Vietnamese Coffee Exports in 2024 Could Reach 6 Billion USD
[Updated September 26th, 2024] Vietnamese Coffee Exports reached 902,000 tons in the first half of 2024. It’s a 10.6% decrease from the same time the previous year. Nonetheless, the first half of this year saw 3.2 billion USD in coffee export turnover. And it’s up 34.5% from the same period the previous year due to the high export price of coffee.
1. New Vietnamese Coffee Exports records
In June 2024, 84.6 thousand tons of coffee were exported from Vietnam, according to the Ministry of Agriculture and Rural Development. Compared to the same time last year, it was 40% lower. But during the same time last year, the price at which exports of coffee rose by more than 50%, setting a record for export turnover of USD 300 million.
According to the Ministry of Agriculture and Rural Development’s prediction, the value of coffee exports could surpass USD 5 billion in 2024. And it might perhaps surpass 6 billion USD, the greatest record ever.
2. Reasons for the increase in Coffee Beans price
Due to a severe decline in coffee crop yield, there was insufficient coffee available for export. It resulted in a drop in coffee export production.
In the 2023–2024 crop year, there are 709,041 hectares of coffee-growing land. Drought and pests in the main coffee-growing regions caused a decline. The result was a 20% drop in coffee production, to 1.47 million tons. Now, there is significantly less Robusta coffee available on the global market. This is the lowest amount in four years.
This year crop quality is suffering due to severe drought in the Central Highlands region and pests. Notably, pests and drought have negatively impacted coffee production over a wide range of locations. The impact of climate change has caused drought not only in the Central Highlands but also globally. So the total global coffee supply has decreased sharply, pushing coffee prices to a record high.
3. Will Coffee prices continue to increase?
In recent years, coffee prices have been extremely low. As a result, farmers spend little on this crop. Instead, many households have switched to more economically efficient crops. This is the reason behind the decline in coffee yield. Furthermore, some coffee-growing regions are now rather old. Nevertheless, the lack of replanting has impacted the output significantly. Harvesting of the fresh coffee crop will start in October and November. As a result, there are extremely few sources of coffee available for firms to buy and export. There’s a chance the price will go up later.
There were inconsistent changes in coffee pricing on the international market. In September 2024, the price of Robusta coffee on the ICE Futures Europe platform dropped by 0.69% to USD 4,039/ton. In September 2024, the price of Arabica coffee on the ICE Futures US exchange rose by 0.49% to 225.95 US cents per pound.
Coffee prices are rising in the global market, particularly for Arabica coffee. This is due to worries that Brazil’s drier-than-average weather may harm the development of coffee trees.
For the fourth week running, Minas Gerais, Brazil, saw no rain. Approximately half of Brazil’s Arabica coffee production comes from Minas Gerais, the country’s largest coffee-growing region. As a result, a lot of predictions indicate that coffee costs in international markets will keep rising.
About us
Havigo Company Limited operates in the field of agricultural export. We wish to bring high-quality Vietnamese agricultural products such as spices, rice, beans, and fruits… to the world. We supply you with high-quality products at the best price. If you find interested in importing premium Robusta and Arabica Coffee Beans, don’t hesitate to get in touch with us for better support via WhatsApp: +84 979 58 58 56.