Coffee exports surged by 158.3%.

This figure also represents a 10.4% increase compared to the same period in 2022.

In the first half of December, coffee exports reached US$270.58 million, an increase of 132.5% compared to the first half of November 2023 and a 44.4% increase compared to the same period in 2022.

Coffee exports continue to rise.

In the first 11.5 months of 2023, coffee exports reached over 1.51 million tons, a decrease of 9.4% compared to the same period in 2022. Export value reached over 3.91 billion USD, an increase of 2.5%.

The average export price of coffee in the first half of December 2023 reached US$2,834 per ton, a decrease of 5.2% compared to the average price for the whole month of November 2023. For the first 11.5 months of 2023, the cumulative price reached US$2,590 per ton, an increase of 13.1% compared to the same period in 2022.

Coffee export prices continue their upward trend.

On the derivatives market, coffee export prices continue to remain high. According to the Vietnam Commodity Exchange (MXV), at the close of trading on December 21, coffee prices recovered with increases of 1.57% for Arabica and 3.28% for Robusta. Concerns about supply shortages amid low inventory levels and Brazilian farmers' tendency to limit coffee sales supported the price rebound.

In its latest report on the global coffee market for the 2023/24 crop year, the US Department of Agriculture (USDA) estimates that world coffee inventories for the current crop year are only 26.5 million 60kg bags, falling to their lowest level in 12 years. At the same time, Robusta inventories on the ICE-EU exchange closed on December 20th at only 33,910 tons, a further decline from the historic low of 33,660 tons at the end of August.

Furthermore, the 0.55% drop in the Dollar Index yesterday dragged down the USD/BRL exchange rate by 0.65%. This narrowing exchange rate differential is limiting the demand for coffee sales from Brazilian farmers.

On the domestic market, as of this morning (November 22nd), the price of bulk green coffee beans in the Central Highlands and Southern provinces has also recovered to 1,600 – 1,700 VND/kg. Accordingly, domestic coffee is currently being purchased at around 69,000 - 69,700 VND/kg.

Many traders say that the Robusta coffee harvest in Vietnam is now about 75% complete, but farmers are slow to sell due to a wait-and-see attitude for higher prices, which has pushed domestic coffee prices to record highs. Fresh coffee is currently trading around 15,000 VND/kg – also the highest level ever.

Aiming for sustainable coffee production and export, localities have promoted coffee production according to international standards. For example, Gia Lai coffee products have been selected by the World Intellectual Property Organization (WIPO) to participate in the pilot project "Building brand and marketing strategies for producers of products bearing Vietnamese geographical indications". This is an opportunity for Gia Lai coffee products to have more favorable conditions to make steady and strong progress in the global market.

A representative of a coffee farming business in Dak Doa district ( Gia Lai province) said that for coffee to stand firm in the international market, it is necessary to ensure transparency in the raw material areas, focus on protecting farmers who practice organic and clean farming, and develop sustainable coffee production, which will benefit farmers, businesses, and the environment.

According to the plan, by 2025, Gia Lai will develop approximately 1,200 hectares of specialty coffee, equivalent to 1.2% of the province's total coffee area. The target for the period 2026-2030 is to develop approximately 2,300 hectares of specialty coffee, equivalent to 2.4% of the province's total coffee area.

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