DAILY: Vietnamese coffee prices increased by 500 VND on September 29Friday, September 29,2023
AsemconnectVietnam - On Friday, Robusta coffee prices in Vietnam's Central Highlands, the country's largest coffee-growing area rose by 500 VND to VND66,200 – VND67,000 per kg compared to Yesterday, according to Kinhtedothi.
Gia Nghia of Dak Nong provided the maximum price of VND67,000/kg, while traders in Lam Dong province offered the lowest price of VND66,200/kg. Robusta coffee increased to VND66,200 in Bao Loc, Di Linh, and Lam Ha; to VND 66,700 – VND66,800 per kg in Dak Lak; to VND66,900 - VND67,000 in Dak Nong; to VND66,100 per kg in Kon Tum, and to VND66,500 - VND66,600 per kg in Gia Lai.
Vietnam's coffee exports in the first half of September 2023 are estimated to decrease sharply by 35% to 24,362 tonnes compared to the first half of August 2023, and down 39% compared to the same period in 2022. Coffee export turnover in the first half of September is estimated to reach 76.76 million USD, down 30.8% compared to the first half of August 2023, and down 19.4% over the same period in 2022.
The reason is that Vietnam's coffee reserves are very low, and it is estimated that this year's coffee output may decrease significantly, reaching the lowest level in the past 4 years. This leads to a situation where even though green coffee prices are high, there is very little transaction and coffee export activities are limited.
Many organizations and experts estimate that this year's coffee output in Vietnam will decrease by 10-15% due to unfavorable weather. While global coffee production is short of about 7.26 million bags in the 2023 - 2024 crop year, coffee supply is expected to be short in the short and medium term.
Key players in the Vietnam coffee market
The Vietnamese coffee market is a tough arena for both local and foreign brands. A Mordor Intelligence assessment lists five leading brands in the Vietnam coffee market. These are noted below.
Nestlé is a well-known brand in the Vietnamese fast-moving consumer goods (FMCG) industry. The company has leading instant coffee products under the brand name ‘Nescafé’, which had the highest brand recognition of instant coffee products in Vietnam in 2018. Currently, Nestlé has six plants in Vietnam with roughly 2,300 employees.
Bien Hoa Vinacafé Joint Stock Company
Bien Hoa Vinacafé is the leading coffee manufacturing company in Vietnam with two signature coffee instant products: Vinacafé and Wake-up. The company has exported its coffee products to more than 20 countries, including major markets in ASEAN and Europe.
Starbucks Coffee Company
Starbucks is the world’s biggest coffee retailer with more than 30,000 retail stores located in 75 countries. In Vietnam, the company owns 87 stores, which are mainly concentrated in Hanoi and Ho Chi Minh City. According to the CEO of Starbucks Vietnam, the company plans to continue to expand its network in Vietnam and is expected to reach 100 stores this year 2023.
Len’s Coffee LLC
Len’s Coffee is a family-run coffee-exporting company. The company exports different varieties of coffee to the U.S. from Vietnam, including Arabica, Robusta, Excelsa, and Liberica. Len’s Coffee works with four famous local coffee brands in Vietnam: Trung Nguyen Coffee, Highlands Coffee, Truong Lam Coffee, and Bach Coffee.
Phuc Long Trading Production Company Limited
Phuc Long Trading Production Company is a pioneer in the Vietnam coffee and tea industry. The company had a total of 132 stores in 2022 and aims to be the largest coffee and tea chain in Vietnam. In addition to offering food and beverage services at stores, Phuc Long also sells packaged coffee and tea products. The company has plans to expand into the global market in 2024.
Following are domestic Robusta coffee prices on September 29, in Vietnam's Central Highlands:
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