Processed coffee exports increased by 46%

In the first 10 months of 2023, coffee exports reached more than 692 million USD, an increase of 28% over the same period in 2022.

Also according to the Import-Export Department - Ministry of Industry and Trade, in October and 10 months of 2023, Vietnam's Robusta and Arabica coffee exports decreased compared to the same period in 2022, but processed coffee exports increased sharply.

Processed coffee exports increase sharply

In October 2023, Robusta coffee exports reached approximately 27.2 thousand tons, worth 66.86 million USD, down 61.6% in volume and 54.4% in value compared to October 2022. In the first 10 months of 2023, Robusta coffee exports reached 1.13 million tons, worth 2.45 billion USD, down 12.1% in volume and 4.3% in value compared to the same period last year.

Vietnam's main Robusta coffee export markets include: Germany, Italy, the United States, Japan, Russia... Notably, Vietnam's Robusta coffee exports to most traditional markets decreased, but exports to Mexico, the Netherlands, Indonesia... increased sharply.

Arabica coffee exports in October 2023 reached 900 tons, worth 2.96 million USD, down 64.6% in volume and 73.5% in value compared to October 2022. In the first 10 months of 2023, Arabica coffee exports reached 35.5 thousand tons, worth 139.75 million USD, down 28.6% in volume and 36.3% in value compared to the same period last year. In particular, Vietnam mainly exports Arabica coffee to markets such as Belgium, the United States, Germany, the Netherlands, Japan, Thailand, etc.

Currently, the largest coffee import market of Vietnam is the EU, followed by the US, Japan, etc. Although coffee exports to China do not account for a large proportion, many Vietnamese enterprises are also interested in this market because China has an average coffee import growth rate of more than 25%/year. Young people in this country increasingly prefer coffee to tea. However, this is also a highly competitive market, requiring enterprises to invest in diversifying specialty coffee products, processed coffee and meeting strict quality standards.

According to experts, currently, major markets such as the EU and the US are changing their consumption needs from importing green coffee to processed coffee. Therefore, Vietnam must also prioritize investment in deep processing facilities to increase the value of coffee products and move towards sustainable development.

It is forecasted that coffee prices in the 2023-2024 crop year will continue to remain high. By June 2024, if major economies in the world continue to reduce interest rates, coffee exports will continue to benefit. Because this is the time when roasters around the world buy and stockpile, coffee prices are unlikely to fall.

In the derivatives market, according to the Vietnam Commodity Exchange (MXV), after soaring in yesterday's session (December 3), the prices of two coffee products decreased by 2.69% for Arabica and 1.01% for Robusta, respectively, at the end of the trading session on December 4. The weakening Real has stimulated farmers' selling demand while inventories have temporarily stopped falling.

Coffee prices on the derivatives market fell slightly after skyrocketing yesterday.

The Brazilian Real weakened while the Dollar Index rebounded 0.49% yesterday, pushing the USD/BRL exchange rate up 1.29%. The widening exchange rate differential has encouraged Brazilian coffee farmers to sell their coffee, earning more foreign currency.

In addition, the standard Arabica inventory on the Intercontinental Commodity Exchange (ICE-US) closed at 224,066 bags on December 1, unchanged from the previous loss of nearly 70,000 bags. This temporarily stabilized market sentiment and caused prices to lose their upward momentum.

In the domestic market, recorded this morning (December 5), the price of green coffee beans in the Central Highlands and the Southern provinces fluctuated between 58,700 - 59,700 VND/kg, an increase of 200 VND/kg compared to the previous day.

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