Vietnam's Coffee exports down in 9 months
(VietnamNews) - Vietnam’s coffee exports in the first nine months of this year fell by 13.3 per cent in volume to 1.25 million tonnes and 21.9 per cent in value to US$2.15 billion compared with the same period of last year. According to the Ministry of Agriculture and Rural Development’s Department of Agricultural Product Processing and Market Development, coffee exports in September were estimated at 81,000 tonnes, earning $143 million.
Germany and the US were still the two largest coffee export markets of Vietnam in the first eight months of this year with export value of $270.6 million (accounting for 13.5 per cent of the total) and $176 million (8.8 per cent), respectively.
A strong decrease in average coffee export price was a factor leading to the reduction in Vietnam’s exports to most traditional markets such as Germany, the US, Italy and Spain.
In the first eight months, the average coffee export price dropped by 10.7 per cent to $1,709 per tonne year on year.
The coffee price in the world market decreased because Brazilian coffee growers enhanced selling because of a drop in Brazil's currency, meanwhile, coffee reserves in some major markets like the US continue to rise, according to the ministry. In the domestic market, the price also decreased along with the world market trend. The price of green coffee in September plunged by VND100 per kilo to VND32,400-33,400 in the Central Highlands provinces compared with August, reported the Cong thuong (industry and trade) magazine. The coffee price in the first nine months had a decrease of VND100-200 per kilo compared to the end of 2018. The Brazilian government has reduced its forecast on coffee output for this year's crop to 49 million 60-kg bags, down from 50.9 million bags forecasted in May 2019, due to bad weather.
By the end of this year, coffee production is expected to increase as usual, so the international roasters and traders will promote their brand overseas.