The coffee industry faces pressure from global uncertainties and rising inflation in major markets after achieving a record export value in the 2021-22 crop year.
Statistics from the General Department of Customs show that Viet Nam exported 1.42 million tonnes of coffee in the first ten months of this year, a rise of 10.8 per cent over the same period last year.
Export revenue increased strongly by 33.7 per cent to reach US$3.22 billion. Coffee export prices averaged $2,283 per tonne, up by 21.2 per cent.
Viet Nam had a good coffee crop with strong prices in 2021-22, according to the Ministry of Agriculture and Rural Development.
Statistics from the Viet Nam Coffee Cocoa Association (VICOFA) show that a total of 1.68 million tonnes of coffee were exported in the 2021-22 crop, worth more than $3.9 billion, a record revenue so far.
Viet Nam mainly exported robusta in the 2021-22 crop with a volume of 1.5 million tonnes, worth $2.97 billion.
Germany was the largest coffee export market of Viet Nam with 216,000 tonnes, followed by Italy with 139,000 tonnes, the US with 126,000 tonnes, Belgium with 120,000 tonnes and Japan with 111,300 tonnes.
Instant and ground coffee exports totalled 92,000 tonnes, worth $598.2 million in the 2021-22 crop.
VICOFA President Nguyen Nam Hai said that Viet Nam is gradually increasing the export of processed coffee and reducing dependence on raw coffee exports, opening positive prospects for the coffee industry.
According to International Coffee Organisation (ICO), global coffee exports in the 2021-22 period, which ran from October 2021 to September 2022, reached 129 million bags (60kg per bag), a drop of 0.4 per cent over the previous crop.
Arabica exports from Brazil and Colombia declined, while robusta increased by 2.6 per cent to 42.2 million bags.
Viet Nam and India were two countries which saw considerable growth in coffee export in the 2021-22 crop. Green coffee bean export from Viet Nam increased by 15.1 per cent to 26.8 million bags, while India increased by 26.1 per cent to five million bags.
Under pressure
VICOFA said that the 2022-23 crop was entering the harvest season in the context of global uncertainties, rising inflation risk and unstable logistics, which were creating pressure on the coffee industry.
Global coffee prices were dropping from early November as better weather helped replenish dwindling supplies.
According to a story published by multimedia financial services company Motley Fool, Brazil expects its coffee production to grow by at least 8 per cent next year. This year, it had seen a good start to the season with plenty of rain already fallen and more forecast to come.
Viet Nam, the world’s second-largest coffee exporter, expects a healthy crop.
ICO forecast Brazil and Viet Nam would supply 100 million bags or meet 60 per cent of the global coffee consumption demand in the 2022-23 crop.
In the domestic market, coffee prices dropped to around VND38,900-39,400 per kilogramme as supply was expected to increase as the harvest season approached. — VNS