Prices jump to 1-month high, Vietnam's coffee exports have a chance to increase

According to information from the Vietnam Commodity Exchange (MXV), at the end of the trading session on October 18, the focus continued to be on the increase of two coffee products. Of which, Arabica prices increased by 0.64%, reaching the highest level in a month, Robusta prices recorded the 5th consecutive increase when closing at a price 0.65% higher than the reference price. Concerns about supply disruptions from the two leading coffee export markets supported the price to continue to rise.

Prices of two coffee products continue to increase

Arabica prices in Brazil have fallen more than 30% year-on-year and are down further from a week ago, according to the government ’s Crop Supply Agency (CONAB). Low prices could keep suppliers out of the market, raising concerns about short-term supply disruptions.

At the same time, prolonged rains in Vietnam's main coffee growing region right at the time of farmers' harvest are raising some concerns about negative impacts on the output and export timing of the new crop of coffee.

In the domestic market, yesterday, October 18, the price of green coffee beans in the Central Highlands and the Southern provinces increased for the fourth consecutive day. With an increase of 400 VND/kg, domestic coffee is currently purchased at around 63,700 - 64,200 VND/kg. Compared to the beginning of the week, the price of coffee has increased sharply by nearly 1,000 VND/kg.

High prices benefit coffee exports

The soaring prices of both types of coffee have contributed to the benefit of coffee exports. The latest statistics from the General Department of Customs show that in the first 9 months of 2023, Vietnam's coffee exports reached 1.25 million tons, worth 3.13 billion USD, down 8.3% in volume, but up 0.7% in value compared to the same period last year.

Output and export turnover decreased, but the selling price went in the opposite direction. In September 2023, the average export price of Vietnamese coffee recorded a new record high of 3,310 USD/ton, up 8.4% compared to August 2023 and up 36.1% compared to September 2022. In the first 9 months of 2023, the average export price of our country's coffee reached 2,497 USD/ton, up 9.8% over the same period last year.

To improve coffee export capacity, recently, at Phu My II Industrial Park, Ba Ria-Vung Tau, Highlands Coffee held a groundbreaking ceremony for the international standard Cao Nguyen coffee roasting factory with an investment capital of up to 500 billion VND.

With an area of ​​nearly 24,000m2 and world -leading technology equipment, Highlands Coffee factory can reach a capacity of nearly 10,000 tons of coffee per year in the first phase. The next phases can reach a capacity of 75,000 tons of coffee per year. This will be the leading coffee roasting factory in Ba Ria - Vung Tau province in particular and in Vietnam in general. Thereby improving the production capacity and export of processed coffee.

Highlands Coffee confidently affirms its superior position in the field of producing roasted coffee with Vietnamese flavor, as well as meeting international standards. This is also the brand's strategic step in the direct race with global coffee brands.

The Cao Nguyen Coffee Roasting Factory in Ba Ria - Vung Tau province is one of the key projects in the brand's development strategy in the next 5 years and is oriented to become the largest coffee roasting factory in Vietnam and of regional stature.

Among the main markets for Vietnamese coffee in the past 9 months, Mexico is one of the countries that recorded a sharp increase in both output and turnover. Specifically, in September, coffee exports to Mexico reached 3,051 tons with a value of more than 7.97 million USD, up 85.7% in volume and a sharp increase of 141.2% in value compared to September 2022.

By the end of the third quarter, this North American market spent 77.46 million USD to import 32,558 tons of coffee, an increase of 48.6% in volume and 73.2% in value compared to the same period in 2022.

The average export price of coffee to Mexico was 2,379 USD/ton, up 16.6% over the same period in 2022. Thanks to the increase in export prices, export turnover to this market increased significantly.

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