According to the Vietnam Commodity Exchange (MXV), at the end of the October 25 trading session, Arabica prices dropped sharply by 3.48% after reaching the highest level in 4 months. Robusta prices continued to weaken yesterday with a decrease of 1.04%.

Coffee prices decreased slightly after reaching a 4-month high

Statistics from the Brazilian Coffee Exporters Association (CECAFE) show that exports are growing well in the world's largest coffee producing country. Specifically, in the first 24 days of October, this country exported 2.61 million bags of Arabica beans, nearly double the 1.4 million bags in the same period last month. During this same period, nearly 500,000 bags of Robusta beans were exported, higher than the same period last month and quadrupling the total amount of coffee exported in October 2022.

Despite a slight decline in today's session, the recent sharp increase in coffee prices has helped domestic coffee prices anchor at a high level. For example, in Dak Lak province, the price of green coffee beans is fluctuating at 64,000 to 65,000 VND/kg, an increase of more than 20,000 VND compared to the same period in 2023. With an area of 210,000 hectares, the province annually harvests more than 520,000 tons of coffee, accounting for more than 30% of national coffee output. Local coffee has now been exported to more than 100 countries worldwide.

In 2022, Dak Lak province's total export turnover will reach 1.586 billion USD, of which coffee alone will reach more than 819 million USD, accounting for more than 50% of export turnover. Rising prices are good news for farmers who are clinging to their roots and exploiting resources from coffee trees in the area, especially as the 2023 main crop season is approaching.

Vietnamese coffee is popular in many markets

Regarding export, Vietnamese coffee is popular in many markets. In particular, Vietnam is one of Italy's largest coffee export markets. In the first 9 months of 2023, Vietnam's coffee exports to the Italian market reached 117.85 thousand tons, worth 262 million USD, up 6.7% in volume and 10.8% in value over the same period last year. last.

In September 2023, Vietnam's average coffee export price to the Italian market reached 2,523 USD/ton, up 6.2% compared to August and up 22% over the same period last year.

Accumulated in the first 9 months of 2023, the average export price of Vietnamese coffee to Italy reached 2,224 USD/ton, up 3.9% over the same period last year.

In the first 9 months of 2023, the export turnover of Robusta coffee and processed coffee to the Italian market grew positively compared to the same period last year; On the contrary, Arabica coffee exports decreased sharply. The proportion of Robusta coffee exports increases from 93.32% in the first 9 months of 2022 to 96.29% in the first 9 months of 2023; On the contrary, the proportion of Arabica and processed coffee exports decreased from 5.52% and 1.16% in the first 9 months of 2022 to 2.56% and 1.15% in the first 9 months of 2023, respectively.

Previously, coffee output in the 2022/2023 crop year decreased by 10-15% compared to the 2021/2022 crop year due to unfavorable weather. As a result, the amount of coffee exported decreased sharply this year. However, thanks to the 10% increase in export coffee prices compared to the previous year, export value still increased.

Currently, in the early days of October 2023, farmers in Vietnam have begun harvesting early ripe coffee for the 2023/2024 crop year. This can help increase supply for export activities in the near future. On the domestic market, recorded on October 25, the price of green coffee beans in the Central Highlands and Southern provinces was purchased around 60,100 - 61,000 VND/kg.

Commenting on the coffee industry in the long term, some experts believe that by 2050, rising temperatures could reduce up to 50% of the area suitable for growing coffee in the world.

The El Nino weather phenomenon is causing Robusta coffee bean producing countries such as Vietnam or Indonesia to be seriously affected. Robusta accounts for 40% of global coffee production. Arabica beans, which are considered better quality and have higher prices, accounting for up to 60% of what is grown in Latin America, are also threatened. Declining coffee output will cause coffee prices to continue to increase in 2024 and the following years.

Kim cuong