Prices continue to increase, coffee exports "aim" for 6 billion USD by 2030

Robusta coffee exports continue to flourish Coffee exports: What solutions to achieve a turnover of 4 billion USD in 2023?

Vietnam Commodity Exchange (MXV) informed that coffee prices have been continuously increasing recently, especially Robusta coffee prices - the coffee variety that accounts for a high proportion in Vietnam.

Giá liên tục tăng, xuất khẩu cà phê “ngắm đích” 6 tỷ USD năm 2030

Coffee prices have been rising steadily in recent times.

In the week of August 21-27 alone, the prices of both coffee products also recorded an improvement with an increase of 2.10% for Arabica and 3.13% for Robusta, respectively. Despite the availability of coffee supplies in Brazil, low coffee inventories for both products have created support for price increases.

Specifically, the current standard Arabica inventory on the Intercontinental Commodity Exchange (ICE) is recorded at 512,753 60kg bags, the lowest level recorded in the past 9 months and extending the decline in this data to the 6th consecutive month. Along with that, Robusta inventory on the ICE also decreased to 34,080 tons, a record low recorded since 2016.

Coffee inventories continue to fall and create record lows, making the market worried about the ability to ensure supply in the market, even though coffee is available in Brazil.

Furthermore, the strengthening of the Brazilian currency over the past week has caused the USD/Brazil Real exchange rate to fall by nearly 2%. The falling exchange rate differential has also somewhat limited the need for Brazilian farmers to boost sales.

This week, investors need to continue to monitor supply issues in major producing countries such as Brazil and Vietnam.

Regarding Vietnamese coffee exports, along with the increase in world prices, according to the Ministry of Industry and Trade , the average coffee export price in the first 7 months of this year reached 2,828 USD/ton, an increase of more than 500 USD/ton compared to the same period last year.

According to data from the General Department of Vietnam Customs, from the beginning of the year to August 15, our country exported a total of 1.54 million tons of coffee with a turnover of 2.81 billion USD, down 20% in volume but up nearly 5% in value due to high export prices.

With the above results, some experts in the coffee industry predict that if the export volume in the last months of the year is equal to the same period last year and the export price is equal to the first months of the year, the total coffee export volume for the year will reach about 1.718 million tons; coffee export turnover will reach 4.2 billion USD - a record high ever.

Up to now, Vietnamese coffee products have been present in 37 major markets, of which 27 markets have reached over 10 million USD, especially 8 markets have reached over 100 million USD.

To achieve the goal of striving to achieve an export turnover of 6 billion USD by 2030, and at the same time to increase the added value of Vietnamese coffee products, according to the Import-Export Department - Ministry of Industry and Trade, the coffee industry needs to be given synchronous attention with comprehensive solutions.

Specifically, it is necessary to promote the effective restructuring of the coffee industry, build concentrated and specialized growing areas associated with the development of the processing industry, apply high-tech advances, promote the linkage of raw material areas with deep processing facilities and factories to create a stable source of goods in terms of quality and quantity, meeting market requirements.

Along with improving product quality, branding must be given more attention and care, in which businesses are primarily responsible for building their own brands. Businesses need to survey market demand in areas including market share - taste - quality - price, thereby determining the appropriate proportion of processed products (what percentage of raw products; % of refined products) to orient product development, build promotion, marketing and brand positioning strategies appropriate to their capabilities.

Regarding trade promotion, Vietnamese coffee exporting enterprises need to focus on recruiting and training staff with foreign language and professional qualifications; proactively participating in trade promotion programs and activities organized by ministries, branches and associations; attending international fairs and exhibitions both domestically and internationally to introduce products and seek partners...

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