| Coffee industry improves capacity to meet EU market requirements Supply pressure, coffee export prices continue to skyrocket by nearly 3.9% |
This is the third consecutive increase for these two commodities, pushing coffee prices to a six-month high. Concerns that hot weather in Brazil will reduce coffee production in the 2024/25 crop year continue to be the main factor supporting prices.
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| Coffee export prices maintain strong growth momentum |
Brazil's National Meteorological Institute (Inmet) has issued a special warning of a heat wave exceeding 40 degrees Celsius in the next few days, which will cover the main coffee growing regions for at least four days.
In addition, Robusta inventories on the Intercontinental European Exchange (ICE-EU) were only at 34,720 tons, gradually decreasing to a historic low at the end of August 2023, with 33,630 tons, also contributing to supporting price increases in yesterday's session.
In the domestic market, recorded this morning (December 14), the price of green coffee beans in the Central Highlands and Southern provinces fluctuated between 63,600 - 64,400 VND/kg, an increase compared to yesterday.
At the beginning of the 2023/2024 crop year, the price of Vietnamese coffee beans was around 60,000 VND/kg. This is unprecedented in the history of the Vietnamese coffee industry. With coffee prices in Vietnam forecast to continue to rise, an export turnover of 4.5 - 5 billion USD in 2024 is within reach.
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| Right at the beginning of the 2023/2024 crop year, the price of Vietnamese green coffee was around 60,000 VND/kg (Photo: Dan Toc Phat Trien Newspaper) |
However, to achieve the export target of 6 billion USD by 2030, while increasing the added value of Vietnamese coffee products, the coffee industry needs to be synchronously concerned with comprehensive solutions, including boosting the output and quality of raw coffee growing areas, while increasing the rate of deep processing.
According to the Department of Crop Production, the country currently has more than 710,000 hectares of coffee. However, less than a quarter of the area has been certified for sustainable production, with international standard certifications.
According to businesses, localities need to plan key coffee growing areas; promote replanting, and apply sustainable coffee production processes with VietGAP, 4C, Rainforest, and organic certifications to meet the strict export standards of today's markets.
In the context of a global shortage of supply, pushing prices up, Vietnam is entering its harvest season, the coffee industry expects to have a bustling business season at the end of the year.
In particular, towards sustainable export, Vietnam's processed coffee exports have increased significantly. Roasted and instant coffee exports reached about 90,000 tons, accounting for about 5.4% of total coffee exports in the last crop year. The turnover was about 510 million USD, accounting for about 12.5%.
Vietnamese coffee is now available in more than 70 countries and territories. Vietnam is the second largest coffee exporter in the world.
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