Since the beginning of the year, the export price of coffee has continuously set new records, increasing the export value of this potential item.
Along with the global coffee market, coffee prices in Vietnam have risen sharply since the beginning of the year, reaching records compared to the same period last year, mainly due to concerns about supply shortages.
The Vietnam Coffee-Cocoa Association (VICOFA) reported that Vietnam’s coffee exports exceeded 2 billion USD in just 2.5 months. In the first 15 days of March, when coffee prices on the world market rose sharply, the export value of this product from Vietnam also increased significantly.
Vietnam’s coffee exports reached over 2.2 billion USD.
Especially, the export price of Arabica coffee reached 6,805 USD/ton, the highest ever. Thanks to high prices, the volume of coffee exports reached 5,661 tons, an increase of 58% in quantity and a value of over 38.5 million USD, up 88% compared to the same period last year.
Meanwhile, the main export product of Vietnamese coffee, Robusta, has an average export price of 5,392 USD/ton and an export volume of 73,572 tons, with a revenue of nearly 397 million USD, a decrease of 20.6% in volume but an increase of 31.6% in value compared to the same period last year.
Coffee prices have increased strongly in the domestic market due to various factors, but mainly because supply is lower than demand. In Vietnam, many farmers and cooperative members are now cautious. They do not sell in bulk immediately after the harvest as they used to, so the supply to the market is not abundant.
In addition, the increase in domestic coffee prices is partly due to the limited global supply. According to the latest report from the International Coffee Organization (ICO), global coffee production for the 2023/24 season has decreased by 20% compared to the initial forecast, particularly in major producing countries like Vietnam and Brazil. Along with that, the food and beverage industry in major markets such as the United States, Europe, and China is increasingly developing, driving coffee imports.
The coffee harvest season is approaching, and the price is expected to fluctuate. Meanwhile, Arabica coffee prices are likely to continue rising, while Robusta prices may stabilize or slightly decrease due to supply pressures.
With strong development potential, the Vietnamese coffee industry is aiming for an ambitious goal to achieve annual revenue of 20 billion USD in the future. To achieve that figure, Vietnam has built many directions aimed at developing sustainable coffee exports and enhancing product value. One of the important strategies is to establish standardized raw material regions.
Specifically, the Ministry of Industry and Trade is implementing a project to establish a coffee raw material region in the Central Highlands with an area of 19,700 hectares, including the provinces of Gia Lai, Dak Lak, Kon Tum, and Dak Nong. The goal is to build a high-quality coffee production area, applying advanced technology and ensuring sustainable links between cooperatives and enterprises.