Investing in standard growing areas, coffee exports increase in value

According to the Vietnam Commodity Exchange (XMV), at the end of the trading session on October 5, the prices of two coffee products moved in opposite directions. In which, Arabica price reversed to increase by 0.45%, while Robusta price continued to decline for the 4th consecutive session when closing 0.8% lower than the reference. The weakening of the USD has helped Arabica prices temporarily interrupt the decline.

Vietnam's coffee prices are high

The Dollar Index has decreased for 3 consecutive sessions, causing the USD/Brazil Real exchange rate to somewhat slow down its previous increase and decrease by 0.39% yesterday. The less attractive exchange rate difference also partly weakens Brazilian farmers' demand for coffee sales.

In the domestic market, according to businesses, the price of green coffee in the domestic market this year increased, at one point reaching a 30-year high, exceeding the mark of 68,000 VND/kg. Up to now, the price has begun to decrease and is fluctuating in the range of 64,200 - 64,600 VND/kg, still maintained in a good price range. This will create positive psychology for coffee farmers, helping to increase the replanting rate.

Regarding price, according to the Ministry of Industry and Trade, it is estimated that in September 2023, Vietnam's average coffee export price will reach 3,151 USD/ton, up 3.2% compared to August 2023 and up 29.6% compared to August 2023. with September 2022. Accumulated in the first 9 months of 2023, Vietnam's average coffee export price is estimated to reach 2,499 USD/ton, up 9.9% over the same period in 2022.

However, many experts warn that with historic high coffee prices, it is likely that farmers will destroy forests or other crops to grow coffee. According to the Vietnam Coffee and Cocoa Association, this is the time when coffee prices are the highest in the past 30 years, and there needs to be a warning to coffee growing localities, especially the Central Highlands provinces. Localities need to control people living near forests and promptly prevent deforestation to grow coffee, especially in the context that the European Union (EU) will ban the import of coffee grown on contaminated land. originating from deforestation and causing forest degradation since the end of 2024. The EU is currently an important coffee consumption market for Vietnam.

Therefore, businesses that want to export coffee to the EU market are forced to change their farming thinking, towards sustainable production, with traceability, certification, production process and product quality. . Currently, the most difficult task that Vietnamese coffee businesses encounter is building a map to locate coffee gardens and trace their origin.

Experience from Gia Lai - one of Vietnam's largest coffee growing regions shows that, in addition to items such as processed fruits, rubber latex, supplies... with similar growth over the same period, coffee is recorded as the main export product with an output of 165 thousand tons from the beginning of the year until now. The reason is that consumer demand in the world market has increased, especially during the winter holidays and New Year in some countries in the EU and the US... so it has boosted export output to these markets.

In addition, as one of eight localities implementing a project to develop specialty coffee for the period 2021 - 2030, Gia Lai is promoting many solutions to develop high-value coffee products, considered a direction for development. local ambition and sustainability in the period up to 2030.

The goal is that by 2025, Gia Lai will develop a specialty coffee area of about 1,200 hectares, equal to 1.2% of the entire province's coffee area. By the period 2026 - 2030, the specialty coffee area will be developed to about 2,300 hectares, equal to 2.4% of the entire province's coffee area. By 2025, strive to have over 1,000 hectares of specialty Robusta coffee with an output of about 620 tons. In 2030, this area will reach about 2,300 hectares and output will reach about 1,700 tons.

The Department of Industry and Trade of Gia Lai province said that promoting coffee export growth is always of interest to the government, functional branches and many businesses in the area. Worth mentioning, coffee has had a bumper crop because the price of green coffee in the Central Highlands market from June 2023 to now has exceeded 61,000 VND/kg, on the international market reaching an average of 2,300 - 2,400 USD/ton ( increased by more than 10% over the same period in 2022). This is considered the highest increase of this item since 2011.

Recently, Gia Lai coffee products were also selected by the World Intellectual Property Organization (WIPO) to participate in the pilot project "Building brand and marketing strategies for manufacturers of branded products". geographical indication of Vietnam". This will be an opportunity for Gia Lai's high-quality coffee products to have more favorable conditions to move steadily and strongly in the world market.

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