Vietnam imported more than 17 tons of green coffee from the Brazilian market.

According to data from the Brazilian State Center for Foreign Trade Statistics (Comex Stat), in the first 7 months of the year, Vietnam - the world's second largest coffee producer and exporter - bought a total of 17,428 tons of coffee beans from Brazil, worth more than 59 million USD, a sharp increase of 5.4 times in volume and nearly 5.3 times in value compared to the same period last year.

This is also the largest volume of coffee that Vietnam has ever imported from Brazil, higher than the 12,609 tons of the entire 2021-2023 period combined.

In July alone, Vietnam imported 6,762 tons of green coffee beans from Brazil, double the previous month and 28 times higher than the same period last year. This result made Vietnam the 8th largest coffee importer from Brazil last month.

Vietnam's coffee imports from Brazil increased sharply. Illustrative photo.

Vietnam's coffee imports from Brazil increased sharply amid falling domestic output and low inventories.

In the 2023-2024 crop year, Vietnam's coffee output is estimated at 1.47 million tons - the lowest level in 4 years, down 20% compared to the 2022-2023 crop year, according to statistics from the Ministry of Agriculture and Rural Development . Coffee output in the 2024-2025 crop year is likely to continue to decrease due to unfavorable weather factors.

Vietnam's coffee exports in July decreased for the sixth consecutive month and the eighth month since the beginning of the crop year.

Low inventories from last year, combined with reduced output, led to a shortage in the domestic market in Vietnam this year, occurring earlier than expected in the first months of the year.

Mr. Le Thanh Son, Sales Director of Dak Lak 2/9 Import-Export Company Limited (Simexco DakLak) estimated that by August 17, inventory was only about 3% of the total output of about 1.47 million tons of the 2023-2024 crop year. Therefore, the export volume from now until the end of the year may decrease sharply; at the same time, inventory transferred to the new crop is almost zero.

Unusual weather conditions have led Asian countries to increase coffee imports from Brazil. The El Nino phenomenon has caused extreme drought in Southeast Asia this year, reducing output in Vietnam and Indonesia, causing domestic prices to skyrocket.

Previously, the summary report of the 2022-2023 crop year of the Vietnam Coffee and Cocoa Association (VICOFA) said that in the previous crop year, Vietnam imported a total of 98,600 tons of coffee beans, worth up to 246 million USD, an increase of 19% in volume and 23% in value compared to the 2021-2022 crop year.

According to VICOFA, to serve export processing, Vietnam mainly imports coffee beans from countries with lower prices, or coffee types that Vietnam can grow less due to climate and soil conditions, such as Arabica coffee. Arabica coffee is only grown in a few areas in the country, so the quantity is limited, while this type is of high quality, so it must be imported for consumption.

According to Brazil’s National Food Supply Company (Conab), the average yield of Robusta coffee fields in the country has increased by about 50% over the past 10 years, to 44.2 bags (60 kg) per hectare. In contrast, Arabica coffee yields have increased by only 24% over the same period, to 26.7 bags per hectare.

VICOFA said that Vietnam has imported coffee for many years like other agricultural products (rice, cashew nuts, etc.) from other countries mainly for processing and export.

With green coffee, Vietnam imports from countries with lower prices, or from coffee types that Vietnam can grow less due to climate and soil conditions, such as Arabica coffee. Arabica coffee is only grown in a few areas in the country, so the quantity is limited, while this type is of high quality, so it must be imported for consumption.

Vietnam's domestic Robusta coffee prices are 24-30% higher than Brazil's. Typically in July, Vietnam's Robusta coffee prices averaged around VND122,000/kg while Brazil's was only around VND95,000/kg.

Source: https://congthuong.vn/viet-nam-nhap-khau-hon-17-tan-ca-phe-nhan-tu-thi-truong-brazil-340167.html