Vietnamese coffee wins big

Coffee export turnover in the 2023-2024 crop year will reach 5.43 billion USD, the Vietnam Coffee and Cocoa Association said, affirming that this is the highest coffee export value ever.

Export volume decreased, value increased

Report on export turnover Vietnamese coffee The 2023-2024 crop year (from October 2023 to October 2024) of the Vietnam Coffee and Cocoa Association (VICOFA) stated that Vietnam exported about 1.46 million tons of coffee, down more than 12.1% compared to the 2022-2023 crop year.

According to VICOFA, although the amount coffee Exports decreased but value still increased sharply by more than 33%, the reason is Coffee prices have increased. Thanks to that, coffee exports last year contributed more than 5.4 billion USD to Vietnam's export turnover.

In the past crop year, Vietnamese coffee prices have continuously reached their peak, reaching the highest level in the past 30 years. On October 30, according to a survey by Tien Phong reporters, raw coffee prices in the Central Highlands were at 105-109 million VND/ton. Meanwhile, on October 30, 2023, the highest raw coffee price here was only 58-59 million VND/ton.

Coffee exports set a record, reaching 5.43 billion USD. Illustrative photo.

VICOFA forecasts that Vietnamese coffee prices in the 2024-2025 crop year will continue to remain high.

According to data from the General Department of Customs, Vietnam's coffee exports in the first half of October this year reached 21,500 tons, with a turnover of 125.8 million USD, up 0.4% in volume and 7.5% in value compared to the first half of September; compared to the first half of October 2023, it increased by more than 20% in volume and 98% in value.

Export market is volatile

In spite of coffee export turnover Vietnam's coffee output is on the decline despite a sharp increase.

Mr. Nguyen Nam Hai - Chairman of VICOFA - said: "Coffee acreage is increasingly shrinking due to low coffee prices in previous years, affecting people's income, so people have switched to other crops. It is very difficult to increase acreage and increase coffee output in the coming time. We should find a suitable solution for long-term development and cannot rely too much on the market."

Coffee prices have increased recently. Illustrative photo.

Recently, world coffee prices have increased due to many reasons, including the impact of climate change and the El Nino phenomenon causing drought across coffee growing regions around the world, leading to a decrease in supply.

In addition, military conflicts around the world also increase transportation costs and many other costs in export. In addition, many financial speculators in the world choose coffee to speculate, which also has a great impact on the price of this commodity.

According to Mr. Nguyen Nam Hai, the important factor causing the increase in coffee prices is the EU's anti-deforestation regulation (EUDR). Currently, Vietnamese coffee has been exported to over 80 countries and territories around the world.

The European Deforestation Regulation (EUDR) states that from December 30, companies cannot export certain agricultural products (including coffee) to this market without proving that their products are not linked to deforestation. However, for small companies, the EUDR has been delayed until July 2025. Therefore, many European businesses are actively buying coffee.

In the coming time, this regulation will have a significant impact on Vietnam's coffee export market.

Source