Coffee exports increase, Vietnam determined to build standard coffee growing areas

Exports decline, Vietnamese coffee prices lead world Robusta prices Increased processed coffee exports, coffee prices hit record high

According to statistics from the Vietnam Commodity Exchange (MXV), despite the high coffee export data in August in Brazil and positive coffee inventories on the ICE, the prices of the two coffee products still recorded an increase of 1.35% for Arabica and 0.65% for Robusta, respectively.

Xuất khẩu cà phê tăng cao, Việt Nam quyết xây dựng vùng cà phê đạt chuẩn

Coffee prices continue to increase after trading session on September 14

Brazil exported 3.67 million 60-kg bags of coffee in August, including 3.35 million bags of green coffee, up 33.3% year-on-year, according to the Brazilian Coffee Exporters Association (CECAFE).

Furthermore, qualified Arabica stocks on the ICE-US remained unchanged at around 442,550 60kg bags and accompanied by 19,820 bags awaiting grading at the close of trading on September 13, while Robusta stocks on the ICE-EU increased by 680 tonnes to 36,450 tonnes.

In the domestic market, this morning, the price of green coffee beans in the Central Highlands and the Southern provinces continued to increase by 300 - 400 VND/kg, bringing the domestic purchasing price to 65,900 - 66,900 VND/kg, the highest recorded since the beginning of September.

Building a standard coffee growing area is the only solution to keep coffee prices high.

According to the General Department of Customs, Vietnam's coffee exports in August to the two main markets, the US and the EU, fell sharply, down 32.3% and 55% respectively compared to July, and down 32.6% and 58.9% year-on-year. On the other hand, coffee exports to Indonesia and the UK increased sharply by 49.3% and 393.3% compared to July; and up 53% and 41.5% year-on-year.

Specifically, Vietnam's coffee exports to the EU in the first 8 months of the year accounted for 387.9%, with the country's total coffee export volume recording 455.11 thousand tons, down 10.6% over the same period.

On the other hand, coffee exports to China increased by 5.7%, the United States increased by 11.1%, South Korea increased by 14.3%, Mexico increased by 45.6%, Algeria increased by 71.4% and especially Indonesia increased by 157.8%.

As one of the world's largest coffee exporters, the decline in coffee exports from Vietnam has been a driving force in pushing up coffee prices. The average export price of Vietnamese coffee in August was estimated at 2,963 USD/ton, up 4.8% compared to July and up 25.8% compared to the same period last year. In the first 8 months, coffee exports reached 2,459 USD/ton, up 8.7% compared to the same period last year. That is good news for coffee exporters and farmers.

To ensure that coffee prices remain high, the Ministry of Agriculture and Rural Development has approved the “Project for Developing Vietnam's Specialty Coffee for the 2021-2030 period” with the goal of reaching a specialty coffee area of 2% of the total area by 2025, meaning an output of 5,000 tons and increasing to 3% and 11,000 tons respectively in 2030.

Many key coffee producing regions are also aiming to develop a sustainable domestic consumption market. Recently, the emergence of many Vietnamese coffee brands and international supply chains from companies in the coffee industry has caused domestic consumption to increase significantly.

Typically, in Dak Lak , in 2022, the province has over 250 coffee processing facilities; including 235 facilities processing ground coffee, roasted coffee beans and 15 facilities processing instant coffee. Thus, Dak Lak province has at least 250 brands of processed coffee supplying the domestic market and for export.

Dak Lak is also encouraging coffee businesses to improve production and business skills and product competitiveness, expanding the domestic market as a foundation for building a national brand.

This year’s coffee output is forecast to decrease by 10-15%/year due to unfavorable weather. However, Vietnam’s coffee exports are receiving good support from high transaction and domestic prices to aim for this year’s turnover of over 4 billion USD.

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