Coffee exports to reach 1.2 million tons in first 8 months of 2023-2024 crop year

According to the Ministry of Agriculture and Rural Development, the amount of coffee remaining in the domestic market is very small. The coffee output of the upcoming crop is forecast to continue to decrease by about 20% due to the recent prolonged heat wave leading to severe drought in the Central Highlands.

In the first 8 months of the 2023-2024 crop year (October 2023 to May 2024), Vietnam exported nearly 1.2 million tons of coffee, equivalent to 80% of the current crop year's output and down 7% compared to the same period last crop year. According to estimated output, the domestic coffee supply (excluding inventory) is only about 300,000 tons left for export before entering the new crop year.

Vietnam exported nearly 1.2 million tons of coffee.

According to the Vietnam Coffee and Cocoa Association (VICOFA), the domestic coffee supply is almost exhausted, and the inventories of businesses and farmers are not large. Therefore, the export volume from now until the end of September 2024 will gradually decrease even though coffee prices are at a record high.

According to coffee industry experts, in the coming time, the price of this type of bean will likely fluctuate less strongly than in the first months of this year but will still maintain a high level. The reason is that Brazil is in the peak harvest season, while in our country, it will be harvest season in October.

The Ministry of Agriculture and Rural Development predicts that with our country's coffee output, this year, the export turnover of this industry will reach over 5 billion USD - the highest level in history.

Coffee has long been one of Vietnam's key exports, bringing in an important source of foreign currency for the country. According to data from the General Department of Customs, in the first 6 months of 2024, Vietnam exported 893,820 tons of coffee, earning 3.1 billion USD. Although the export volume decreased by 11.4% compared to the same period last year, the export value increased by 33.2%, reflecting a strong increase in coffee prices on the international market.

By the end of the second quarter of 2024, Vietnam's average coffee export price reached 3,569.3 USD/ton, up 50% over the same period last year. This is a positive signal showing that the value of Vietnamese products is being recognized and appreciated by the international market.

In the derivatives market, there was another notable development on the price list of industrial raw materials yesterday. At the close of trading on July 16 (early morning of July 17), Robusta coffee prices fell slightly by 0.24%, extending the weakening streak of the first session of the week. Meanwhile, Arabica coffee prices recovered 0.6% compared to the reference. The stronger Real narrowed the gap with the USD, thereby supporting prices. The Dollar Index rose slightly yesterday, while the domestic Brazilian Real strengthened, causing the USD/BRL exchange rate to fall by 0.3%. The narrowing exchange rate gap could limit the demand for coffee from Brazilian farmers. This raises concerns that sales will continue to be below the multi-year average and export activities will be narrowed.

Source: https://congthuong.vn/luong-xuat-khau-ca-phe-dat-12-trieu-tan-trong-8-thang-dau-nien-vu-2023-2024-332789.html