<col style="width: 4%" />
<col style="width: 10%" />
<col style="width: 11%" />
<col style="width: 8%" />
<col style="width: 5%" />
<col style="width: 14%" />
</colgroup>
<tbody>
<tr class="odd">
<td><h2 id="psd-table">PSD Table</h2></td>
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr class="even">
<td><strong>Country</strong></td>
<td colspan="3"><strong>Vietnam</strong></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="2"></td>
</tr>
<tr class="odd">
<td><strong>Commodity</strong></td>
<td colspan="5"><strong>Coffee, Green</strong></td>
<td colspan="4">(1000 HA)(MILLION TREES)(1000 60 KG BAGS)</td>
</tr>
<tr class="even">
<td></td>
<td colspan="2">2002</td>
<td colspan="2">Revised</td>
<td>2003</td>
<td>Estimate</td>
<td colspan="2">2004</td>
<td>Forecast</td>
</tr>
<tr class="odd">
<td></td>
<td colspan="2">USDA Official [Old]</td>
<td colspan="2">Post Estimate [New]</td>
<td>USDA Official [Old]</td>
<td>Post Estimate [New]</td>
<td colspan="2">USDA Official [Old]</td>
<td>Post Estimate [New]</td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td colspan="2"></td>
<td colspan="2">10/2001</td>
<td></td>
<td>10/2002</td>
<td colspan="2"></td>
<td>10/2003</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td colspan="2">540</td>
<td colspan="2">540</td>
<td>520</td>
<td>520</td>
<td colspan="2">520</td>
<td>510</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td colspan="2">470</td>
<td colspan="2">485</td>
<td>500</td>
<td>510</td>
<td colspan="2">500</td>
<td>500</td>
</tr>
<tr class="odd">
<td>Bearing Trees</td>
<td colspan="2">587</td>
<td colspan="2">606</td>
<td>625</td>
<td>637</td>
<td colspan="2">625</td>
<td>625</td>
</tr>
<tr class="even">
<td>Non-Bearing Trees</td>
<td colspan="2">88</td>
<td colspan="2">69</td>
<td>25</td>
<td>13</td>
<td colspan="2">25</td>
<td>13</td>
</tr>
<tr class="odd">
<td>TOTAL Tree Population</td>
<td colspan="2">675</td>
<td colspan="2">675</td>
<td>650</td>
<td>650</td>
<td colspan="2">650</td>
<td>638</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td colspan="2">509</td>
<td colspan="2">509</td>
<td>259</td>
<td>842</td>
<td colspan="2">176</td>
<td>333</td>
</tr>
<tr class="odd">
<td>Arabica Production</td>
<td colspan="2">166</td>
<td colspan="2">166</td>
<td>250</td>
<td>250</td>
<td colspan="2">310</td>
<td>310</td>
</tr>
<tr class="even">
<td>Robusta Production</td>
<td colspan="2">12084</td>
<td colspan="2">12667</td>
<td>10000</td>
<td>10917</td>
<td colspan="2">10440</td>
<td>11523</td>
</tr>
<tr class="odd">
<td>Other Production</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
</tr>
<tr class="even">
<td>TOTAL Production</td>
<td colspan="2">12250</td>
<td colspan="2">12833</td>
<td>10250</td>
<td>11167</td>
<td colspan="2">10750</td>
<td>11833</td>
</tr>
<tr class="odd">
<td>Bean Imports</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Roast &amp; Ground Imports</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Soluble Imports</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
</tr>
<tr class="even">
<td>TOTAL Imports</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>TOTAL SUPPLY</td>
<td colspan="2">12759</td>
<td colspan="2">13342</td>
<td>10509</td>
<td>12009</td>
<td colspan="2">10926</td>
<td>12166</td>
</tr>
<tr class="even">
<td>Bean Exports</td>
<td colspan="2">12000</td>
<td colspan="2">12000</td>
<td>9833</td>
<td>11176</td>
<td colspan="2">10166</td>
<td>11333</td>
</tr>
<tr class="odd">
<td>Roast &amp; Ground Exports</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Soluble Exports</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>TOTAL Exports</td>
<td colspan="2">12000</td>
<td colspan="2">12000</td>
<td>9833</td>
<td>11176</td>
<td colspan="2">10166</td>
<td>11333</td>
</tr>
<tr class="even">
<td>Rst,Ground Dom. Consum</td>
<td colspan="2">500</td>
<td colspan="2">500</td>
<td>500</td>
<td>500</td>
<td colspan="2">533</td>
<td>533</td>
</tr>
<tr class="odd">
<td>Soluble Dom. Consum.</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
</tr>
<tr class="even">
<td>TOTAL Dom. Consumption</td>
<td colspan="2">500</td>
<td colspan="2">500</td>
<td>500</td>
<td>500</td>
<td colspan="2">533</td>
<td>533</td>
</tr>
<tr class="odd">
<td>Ending Stocks</td>
<td colspan="2">259</td>
<td colspan="2">842</td>
<td>176</td>
<td>333</td>
<td colspan="2">227</td>
<td>300</td>
</tr>
<tr class="even">
<td>TOTAL DISTRIBUTION</td>
<td colspan="2">12759</td>
<td colspan="2">13342</td>
<td>10509</td>
<td>12009</td>
<td colspan="2">10926</td>
<td>12166</td>
</tr>
</tbody>
</table>

