The EU is Vietnam's Largest Coffee Import Market
According to the Ministry of Agriculture and Rural Development of Vietnam, in the first 11 months of 2023, Vietnam's coffee exports are expected to reach 1.36 million tons, earning nearly US $3.5 billion.
|Many Vietnamese businesses are also interested in China, although this market has yet to have a high proportion of coffee exports. (Photo: Thoi Dai).
Coffee exports will gradually increase again now that Vietnam started harvesting for the 2023-2024 crop year. At the same time, Vietnam's average coffee export price in October 2023 continues to reach a new record high of US $3,603/ton, up 8.9% compared to September 2023 and up 40.7% compared to October 2022.
In the first 10 months of 2023, the average export price of coffee reached US $2,535/ton, up 10.6% over the same period last year.
Domestic coffee prices are also currently at a good level, about VND 60,000/kg (US $2.47). While coffee prices tend to increase again due to rising global prices, the Vietnam Coffee and Cocoa Association forecasts that the output will continue to decrease by about 10%. This is due to the effects of climate change. Also, as the area of intercropping increases, farmers will invest in crops with higher economic efficiency such as durian and other fruit trees.
Seeing the positive signs of the market, farmers tend to harvest early when coffee is still green and not yet of ripe quality at the beginning of the season.
Many local businesses recognize that countries around the world and coffee regions produce systematically with improved quality. So Vietnam must also increase quality and competitiveness to not lose the market.
To ensure the proper coffee harvesting process, the Ministry of Agriculture and Rural Development has issued many guiding documents on the correct harvesting time with the right technique for each type of coffee.
Accordingly, farmers are advised to harvest products that have a ripe fruit rate of 90% or more and an impurity rate of no more than 2%. At the end of the season, the ripe fruit rate reached over 80%.
In the 2022-2023 crop year (from October 2022 to September 2023), Vietnam's coffee exports reached 1.66 million tons, down 4.5% compared to the 2021-2022 crop year. However, export value still increased by 3.4% to a record level of US $4.08 billion thanks to high prices.
The Department of Crop Production (Ministry of Agriculture and Rural Development) said that Vietnam has more than 710,000 hectares of coffee, which currently ranks 6th in the world in terms of coffee area. Thanks to the highest productivity in the world, Vietnam has the second-largest annual coffee harvest in the world, from 1.75 - 1.85 million tons.
Of the total of more than 710,000 hectares, Vietnam only has more than 185,000 hectares of coffee area certified for sustainable production such as Utz Certified, Rainforest, 4C, and VietGAP. Localities need planning for key coffee areas, and re-cultivation for sustainable coffee production processes certified by VietGAP, 4C, Rainforest, and organic standards. international markets. That way, businesses can enter international markets.
Currently, Vietnam's largest coffee import market is the EU, followed by the US and Japan. Vietnamese coffee has the opportunity to export to China, a market with great potential with high purchasing power. Many Vietnamese businesses are also interested in China, although this market has yet to have a high proportion of coffee exports.
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