Vietnam’s iced milk coffee is ranked second among the 10 best coffee in the world, which is an opportunity to promote and increase coffee exports.

According to the Vietnam Commodity Exchange (MXV), at the end of the trading session on November 3, coffee prices continued to increase. In particular, the Arabica price increased by 3.36% and the Robusta price by 1.89% higher than the reference. Inventories on the ICE Exchange and Dollar Index have decreased strongly, creating dual support for the prices.

Vietnam’s iced milk coffee is ranked second among the 10 best coffee in the world.

In the closing report of the session on November 3, Arabica inventories meeting the standard on the ICE-US Exchange decreased to the lowest level in more than 24 years with 360,009 60 kg bags. Inventory is a component of the total global coffee supply. As a result, the decline in the inventory has raised concerns about the ability to meet the demand for coffee in the short term although exports are promoted in some leading producing countries.

Along with that, the Dollar Index continued to decrease strongly by 1.04%, causing the USD/BRL to lose 1.06%. The downward exchange rate difference makes farmers no longer excited about selling coffee. This contributed to making the prices increase in yesterday’s session.

In terms of output, in 2022, Vietnam has an output of more than 1.8 million tons, ranking second in the world only after Brazil. Vietnam is also the country with the largest Robusta coffee production in the world.

In the third quarter of 2023, coffee prices in the domestic market remained high due to scarce supply. However, in October 2023, coffee prices decreased sharply compared to the end of September 2023. Currently, domestic coffee prices have decreased by more than 10,000 VND/kg compared to the record high recorded on September 19.

Regarding exports, according to the Import-Export Department – Ministry of Industry and Trade, the export price of Robusta coffee fluctuated sharply in the third quarter. Prices maintained quarterly lows in August and early September. In October, the price of Robusta coffee maintained a low, then tended to recover quickly and strongly at the end of the month.

Vietnam’s coffee exports continue to prosper.

According to statistics from the General Department of Customs, Vietnam’s coffee exports in the third quarter of 2023 reached 244.48 thousand tons, worth 735 million USD. This result was down 46.1% in volume and 36.7% in value compared to the second quarter of 2023. This was also down 25.3% in volume and 4.6% in value compared to the third quarter of 2022.

In recent months, among the coffee import markets, the US ranked third in terms of market share in the first 9 months of the year with an output of 92,107 tons, worth 218 million USD. This is a slight increase of 3% in volume and 2% in value. However, the export price decreased slightly by 1% at 2,377 USD/ton.

It is forecast that in the fourth quarter of 2023, Vietnam’s coffee exports will increase again according to cyclical factors. Abundant domestic supply due to the coffee crop 2023/2024 took place in the fourth quarter of 2023 and the first quarter of 2024.

At the beginning of the year, Taste Atlas – a travel site about traditional cuisine and known as the “food map of the world” released a ranking of the 10 best coffee in the world. Notably, Vietnam’s iced milk coffee is ranked second among 10 types of coffee. This is an opportunity to increase coffee exports in the near future./.