According to the Ministry of Agriculture and Rural Development (MARD), coffee exports in 2023 will reach about 1.72 million tons, earning 4.2 billion USD. This will set a new record in turnover value thanks to an increase of 200 million USD compared to last year’s record turnover.
Coffee exports are heading to a new record.
According to the General Department of Customs, Vietnam’s coffee exports in September 2023 reached 65,000 tons, which was worth 205 million USD, down 23.2% in volume and 20.8% in value compared to August 2023. Compared to September 2022, coffee exports in September 2023 decreased by 32.7% in volume and 12.8% in value.
DECREASE IN VOLUME, INCREASE IN TURNOVER
In the third quarter of 2023, Vietnam exported 259,000 tons of coffee, reaching a turnover of 774 million USD, down 20.8% in volume and up 0.4% in value over the same period last year.
Accumulated in 9 months of 2023, Vietnam’s coffee exports are estimated at 1.266 million tons, worth 3.16 billion USD, down 7.3% in volume but up 1.9% in value over the same period last year. Regarding the type structure, the exports of green coffee decreased compared to the same period in 2022, but the exports of processed coffee increased.
Previously, in 2022, Vietnam earned more than four billion USD from coffee exports for the first time thanks to the third-highest volume of coffee exports in 10 years of 1.78 million tons.
“The average export price of Vietnam’s coffee in September 2023 was 3,151 USD/ton, up 3.2% compared to August 2023 and 29.6% compared to September 2022. In 9 months, the average export price of Vietnam’s coffee reached 2,499 USD/ton, which was up 9.9% over the same period in 2022”.
Ministry of Agriculture and Rural Development
Coffee growers are excited because the prices are good this year.
According to the MARD, because of the increase in coffee exports in 2022, export reserves for 2023 are low. Meanwhile, coffee production in the 2022-2023 crop decreased by 10-15% compared to the 2021-/2022 crop due to unfavorable weather. As a result, coffee exports decreased sharply this year. However, thanks to the 10% increase in export coffee prices compared to the previous year, the export value still went up slightly.
Regarding the domestic coffee market, according to businesses, the price of green coffee in the domestic market this year increased strongly, reaching a 30-year high, exceeding 68,000 VND/kg. Up to now, the price has started to decrease and is fluctuating between 64,200 – 64,600 VND/kg, but this is still a good price range.
According to the Vietnam Cocoa Coffee Association, in addition to the decline in supply compared to demand, the fact that Vietnam’s coffee industry has made efforts to improve the coffee quality is also the reason for the increase in export prices. Over the years, Vietnamese coffee enterprises have changed their farming mindset to sustainable production with certified production processes and product quality if they want to export coffee to other markets.
Coffee is Gia Lai’s main export item with an output of 165,000 tons since the beginning of the year. According to the Department of Agriculture and Agricultural Development of Gia Lai, the province is implementing many solutions to develop high-value coffee towards a sustainable step to 2030.
According to the set goal, Gia Lai will develop a specialty coffee area of about 1,200 ha by 2025. In the period from 2026 to 2030, the province will develop a specialty coffee area of 2,300 ha. In addition, by 2025, the province will strive to achieve over 1,000 ha of specialty Robusta coffee with an output of about 620 tons. This area will increase to 2,300 ha by 2030.
Recently, Gia Lai’s coffee products have been selected to participate in the pilot project “Building a brand and marketing strategy for manufacturers of products with Vietnam’s geographical indications” by the World Intellectual Property Organization (WIPO). This is an opportunity for Gia Lai’s products to have strong progress in the global market.
In the context that the EU shall prohibit the import of coffee grown on land originating from deforestation and causing forest degradation from the end of next year, the Vietnam Cocoa Coffee Association recommends that localities manage people living near forests and prevent deforestation to grow coffee. Currently, the EU is an important coffee consumption market of Vietnam./.