AsemconnectVietnam - The lack of supply is one of the reasons why coffee exports benefit in price.

Vietnam Commodity Exchange (MXV) informed that at the end of the trading session on September 15, coffee products continued to increase in price sharply.
Accordingly, the prices of two coffee products recorded an increase of 3.34% for Arabica and 2.44% for Robusta, respectively, bringing the transaction price to the highest level in a month. Analysts are quite cautious in giving reasons for the unusually strong increase in coffee prices.
The Import-Export Department - Ministry of Industry and Trade said that it is forecast that Robusta coffee prices will continue to recover in the short term because the market is still concerned about supply shortages. The market is concerned about the El Nino weather phenomenon forecast to appear later this year and will cause partial drought in the main coffee producing countries around the Pacific rim, while the coffee volume on both exchanges remains at very low levels.
In August of 2023, Vietnam's average coffee export price recorded a record high of 3,054 USD/tonne, up by 8.0% compared to July of 2023 and up by 29.7% compared to August of 2022. In the first 8 months of 2023, the average export price of our country's coffee reached 2,463 USD/tonne, up by 8.9% over the same period last year.
The EU - the largest market for Vietnamese coffee has increased coffee imports from Vietnam in the first 6 months of 2023, up by 21% in volume and 18.1% in value over the same period last year, reaching 389,900 tonnes, worth of 854.23 million EUR (equivalent to 914.11 million USD). Vietnam's coffee market share in the EU's total imports from foreign markets increased from 20.96% in the first 6 months of 2022 to 27.5% in the first 6 months of 2023.
2023 is the year when green coffee has the highest export price in many years, however, the amount of coffee from people as well as businesses has dried up. In Lam Dong province, we are waiting for the upcoming coffee harvest season at the end of this year. In the last months of the year, when the new harvest begins, coffee prices are forecast to remain high because of increased demand.
The Vietnam Coffee and Cocoa Association (VICOFA) informed that coffee prices are at their highest level in the past 30 years. However, coffee exports through August and September were out of stock. This leads to a decrease in coffee exports from August to October compared to the same period last year.
According to VICOFA, this year's coffee output is estimated to decrease by 10-15% due to unfavorable weather. However, coffee exports from now until the end of the year are still positive due to increased demand, while supply has not improved.
In recent times, coffee - the main crop of the Central Highlands is still unsustainable. The Central Highlands provinces have currently implemented many programs to support and encourage farmers to switch to high-quality coffee production models, especially specialty coffee. Accordingly, many cooperatives and farmers have earned high profits, while increasing the brand value of coffee in the Central Highlands.
According to the calculation from the Ministry of Agriculture and Rural Development, the amount of coffee exported in 2023 may reach about 1.72 million tonnes, earning 4.2 billion USD.
CK
Source: VITIC/congthuong.vn