Coffee exports increased strongly but under a lot of pressure

Turnover export coffee 60% increase

The first quarter of 2022 is a breakthrough for agricultural products. Many items not only achieved higher export value over the same period but also contributed to the “billion dollar” group.

The export turnover of the first quarter exceeded the target set by the entire agricultural sector by more than 2 billion USD and reached 12.8 billion USD, up more than 15% over the same period last year with the contribution of the main commodity groups such as rice, wood, seafood… Especially, coffee has accelerated with a growth rate of over 60%, bringing in export value of 1.3 billion USD.

The average export price of coffee increased by nearly 25% over the same period was the factor that helped the turnover increase so strongly. This is also the highest quarterly coffee export value ever of the coffee industry.

Specifically, in the first three months of the year, Vietnam’s coffee exports reached 58,700 tons, with a turnover of $1.3 billion, up more than 28% in volume and more than 60% in value over the same period last year. Robusta coffee exports to major markets have increased, such as Germany, Belgium, the UK, Japan, Russia, Spain, and the Philippines. In contrast, exports to the Italian and American markets decreased.

In the first three months of the year, Vietnam’s coffee exports reached 58,700 tons, with a turnover of 1.3 billion USD. Illustration – Photo: Dan Tri.

Coffee exports are under a lot of pressure

However, from the beginning of April until now, coffee market The world is under a lot of pressure, coffee prices have had mixed fluctuations. This has also impacted the domestic coffee market. Currently, the price of coffee in the domestic market has decreased slightly, down to about 40,700 – 41,300 VND/kg.

Coffee farmers are under pressure from rising fertilizer and gasoline costs, affecting profits. Some households have to cut input costs, limit sales to wait for prices to increase. The buying and selling of coffee at agents is therefore quite bleak.

At present, a series of unfavorable information is weighing on world coffee prices. According to coffee exporters, the price of robusta coffee in the coming time will continue to be under downward pressure.

“As soon as Indonesia and Brazil start a new crop, European people’s lives due to inflation have already begun to adjust in terms of spending. I think the price of coffee will not increase again, but keep at the current level or further decrease,” forecasted Mr. Le Thanh Son – Head of Sales – Import-Export, 2/9 Dak Lak Import-Export Co., Ltd.

Currently, the coffee consumption of traditional markets such as Russia, the Middle East, the US and Europe has decreased sharply. Therefore, domestic coffee businesses are turning to the Asian market. With the factor of population density, effective epidemic control and stable political situation… Asia will be a potential market for Vietnamese coffee enterprises to increase exports.

From the beginning of April until now, the global coffee market has been under a lot of pressure, coffee prices have had mixed fluctuations. Illustration – Photo: Investment Newspaper.

Vietnamese coffee takes advantage of the opportunity to export to the EU

Market diversification in any context will still be a positive direction to help Vietnam expand opportunities for agricultural products. Not only Asia, European countries are also very fond of Vietnamese coffee. One of the reasons why coffee exports have prospered is because Vietnam’s robusta coffee is highly appreciated by customers and is competitive compared to other major suppliers such as Brazil, India, South America, Colombia…

European countries such as Germany, Belgium, and Italy are also very fond of Vietnamese coffee. In the first two months of the year, these three markets imported more than 108,000 tons of coffee from our country, equivalent to $230 million.

The EU market is currently the largest coffee consuming market in the world, and also the largest Vietnamese coffee market, accounting for more than 16% of the market share.

In particular, with the commitment to remove tariff barriers from the EVFTA Free Trade Agreement, the opportunity to expand the Vietnamese coffee market here is very potential. In which, the product that benefits the most is processed coffee. In addition, the EU has committed to protect 39 geographical indications of Vietnam related to coffee.

According to coffee experts, to quickly take advantage of opportunities from free trade agreements, Vietnamese enterprises must organize coffee production according to European standards; at the same time actively building and developing customer relationships with large distribution corporations.

In particular, must be proactive in technology to preserve and transport agricultural products by sea; make good use of preferential credit policies and credit assessment and verification services of British banks.

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