It is forecasted that this year’s coffee output will decrease by 10-15%/year due to unfavorable weather, but from now until the end of the year, coffee exports will still be favorable when demand increases while the source of goods does not improve.
Recently, the domestic coffee price has continuously increased along with the world coffee price.
With El Nino forecast appearing in the third quarter of 2023, it will affect coffee production in Vietnam and Indonesia, along with the low supply of many leading coffee producing countries in the world, coffee prices will continue to prosper. Coffee exports may surpass the record of $4 billion in 2022.
The average coffee price in the Central Highlands provinces continued to increase sharply in the past week and reached a record level in the last 3 months.
The domestic price of coffee on June 7 fluctuated from 61,200-61,800 VND/kg, an increase of 500 VND/kg compared to the previous day. Specifically, the price of green coffee beans (green coffee, fresh green coffee) in Lam Dong province, in districts such as Bao Loc, Di Linh, Lam Ha, coffee is purchased at a price of 61,100-61,200 VND/kg.
Coffee price in Gia Lai province, Kon Tum province stands at 61,500 VND/kg. In Dak Nong province, coffee is purchased at a high price of 61,800 VND/kg.
Coffee price in Dak Lak province, in Cu M’gar district, coffee price is currently at 61,600 VND/kg. In Ea H’leo district, Buon Ho town was purchased at the same rate of 61,700 VND/kg.
In Dak Lak, the average price of Robusta coffee in the past week reached 60,933 VND/kg, up 0.68% from the previous week and up 43.60% over the same period in 2022. In Lam Dong, the price of Robusta coffee increased by 0.5%. 47% compared to the previous week, to an average of 60,400 VND/kg and up 44.15% over the same period in 2022.
According to the Center for Digital Transformation and Agricultural Statistics, Ministry of Agriculture and Rural Development, coffee exports in May are estimated at 165,000 tons with a value of 396 million USD, bringing the total volume to the value of coffee exports in 5 months. at the beginning of 2023 reached 882,000 tons with 2.02 billion USD, down 2.2% in volume but up 0.2% in value over the same period last year.
With the growth in the first months of the year, observers say that the record of coffee export value of 4 billion USD in 2022 will be broken.
In May 2023, world coffee prices fluctuated sharply due to low supply of Robusta in leading producing countries. The price of Robusta coffee delivered in July 2023 in the London market (UK) increased by 148 USD/ton, to 2,557 USD/ton.
Along with that, the average export price of coffee in the first 5 months of 2023 is estimated at USD 2,295/ton, up 2.4% over the same period in 2022. Thus, in the last months of the year, the export value will still be high. further when new price contracts are delivered.
Vice Chairman of the Vietnam Coffee-Cacao Association Do Ha Nam said that the continuous increase in coffee prices is due to insufficient supply and demand. It is forecasted that this year’s coffee output will decrease by 10-15%/year due to unfavorable weather. From now until the end of the year, coffee exports will still be favorable when demand increases while the source of goods has not improved.
Along with export, many key coffee production areas are also aiming for sustainable development of the domestic consumption market. In the past time, the appearance of many Vietnamese coffee brands and international supply chains from companies in the coffee industry has caused domestic consumption to increase significantly.
Typically, Dak Lak, in 2022, the province has over 250 coffee processing establishments; in which there are 235 establishments processing powdered coffee, roasted coffee beans and 15 establishments processing instant coffee. Thus, Dak Lak province has at least 250 brands of processed coffee for domestic and export markets.
Dak Lak is also encouraging coffee businesses to improve their production, business and product competitiveness, and expand the domestic market as a foundation for building a national brand.
Mr. Le Duc Huy, General Director of Dak Lak 2/9 Import-Export Company Limited (Simexco Dak Lak), said that in 2022, the unit will export nearly 101,000 tons of green coffee, consume about 25,000 tons domestically. . Simexco Dak Lak is very interested in the domestic coffee consumption market.
Developing specialty coffee with the goal of building a brand, thereby affirming the position of the Vietnamese coffee industry that is receiving attention and promotion from the State.
The Ministry of Agriculture and Rural Development has approved the “Project to develop Vietnam’s specialty coffee in the period of 2021-2030” with the goal that by 2025, the area of specialty coffee in our country will be 2% of the total area, equivalent to 2% of the total area. production is at 5,000 tons and will increase to 3% and 11,000 tons respectively in 2030.
Mr. Le Duc Huy said that Vietnam’s coffee is reducing its weakness by switching to quality instead of volume. Simexco Dak Lak Company is also a pioneer in the development of specialty coffee.
Developing specialty coffee is a shift in coffee production from traditional to responsible. The responsibility requires the producer to ensure that the output meets the consumer-importer requirements.
Vietnam’s coffee exports are receiving good support from transaction prices and the domestic market remains at a record high, aiming to reach a turnover of USD 4 billion in 2023.
Read the original post here .
