Coffee exports could hit record $5 billion in 2024

Coffee exports are showing many positive signs and could bring in a turnover of 5 billion USD this year.

Coffee exports could bring in $5 billion in revenue this year. Photo: Vu Long

Coffee export price increased 2.5 times

According to the Ministry of Agriculture and Rural Development (MARD), in the first 7 months of 2024, Vietnam exported 964 thousand tons of coffee, reaching a turnover of 3.54 billion USD. It is worth noting that, although the quantity decreased, the turnover value coffee export increased by 30.9% in 7 months.

According to the Vietnam Coffee and Cocoa Association (VICOFA), the value coffee export increased due to the increase in the export price of Vietnamese coffee in the world market, especially in the main markets. In particular, in the main export markets of Vietnamese coffee such as Spain, Russia, the US, Indonesia, the Philippines, the Netherlands, China... the import price has increased by about 30% compared to the previous year.

Currently, coffee prices have increased nearly 2.5 times compared to the same period last year. The reason for the increase in coffee export prices is due to increased import demand from countries, but revenue is decreasing, especially since the amount of coffee in the 2023-2024 crop year is currently limited.

Coffee exports are favorable in all factors: Price, market and domestic supply. Photo: Vu Long

According to Mr. Nguyen Nam Hai - Chairman of the Vietnam Coffee - Cocoa Association, the recent high coffee prices are due to many factors, including the impact of climate change, the El Nino phenomenon causing drought in coffee growing areas around the world leading to a decrease in supply. In addition to climate factors, military conflicts around the world, tensions in the Red Sea have caused increased shipping costs and many other costs. In addition, many financial speculators in the world choose coffee (after oil and gold) to speculate, which is also a factor that greatly affects the price of this commodity.

Coffee can join the "Over 5 billion USD export club"

According to VICOFA, Vietnam currently has only about 148,000 tons of coffee left to export in the remaining 2 months of the 2023-2024 crop year (from August 2024 to the end of September 2024). Meanwhile, the new crop year will not start harvesting until October 2024.

Limited supply may push coffee prices on the world market to continue to increase in the coming time.

In addition to price factors, market factors are also favorable. Specifically, in the UK market, the amount of Vietnamese coffee exported to this country has increased.

According to the Import-Export Department (Ministry of Industry and Trade), in June 2024 alone, coffee export Vietnam's coffee exports to the UK reached 2,180 tons, worth 9.1 million USD, up 24.4% in volume and 15.1% in value compared to the previous month. Also during this period, the average export price of coffee from Vietnam to the UK reached 4,174 USD/ton, up 49% over the same period last year.

The Ministry of Industry and Trade also forecasts that Vietnam's coffee exports to Spain, Russia, the US, Indonesia, the Philippines, the Netherlands, China... will continue to be optimistic in the coming time.

With favorable factors in price, market and output, coffee exports in 2024 are forecast to reach a record of 5 billion USD. The coffee industry will contribute to overall economic growth, and coffee will be a valuable export item joining the "over 5 billion USD export club".

According to the Dak Lak Provincial People's Committee, in the context of global coffee fluctuations, Dak Lak province has developed a sustainable coffee development plan: Not increasing the coffee area outside the planning, focusing on converting ineffective coffee areas that do not ensure water sources to other crops.

In addition, Dak Lak focuses on applying information technology to sustainable coffee management and production; building management software and training human resources to apply information technology in implementing plans, monitoring and inspecting sustainable coffee production processes; creating digital maps of tree orchards, and updating annual databases on replanting and varietal improvement.

Dak Lak province also has a plan to provide financial support for the registration of expanded protection for coffee products bearing the Buon Ma Thuot geographical indication; continue to implement quality management, ensure food safety; and encourage the business community to apply advanced quality management systems in the world.

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