Domestic coffee prices are at an unprecedented high, and many major markets are increasing imports; the key to success in China.

With the increasing popularity of coffee consumption in China, global coffee consumption is projected to continue growing in the future.

World and Vietnamese coffee prices fluctuated sharply this week with many unusual developments.

At the close of trading this week, robusta coffee prices continued to rise as investment funds completed contract expirations. Arabica coffee prices moved in the opposite direction, ending the week with a decline. Meanwhile, world coffee prices remained high due to strong global demand and limited supply.

Domestic coffee prices continue to "shock" the market with a sharp increase of 1,200 - 1,300 VND/kg, surpassing the 85,000 VND/kg mark.

Vietnam's coffee exports in February 2024 reached only 160,000 tons, a decrease of nearly 20% compared to the same period last year. This was due to the extended Lunar New Year holiday, which slowed down trade activities. This supported a strong recovery in London futures prices over the past two days. Europe is the largest importer of Vietnamese coffee, accounting for 29% of total export value, followed by the US, China, Russia, Indonesia, etc., according to the General Statistics Office. Coffee prices continue to remain high due to strong global demand and limited supply. This presents a great opportunity for Vietnamese coffee.

Giá cà phê hôm nay 23/7: (Nguồn: YouTube)

Domestic coffee prices surged by 1,200-1,300 VND/kg on March 1st in some key purchasing areas. (Source: YouTube)

According to TG&VN, at the end of the first trading session of March (March 1st), robusta coffee prices on the ICE Futures Europe London exchange continued to rise well. The May 2024 delivery contract increased by $48, trading at $3,143/ton. The July 2024 delivery contract increased by $31, trading at $3,057/ton. Average trading volume was high.

Arabica coffee prices on the ICE Futures US New York exchange fell, with the May 2024 contract declining by 1.05 cents to trade at 183.30 cents/lb. Meanwhile, the July 2024 contract fell by 1.30 cents to trade at 181.40 cents/lb. Trading volume was high.

Domestic coffee prices on March 1st increased sharply by 1,200 - 1,300 VND/kg in some key purchasing areas.

Average price	Medium
USD/VND exchange rate	24,450	+ 20
DAK LAK	84,700	+ 1,200
LAM DONG	84,000	+ 1,300
GIA LAI	84,500	+ 1,300
DAK NONG	84,700	+ 1,200

Unit of measurement: VND/kg.

(Source: Giacaphe.com)

Not only European and American markets, but even the Chinese market is increasing its coffee imports. China is currently Brazil's third largest coffee importer, after the US and Japan. The growing popularity of coffee in China will lead to an increase in global coffee consumption.

The Brazilian Coffee Exporters Association (Cecafe) recently stated that Brazilian producers are showing particular interest in the Chinese market, given that Brazilian coffee exports to Asia's largest economy reached record highs last year.

In January 2024, coffee sales to China also surged in volume, increasing by 153.9% compared to the same period in 2023. Brazilian coffee exports to China reached 1.4 million 60kg bags in 2023, a massive 278.6% increase compared to 2022, making the Asian nation Brazil's sixth-largest coffee importer, a jump of 14 places from the previous year.

Coffee exports to China surged in 2023 thanks to the country's young population adopting new consumption habits, including enjoying novel and high-quality coffee varieties. Meanwhile, as the world's largest coffee producer and exporter, Brazil boasts a diverse range of coffee varieties and types, offering consumers a variety of exciting experiences.

According to experts, another key to the success of Brazilian coffee exporters in the Chinese market is ensuring compliance with signed contracts, both in terms of product quality and delivery time.

The chairman of Cecafe stated that Brazilian coffee producers anticipate extremely positive sales to China in 2024, both in terms of volume and market share percentage. Cecafe is also strengthening its trade activities to expand the presence of Brazilian coffee in the Chinese market, prioritizing greater investment in image promotion and marketing, along with a focus on the quality and sustainability of exported coffee products.

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