Processed coffee exports increased by 46%

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

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

Processed coffee exports increased 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, 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 down 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 the markets of Belgium, the United States, Germany, the Netherlands, Japan, Thailand...

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

According to experts, currently large markets such as the EU and the US are changing their consumption demand 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 aim for sustainable development.

It is forecast that coffee prices in the 2023 - 2024 crop year will continue to stay at a high level. 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 to stock up, coffee prices have little chance of going down.

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

Coffee prices on the derivatives market decreased slightly after skyrocketing yesterday

Brazil's domestic Real weakened while the Dollar Index rebounded 0.49% yesterday, leading to a 1.29% increase in the USD/BRL exchange rate. The increased exchange rate difference has stimulated Brazilian farmers to sell coffee by earning more foreign currency.

In addition, standard Arabica inventory on the Intercontinental Commodity Service (ICE-US) ended December 1 at 224,066 bags, not decreasing further after losing nearly 70,000 bags previously. This temporarily stabilizes market psychology and causes prices to lose their upward momentum.

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

Kim Cuong 

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