# POLICY

## Vietnam and Indonesia are working on an agreement to reduce robusta production

In June 2003, Vietnam and Indonesia, the world's two biggest robusta
coffee producers, discussed an agreement to reduce robusta production in
both countries. According to trade contacts, the key proposal focused on
cutting 20% of Vietnam's and 15% of Indonesia's robusta areas by 2005.
However, the agreement is still under negotiation.

## Government of Vietnam to construct \$2 million coffee market in Dak Lak

According to Vicofa (Vietnam Coffee Association), the Government of
Vietnam (GOV) will invest VND 32 billion (\$2 million) building a coffee
market and information center in Dak Lak province (see VM3008). The
market is expected to be operational in 2005. The association has also
proposed another coffee trade center be developed in Ho Chi Minh City.
One of the reasons for these new centers is to address concerns that
intermediaries (aka middlemen) are profiting too much. Post disagrees;
farm-gate prices for coffee are a very high percentage of the FOB price.
However, the GOV must show that it is addressing the on-going coffee
price crisis.

## FAO assisting Vietnam to improve the coffee quality

One of key objectives of Vietnam's "coffee development strategy" is
improve the quality of its robusta and arabica crops. In coordination
with the International Coffee Organization (ICO)'s coffee quality
improvement program, Vietnam coffee exporters are encouraged to apply
new coffee quality standards (see report VM3012). However, many coffee
exporters (and importers) are not very enthusiastic about using the new
standards. Low quality coffee for a low price (for which there is a good
market) remains the image of Vietnam's coffee sector.

The United Nations Food and Agricultural Organization (FAO) have
undertaken (since May 2003) a new project (TCP/VIE/2903 worth \$372,000)
focusing on coffee quality and prevention of mold formation and
ochratoxin A (OTA) contamination of coffee in Vietnam. The project
objectives are to educate coffee growers and processors in management
interventions to improve coffee quality and its competitiveness, to
reduce losses, and to safeguard markets and consumers' health by
reduction or elimination of orchratoxin A contamination caused by mold.

Mold infection is a major concern (not only for coffee but for many
other tropical crops). According to Vietnam's Post Harvest Technology
Institute, about 18-20% of Vietnam's coffee was not qualified for export
due to mold infection during the 2000-2002 period. The FAO project aims
to help reduce that concern by addressing the storage, handling, and
processing of Vietnam's coffee.