According to the data from the General Department of Customs, in the first half of February, the country exported nearly 57,000 tons of coffee, with a turnover of $184.4 million. From the beginning of the year to February 15, the volume of coffee exports reached nearly 295,000 tons, with a turnover of $911 million.
Compared to the same period last year, the volume of coffee exports increased by only 16.7% but the turnover increased by a staggering 66.8%. In addition, the average export price of coffee reached nearly $3,100 per ton, an increase of nearly 43% compared to the same period last year.
The main coffee export markets of Vietnam are Europe, the United States, China, Russia, and Indonesia… Among them, Europe is the largest coffee importing market for Vietnam with 87,700 tons, with a turnover of over $263 million; followed by countries like Germany, Italy, Spain…
Coffee is currently the third highest agricultural export item in terms of turnover, only after wood and seafood. However, the export turnover value of coffee is still $22 million lower than that of seafood.
A report by the International Coffee Organization (ICO) shows that the price of Robusta coffee has reached its highest level in 30 years due to concerns about the supply source in Vietnam.
After Tet holiday, the price of coffee beans at the farm level in the Central Highlands provinces continued to increase sharply and for the first time touched a record high of 80,000 VND/kg. Currently, the domestic market price of coffee has reached its 30-year high, surpassing 83,000 VND/kg, an increase of 70% compared to the same period last year.
The price of coffee is at its highest level in 30 years. In the picture, a coffee plantation in Da Lat City, Lam Dong Province. Photo by Dy Khoa.
Explaining the continuous strong increase in coffee prices, the Vietnam Cocoa Coffee Association (VICOFA) believes that due to the shortage of supply in the market, Vietnam is almost “a market on its own”.
In addition, the EU’s regulation that coffee entering the market must comply with the Forest Law Enforcement, Governance, and Trade (FLEGT) is also a factor affecting coffee prices as many countries have not had time to prepare procedures to meet the requirements.
VICOFA predicts that with this situation, in 2024, coffee exports can reach from $4.5 – $5 billion. This will be a new record year for coffee export turnover of Vietnam.
In 2023, Vietnam exported more than 1.62 million tons of coffee, with a turnover of over $4.24 billion, a decrease of 8.7% in volume but an increase of 4.6% in turnover compared to 2022. Vietnam is currently the second largest coffee exporter in the world.
This item is considered one of Vietnam’s “export kings,” ranking third in terms of export turnover in the agricultural group.
As of February 25, on the London trading floor, the price of Robusta coffee futures contract for March 2024 was at $3,047 per ton, a decrease of 4.00%, equivalent to a decrease of $127 per ton compared to the previous closing.
Meanwhile, the price of Arabica coffee on the New York futures market for March 2024 is currently 180.30 US cents/lb, a further decrease of 1.56%, equivalent to a decrease of 2.85 US cents/lb compared to the previous closing.
Dy Khoa
