| Due to scarce supply, coffee exports will decrease month by month. Coffee exports reached 1.2 million tons in the first 8 months of the 2023-2024 crop year. |
Statistics from the General Department of Customs show that in the first half of July 2024, coffee exports reached 32,041 tons, down 40% over the same period.
However, the average export price of coffee increased by 75% over the same period, reaching 4,944 USD/ton, contributing to bringing the export turnover of this item to 158 million USD, an increase of 4.1% over the same period.
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| Coffee export prices are rising due to reduced supply (Photo: Nestle Vietnam) |
In the world , at the ICE Futures Europe exchange, the price of Robusta coffee for September 2024 delivery increased by 1.14%, reaching 4,530 USD/ton.
In contrast, on the ICE Futures US exchange, the price of Arabica coffee for September 2024 delivery decreased by 1.12% to 238.2 US cents/lb.
Notably, China is increasing its coffee imports from Vietnam in the first half of this year. Data from the Chinese Customs Administration shows that in the first five months of 2024, China imported over 109,850 tons of coffee, worth 490 million USD, up 155% in volume and 104% in value over the same period last year. At the same time, China increased its coffee imports from Vietnam by 25% in volume and 80.4% in value over the same period last year, reaching 9,780 tons and worth 31.63 million USD.
With the positive developments in the world coffee price increase, Vietnam's coffee export industry is facing many opportunities. In addition, the increase in coffee prices also creates conditions for businesses to improve product quality, invest in processing technology, and diversify products to increase added value. Taking advantage of the opportunity, many businesses have focused on developing deeply processed coffee products such as roasted coffee beans, aromatic coffee, and filter bag coffee to increase export value.
Although coffee prices have been increasing continuously, the amount of coffee available to the people is not much. According to the Vietnam Industry and Trade Information Center (VITIC), transactions at the beginning of the week seem to have been less quiet. The reason is that currently, the amount of coffee in stock is only about 200,000 tons while Vietnam still has more than 3 months to go before the harvest season. To meet export orders and serve domestic demand, businesses may have to increase imports from neighboring countries such as Indonesia.
Mr. Nguyen Nam Hai - Chairman of the Vietnam Coffee and Cocoa Association (VICOFA) said that the impact of climate change has caused drought not only in the Central Highlands (Vietnam's key coffee growing region) but also around the world, so the total coffee supply in the world has decreased sharply, pushing coffee prices to a record high. It is forecasted that Vietnam's coffee export volume in July - September will gradually decrease, due to the gradual depletion of supply. We have to wait until October and November, when the new coffee harvest season begins, for Vietnam's coffee supply to increase again.
In addition to the supply issue, VICOFA representatives also said that the coffee industry is facing fierce competition from other producing countries. Maintaining stable quality and output is a key factor to maintain its position in the world market. To make the most of the opportunity from high coffee prices, experts said that the Vietnamese coffee industry needs to build a sustainable development strategy, focusing on improving product quality and expanding export markets.
Source: https://congthuong.vn/gia-xuat-khau-ca-phe-tang-vot-dat-gan-5000-usdtan-333911.html
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