Export coffee prices increased 2.5 times
According to the Ministry of Agriculture and Rural Development (MARD), in the first 7 months of 2024, Vietnam exported 964 thousand tons of coffee, reaching a turnover of 3.54 billion USD. It is worth mentioning that, despite the decrease in quantity, the value of xau xuat ca phe coffee exports in the first 7 months increased by 30.9%.
According to the Vietnam Coffee and Cocoa Association (VICOFA), the value of coffee exports increased due to the increase in Vietnam's coffee export prices in the world market, especially in major markets. In particular, in Vietnam's major coffee export markets such as Spain, Russia, the US, Indonesia, the Philippines, the Netherlands, China... the import price has increased by about 30% compared to the previous year.
Currently, coffee prices have increased nearly 2.5 times compared to the same period last year. The reason for the increase in coffee export prices is due to increased import demand from countries, but revenue is decreasing, especially since the amount of coffee in the 2023-2024 crop year is currently limited.
According to Mr. Nguyen Nam Hai - Chairman of the Vietnam Coffee - Cocoa Association, the high coffee prices in recent times are due to many factors, including the impact of climate change, the El Nino phenomenon causing drought in coffee growing areas around the world leading to a decrease in supply. In addition to climate factors, military conflicts around the world, tensions in the Red Sea have caused shipping costs and many other costs to increase. In addition, many financial speculators in the world choose coffee (after oil and gold) to speculate, which is also a factor that greatly affects the price of this commodity.
Coffee can join the "Export Club over 5 billion USD"
According to VICOFA, Vietnam currently has only about 148,000 tons of coffee left to export in the remaining 2 months of the 2023-2024 crop year (from August 2024 to the end of September 2024). Meanwhile, the new crop year will not start harvesting until October 2024.
Low supply may push coffee prices on the world market to continue to increase in the coming time.
In addition to price factors, market factors are also favorable. Specifically, in the UK market, the amount of Vietnamese coffee exported to this country has increased.
According to the Import-Export Department (Ministry of Industry and Trade), in June 2024 alone, coffee exports from Vietnam to the UK reached 2.18 thousand tons, worth 9.1 million USD, up 24.4% in volume and 15.1% in value compared to the previous month. Also during this period, the average export price of coffee from Vietnam to the UK reached 4,174 USD/ton, up 49% over the same period last year.
The Ministry of Industry and Trade also forecasts that Vietnam's coffee exports to countries such as Spain, Russia, the US, Indonesia, the Philippines, the Netherlands, China... will continue to be optimistic in the coming time.
With favorable factors in price, market and output, coffee exports in 2024 are forecast to reach a record of 5 billion USD. The coffee industry will contribute to overall economic growth, and coffee will be a valuable export item joining the "over 5 billion USD export club".
According to the Dak Lak Provincial People's Committee, in the context of global coffee fluctuations, Dak Lak province has developed a plan for sustainable coffee development: Not increasing the coffee area outside the planning, focusing on converting ineffective coffee areas and areas without guaranteed water sources to other crops.
In addition, Dak Lak focuses on applying information technology to sustainable coffee management and production; building management software and training human resources to apply information technology in implementing plans, inspecting and supervising sustainable coffee production processes; creating digital maps of tree orchards, updating annual databases on the situation of replanting and improving varieties.
Dak Lak province also has a plan to support funding in registering for expanded protection of coffee products with Buon Ma Thuot geographical indications; Continue to implement quality management, ensure food safety; encourage the business community to apply advanced quality management systems in the world.
