Coffee Exports from Vietnam Soar in First Quarter of 2024
According to preliminary statistics from the General Department of Customs, Vietnam’s coffee exports in March 2024 saw a 17.7% increase in volume and a 27.1% increase in value compared to February 2024. The price also increased by 8%, reaching 188,972 tons, equivalent to 671.83 million USD, with an average price of 3,555 USD/ton.
Overall, in the first three months of 2024, coffee exports increased by 6% in volume, 56.9% in value, and 48% in price compared to the first three months of 2023, reaching 585,696 tons, equivalent to nearly 1.93 billion USD, with an average price of 3,288.8 USD/ton.
Not only export prices, but domestic coffee prices have also increased continuously without any signs of cooling down. Currently, the average coffee price in the Central Highlands provinces is 132,000 VND/kg, with the highest price in Dak Nong province at 132,200 VND/kg.
Vietnam’s coffee exports were highest to Germany in the first three months of 2024, accounting for over 12.4% of the total volume and 11.9% of the total value of coffee exports from the country, reaching 72,377 tons, equivalent to 229.32 million USD, with a price of 3,168.4 USD/ton. This represents a 6.6% decrease in volume, a 46.8% increase in value, and a 57.2% increase in price compared to the first three months of 2023. In March 2024 alone, exports reached 21,736 tons, equivalent to 73.77 million USD, with an 8.3% decrease in volume and a 3.5% decrease in value compared to February 2024.
Coffee exports to Italy ranked second, increasing by 20.6% in volume, 77.6% in value, and 47.2% in price compared to the first three months of 2023, reaching 64,627 tons, equivalent to 196.07 million USD, with a price of 3,033.8 USD/ton. This accounts for 11% of the total volume and 10.2% of the total value of coffee exports from the country.
Coffee exports to Spain increased by 65.5% in volume and 148% in value compared to the first three months of 2023, reaching 44,619 tons, equivalent to 150.3 million USD, accounting for nearly 8% of the total volume and value.
Apart from the top three, many markets have also witnessed triple-digit growth, such as Indonesia, the Philippines, etc. Notably, Thailand is actively purchasing coffee from Vietnam.
Specifically, in March, Vietnam exported 6,149 tons of coffee to Thailand, equivalent to 5.36 million USD, representing a 130% increase in volume and a 96% increase in value compared to March 2023.
In the first quarter, Thailand spent 38.8 million USD to import 11,638 tons of coffee from Vietnam, indicating a 234.84% increase in volume and a 144.83% increase in value. In contrast to the overall market, the average export price reached 3,334 USD/ton, a 26.8% decrease compared to the same period last year.
A prolonged drought has affected coffee-growing regions not only in Vietnam but also globally due to the El Niño phenomenon. This has negatively impacted coffee yields and production, particularly Robusta coffee.
Additionally, domestic coffee prices have increased recently because Vietnam is currently the only country harvesting coffee. Indonesia harvests around April-May, and Brazil harvests around July.
Furthermore, ongoing military conflicts worldwide, especially in the Red Sea region, have driven up the freight costs for coffee to Europe, the world’s largest coffee-consuming region. Notably, in the international financial market, many investors tend to choose coffee (after oil and gold) for investment, leading to a sharp increase in coffee prices.
Given the concerns about global supply in general and in Vietnam in particular, domestic coffee prices are highly likely to reach a new historic level of 150,000 VND/kg.
