Coffee exports increased sharply by over 17%

Coffee exports continue to improve as world coffee prices remain high. According to the Vietnam Commodity Exchange (MXV), on the last day of October, Arabica coffee prices rebounded by more than 5%, while Robusta prices also ended a five-session decline streak by increasing by more than 2% compared to the reference price. Inventories on the ICE dropped to the lowest level in a year while supply remained uncertain, supporting the price recovery.

Coffee prices jump

Standard Arabica inventories on the Intercontinental Commodity Exchange (ICE-US) continued to decrease by nearly 1,000 60kg bags in the last session of October, bringing the total amount of Arabica coffee in storage to 389,138 bags, the lowest level since early November 2022.

While rains are helping coffee plants in Brazil, if they continue and the rainfall is about 200mm above normal as forecast, the flowering coffee plants will be adversely affected. At the same time, transportation, which is already difficult, will be further aggravated.

In addition, the strengthening of the Real, which led to a 0.24% decrease in the USD/BRL exchange rate yesterday, also somewhat limited the demand for coffee from Brazilian farmers, thereby boosting the price increase.

In the domestic market, this morning, the price of green coffee beans in the Central Highlands and the Southern provinces recovered strongly, approaching the 60,000 VND/kg mark. With an increase of more than 1,000 VND/kg, the domestic coffee purchase price is currently fluctuating between 58,800 - 59,600 VND/kg.

The 2023/24 harvest is being supported by dry weather conditions in the Central Highlands, leading to expectations that Vietnam’s exports will soon improve thanks to new crop supplies.

Vietnam's coffee exports in October 2023 increased again

Regarding exports, according to preliminary statistics from the General Statistics Office, Vietnam's coffee exports in October 2023 increased again, reaching 60,000 tons, up 17.7% compared to September 2023, but down 29.7% compared to the same period in 2022. Export turnover reached 189 million USD, up 12.1% compared to September, but down 13.6% compared to the same period in 2022.

In the first 10 months of 2023, Vietnam's coffee exports reached 1.313 million tons, down 9.5% over the same period in 2022; turnover reached 3.32 billion USD, down 0.2%.

After 7 consecutive months of increase, the average export coffee price in October turned down, reaching 3,151 USD/ton, down 4.8% compared to September, but still up 23% over the same period in 2022. In the first 10 months of 2023, the average export coffee price reached 2,527 USD/ton, up 10.3% over the same period in 2022.

Vietnam currently exports coffee to more than 80 countries. In 2022, Vietnam's coffee exports reached over 1.77 million tons, with a turnover of over 4.05 billion USD. Of which, the EU is a large consumer market, accounting for 38.3% of the country's total coffee export volume.

Vietnam ranks 6th in the world in terms of coffee growing area, with more than 700 thousand hectares (after Brazil: 1.9 million hectares; Indonesia: 1.2 million hectares; Colombia, Ethiopia and Ivory Coast each have about 800 thousand hectares). However, thanks to Vietnam's highest coffee productivity in the world, 2.8 times higher than Indonesia's, Vietnam has the second largest annual coffee harvest in the world, with 1.75-1.85 million tons.

The EU is still the world's largest coffee importer and consumer market. In the 2022-2023 crop year (from October 2022 to the end of September 2023), the EU imported 47.5 million bags of coffee (each bag weighs 60 kg), an increase of 3 million bags compared to 2022; accounting for 40% of the world's total imported green coffee. The leading coffee suppliers to the EU include: Brazil accounting for 35%; Vietnam accounting for 22%; Uganda accounting for 7%; Honduras accounting for 6%.

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