The Buon Ma Thuot Coffee and Commodity Exchange (BCCE) is scheduled to start operations on March 10 and will trade in coffee.
TheBCCE, formerly known as the Buon Ma Thuot Coffee Trading Centre, has atotal charter capital of 75.5 billion VND (3.5 million USD), including42 percent sourced from the People's Committee of Dak Lak Province,reported vnexpress.vn.
The exchange will trade in two products:spots and futures, for Robusta coffee and connect to global commodityexchanges, such as the Chicago Mercantile Exchange. Following Robustacoffee, BCCE plans to trade in black pepper and rubber.
TranThanh Hai, BCCE General Director, said last year that Vietnam exported1.6 million tonnes of coffee, but the export value of its coffee reachedaround 3.5 billion USD, which is less effective than othercoffee-growing countries, especially Robusta coffee.
Hai saidother coffee-growing countries could gain 10 billion USD from coffeeexports each year, while Vietnam, which accounts for about half of theworld' Robusta coffee output, can only earn about 3 billion USD fromcoffee exports.
The trading of Vietnamese coffee at the BCCE willcreate conditions for farmers to sell directly to buyers at the LondonCoffee Exchange, he said. That will help Vietnamese farmers avoid beingforced to sell at low prices.
In 2008, the Buon Ma Thuot CoffeeTrading Centre had no efficient operation because it lacked capital and agood operational mechanism, while many farmers could not conducttransactions at the centre.
The establishment of the BCCE isexpected to solve problems for commodity transactions and help seizebusiness opportunities. Additionally, feasible deposits in cash orcoffee are considered a suitable solution for small business householdsin the Central Highland region.
According to the GeneralDepartment of Customs, Vietnam exported 241,000 tonnes coffee, earning511 million USD for the first two months of this year. The exportsdropped 25.3 percent in volume and 16.4 percent in value against thesame period of last year.-VNA
TheBCCE, formerly known as the Buon Ma Thuot Coffee Trading Centre, has atotal charter capital of 75.5 billion VND (3.5 million USD), including42 percent sourced from the People's Committee of Dak Lak Province,reported vnexpress.vn.
The exchange will trade in two products:spots and futures, for Robusta coffee and connect to global commodityexchanges, such as the Chicago Mercantile Exchange. Following Robustacoffee, BCCE plans to trade in black pepper and rubber.
TranThanh Hai, BCCE General Director, said last year that Vietnam exported1.6 million tonnes of coffee, but the export value of its coffee reachedaround 3.5 billion USD, which is less effective than othercoffee-growing countries, especially Robusta coffee.
Hai saidother coffee-growing countries could gain 10 billion USD from coffeeexports each year, while Vietnam, which accounts for about half of theworld' Robusta coffee output, can only earn about 3 billion USD fromcoffee exports.
The trading of Vietnamese coffee at the BCCE willcreate conditions for farmers to sell directly to buyers at the LondonCoffee Exchange, he said. That will help Vietnamese farmers avoid beingforced to sell at low prices.
In 2008, the Buon Ma Thuot CoffeeTrading Centre had no efficient operation because it lacked capital and agood operational mechanism, while many farmers could not conducttransactions at the centre.
The establishment of the BCCE isexpected to solve problems for commodity transactions and help seizebusiness opportunities. Additionally, feasible deposits in cash orcoffee are considered a suitable solution for small business householdsin the Central Highland region.
According to the GeneralDepartment of Customs, Vietnam exported 241,000 tonnes coffee, earning511 million USD for the first two months of this year. The exportsdropped 25.3 percent in volume and 16.4 percent in value against thesame period of last year.-VNA
