Coffee exports recover, bringing in 4.5-5 billion USD this year
According to the Vietnam Coffee and Cocoa Association (Vicofa), coffee exports are forecast to continue to be favorable in 2024. In particular, coffee prices are currently increasing sharply, so although the volume of coffee exported to the world may decrease, the export value may still break out. Vicofa expects coffee exports to reach about 4.5 to 5 billion USD in 2024.
Coffee exporters said that over 38,200 tons of coffee exported in the first month of 2024 is a record number for the highest coffee export volume in nearly 13 years and brings in a record high turnover value ever.
By crop year, in the 2023/2024 coffee crop year (from October 2023 to the end of January 2024), Vietnam's coffee exports reached 564,699 tons, an increase of 20.6% over the same period of the previous crop year.
According to the Department of Industry and Trade of Gia Lai province, the province's coffee export turnover in the first two months of 2024 reached 45,000 tons, worth 115 million USD, up 7.14% in volume and 17.35% in value.
One of the bright spots of the coffee market in 2024 is the price breakthrough. The average export price of coffee in the first month of 2024 reached 3,050 USD/ton, up 5.6% over the previous month and 39.6% over the same period last year. Notably, from February 2023 to now, coffee prices have continuously increased sharply and have doubled compared to a year ago.
According to the Ministry of Agriculture and Rural Development (MARD), the price of Robusta coffee futures for May 2024 on the London market reached 3,200 USD/ton, down 0.87% compared to the previous week but up 55.2% compared to the same period last year. The highest price of the week reached 3,280 USD/ton.
In the New York market, the average price of Arabica coffee futures for May 2024 reached 4,250 USD/ton, up 2.37% compared to the price last week and up 6.4% compared to the same period last year. The highest price of the week reached 4,373 USD/ton.
In Vietnam, the average Robusta coffee price in the Central Highlands provinces continued to increase this week. In Dak Lak, the average price reached VND81,653/kg, up 3.52% compared to the previous week and 77.54% compared to the same period last year. In Lam Dong, the average coffee price reached VND81,100, up 4.08% compared to the previous week and 77.54% compared to the same period last year.
The export opportunity of Vietnamese coffee this year is huge.
According to general assessment, coffee prices will continue to stay high for a long time due to limited world supply due to forecasted decline in coffee output in traditional coffee exporting countries such as Brazil, Honduras, Indonesia...
According to the International Coffee Organization (ICO), due to the impact of heavy rains, Indonesia's coffee output in the 2023-2024 crop year is estimated to decrease by 16.6% compared to the previous crop year.
Honduras' Arabica coffee output in the 2023-2024 crop year is forecast to reach 5.35 million bags, down 5.98% from the previous crop year.
Mr. Do Ha Nam - Chairman of the Board of Directors and General Director of Intimex Group Joint Stock Company said that coffee prices continue to be high due to high world demand and limited supply. This is a great opportunity for Vietnamese coffee.
For sustainable exports, the coffee industry needs to continue restructuring, promote deep processing, and create a strong brand for Vietnamese coffee in the world market.
Mr. Nguyen Ngoc Luan - CEO of Meet More - one of the coffee exporting enterprises, said: In 2024, coffee is still considered an export advantage and high value product. To seize this opportunity and export sustainably and in large quantities, enterprises need to promote deep processing because the profit value of deeply processed coffee is higher.
"The deeply processed coffee products of Meet More and some other brands have now been accepted by the world market," Mr. Luan informed.
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