In the first 9 months of 2024, coffee exports set a new record when reaching 4.37 billion USD. This figure has exceeded the total export turnover of the whole year 2023.
Vietnam’s export turnover of coffee in the first 9 months reached a record high. According to Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee – Cocoa Association (VICOFA), the demand for Robusta coffee in the world is increasing sharply while the supply is decreasing, causing the price to continuously increase to a record.
“Robusta coffee is the key export item of Vietnam, accounting for 94% of the growing area. Therefore, when the price of Robusta coffee increased to the highest level ever, the Vietnamese coffee export market also benefited. In fact, although export output decreased, turnover increased,” Mr. Hai analyzed.
Previously, the price of Robusta coffee was 1/3 or 1/2 the price of Arabica coffee. However, in recent times, it has surpassed Arabica by nearly 1,000 USD/ton. This has never happened before. It is mainly due to the sharp decrease in the supply of Robusta caused by climate change. In the coming time, coffee prices may continue to increase because the world supply is decreasing due to the weather.
The export turnover of coffee in the first 9 months of the year exceeded that of 2023.
According to data from the Ministry of Agriculture and Rural Development, the export price of coffee recently has continuously increased. In September, the average price reached 5,469 USD/ton, the highest level ever.
In 9 months, each ton of exported coffee costs 3,897 USD/ton, up 56% over the same period last year. Coffee became the agricultural product with the strongest price increase among Vietnam’s key export items. As a result, Vietnam earned 4.37 billion USD from this product in the first 9 months of the year. It was an increase of 40% over the same period in 2023 and exceeded the turnover of the whole year 2023.
In the first 9 months of 2024, coffee export turnover set the highest record ever. Experts said that this figure will continue to increase, creating new records when Vietnam is entering the harvest in the last 3 months of the year.
According to the VICOFA, in the 2024-2025 crop, Vietnam faces many challenges due to unfavorable weather conditions, especially the El Nino that causes drought and pests. Coffee production is expected to decrease by 5-15% compared to last year, causing the total production to continue to decline.
Meanwhile, the Ministry of Agriculture and Rural Development is optimistic that this year’s agricultural export turnover may exceed 5 billion USD, even reaching 6 billion USD thanks to high prices.
At the present time, the coffee crop 2024-2025 starts in Vietnam (from October 2024 to September 2025). In the early days of October, coffee prices in the Central Highlands are tending to decrease compared to the end of September.
According to experts, coffee prices decreased in the early days of October due to the European Commission’s (EC) proposal to postpone for a year the ban on imports of deforestation-related items (EUDR).
Although the price has decreased compared to the end of September, it remains high at nearly 120,000 VND/kg. Compared to the beginning of October 2023, the current price of coffee in the Central Highlands is nearly 2 times higher. Thus, this is the first time in Vietnam the coffee price at the beginning of the crop is more than 100,000 VND/kg.