Vietnam’s coffee exports can hit a record high this year because of high global demand for the robusta variety. Coffee exports this year could top over 1.8 million tons, said Do Ha Nam, deputy chairman of the Vietnam Coffee and Cocoa Association.
“The world market has consumed all the coffee shipments from Vietnam. Supply has been insufficient to meet demand,” Nam said.
The shortage comes as global’s demand for instant coffee is expected to rise this year, especially in developing markets.
Global consumption of robusta, mainly used by big companies including Nestle SA to make instant coffee, is forecast to climb to a record high this season.
The worldwide market for instant coffee is set to expand 4.7 percent a year through 2023 to $14 billion from $10.4 billion in 2017, market research firm IMARC said in a recent report.
Higher demand has boosted domestic coffee prices.
The price of coffee in the Central Highlands, Vietnam’s major coffee-growing belt, hit VND35,300-36,100 ($1.51-1.54) per kilogram in early October, higher than that VND32,500-33,300 ($1.39-$1.43) per kilogram in early September.
Coffee exports from Vietnam grew at an estimated 21.5 percent between January and October from a year ago to 1.58 million tons, according to the General Statistics Office.
Coffee export revenues for Vietnam, the world’s biggest producer of the robusta beans, rose 1.1 percent to $2.98 billion in this year’s 10-month period, the office said.