Reaching the top of exports, why does Vietnam import coffee?

According to the General Statistics Office, in July, coffee exports reached 70,000 tons, down nearly 36% compared to the same period in 2023. In the first 7 months of 2024, Vietnam's coffee exports reached 964,000 tons, down nearly 14% compared to the same period last year. Export turnover reached 3.54 billion USD, up 31% over the same period last year. The high export turnover despite the decrease in volume is due to coffee prices having remained consistently high since the beginning of the year.

Coffee imports are mainly for processing (Illustration photo)

To meet export and domestic consumption needs, businesses are forced to import coffee from neighboring countries such as Indonesia, Laos, Thailand, Brazil, Belgium, etc. This was predicted at the end of April 2024 at the meeting of the Vietnam Coffee and Cocoa Association.

The Vietnam Coffee and Cocoa Association explains that Vietnam has imported coffee for many years, as well as other agricultural products (rice, cashew nuts, etc.) from other countries, mainly for processing and export. For example, coffee beans are imported from countries with lower prices, or from coffee types that Vietnam can grow less due to the climate and soil, such as Arabica coffee. Vietnam imports this type of coffee from Laos because their prices are lower than in Vietnam. Arabica coffee is only grown in a few areas in the country, so the quantity is limited, while this type is of high quality, so it must be imported for consumption.

As for processed coffee, in recent years, the domestic coffee chain system has developed, many foreign coffee brands are present and open chains throughout major cities in Vietnam. Therefore, these coffee chain businesses mostly import processed coffee such as roasted and ground coffee and instant coffee.

In terms of exports, according to the Ministry of Agriculture and Rural Development, coffee is one of the items with the highest trade surplus at 3.43 billion USD and the highest growth rate, reaching 32% over the same period in 2023 after the first 7 months of 2024.

Globally, coffee prices, especially Arabica coffee prices, continue to decline due to pressure from the progress of the new crop coffee harvest in Brazil.

Brazil had completed 81% of its 2024/25 coffee harvest as of July 23, up from 74% at the same time last year and ahead of the five-year average of 77%. Of this, the amount of certified graded Arabica coffee held in New York rose by 2,495 bags on the last trading day of the week to 814,801 bags.

For Arabica coffee, Brazil has completed 75% of the harvest, faster than the 65% at the same time last year and faster than the 5-year average of 69%. For Robusta coffee, 95% of the new crop has been harvested, faster than the 89% at the same time last year and faster than the 5-year average of 93%.

Source: https://congthuong.vn/dat-top-dau-xuat-khau-viet-nam-nhap-khau-ca-phe-de-lam-gi-336134.html