In the first 8 months of 2023, coffee exports will reach 1.2 million tons.
31 August 2023
Coffee exports in August in our country were estimated at 90,000 tons, down 20.4% from 113,039 tonnes in the same period a year earlier, according to the General Statistics Office (GSO).
Vietnam’s accumulated coffee exports in the first 8 months of 2023 are estimated at 1.2 million tons, down 4.9% compared to the total amount of coffee exported in the same period last year.
Despite the weakening volume, export coffee prices, especially Robusta coffee – the main coffee variety of Vietnam recorded strong growth over the past time. Vietnam Commodity Exchange (MXV) information, ending the trading session on 29/8 (morning 30/8, Vietnam time), Robusta coffee prices also recorded an increase of 0.49% in yesterday’s session, bringing the current price to $ 2,449 / ton. Vietnam’s dismal coffee exports have raised fears of a global supply shortage.
In particular, the average export price of coffee in the first 7 months of this year reached 2,828 USD / ton, up more than 500 USD / ton over the same period last year. This is a record high last time.
Besides, Arabica coffee prices reversed slightly up 0.23%. MXV said the fact that the Dollar Index recorded a decline of 0.51% in yesterday’s session dragged down the USD/Brazil Real exchange rate by 0.43%. So, the exchange rate differential between the currencies of the two main importing countries and exports narrowed, prompting Brazilian farmers to limit sales by earning fewer reals.
Meanwhile, as of August 29, ICE benchmark Arabica inventories have fallen sharply to 500,931 60kg bags, the lowest level in more than 9 months.
Regarding the Vietnamese coffee market, Our country’s coffee exports reached about 1.78 million tons, earning 4.06 billion USD in 2022, up 13.8% in volume and 32% in value compared to 2021. This is also the first year in history that coffee exports surpassed the $4 billion mark. According to data from the International Coffee Organization, Vietnam is the world’s second-largest country in terms of coffee export market share (February 2021-January 2022), only behind Brazil.
According to data from the Crop Production Department – Ministry of Agriculture and Rural Development, the total coffee area of Vietnam by the end of 2022 will reach 710.66 thousand hectares. Vietnamese coffee is grown in 19 provinces across the country but mainly concentrated in 5 provinces of the Central Highlands, accounting for 91.2% of the total area of the country.
Compared with other coffee-producing countries in the world, Vietnam’s coffee area is only sixth after other countries: Brazil with a total area of nearly 1.9 million hectares, Indonesia with a total area of over 1.2 million hectares, and Colombia. and Ethiopia over 800 thousand hectares, and Ivory Coast nearly 800 thousand hectares.
According to the Vietnam Coffee and Cocoa Association (VICOFA), the recent continuous increase in coffee prices is due to insufficient supply and demand, and the weather is one of the main reasons. It is forecasted that from now until the end of the year, coffee exports will still be favorable when the demand increases while the source of goods is not improved.
Vietnam’s coffee industry is aiming for an export turnover of 6 billion USD by 2030.
To develop a sustainable coffee material area, the kick-off ceremony for the construction and installation of component 5 “Investment in infrastructure to support cooperatives in developing high-quality coffee material areas in the Central Highlands” has just been held place in Gia Lai province.
The goal of the project is to invest in forming a centralized and modern commodity-scale coffee raw material production area, applying advanced technology based on sustainable links between cooperatives and businesses. processing and exporting to promote quickly, effectively, and sustainably the process of agricultural restructuring and new rural construction in Gia Lai and Dak Lak provinces; develop and improve the role and performance of agricultural cooperatives in the coffee value chain; meet the requirements in terms of quality and reduce the cost of coffee raw materials for processing and export; increasing income contributes to improving the lives of local people.
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