The Vietnam Coffee-Cocoa Association has recently projected that coffee exports for this year could greatly exceed expectations, potentially reaching over US$8 billion. This is a substantial increase from the previously set target of $6 billion for 2030. The association attributes this optimistic forecast to three primary factors, namely enhanced product quality, an increased proportion of processed products, and strategic long-term market expansion.
According to the Ministry of Agriculture and Environment, Vietnam’s coffee exports in the first ten months of this year amounted to 1.3 million tonnes, bringing in $7.41 billion. This indicates a remarkable growth of 61.8% compared to the same period last year. Notably, shipments to several markets, including Mexico, experienced exceptional growth. Specifically, exports to Mexico increased by a factor of 34.7.
The average export price of coffee also saw a significant increase, reaching $5,653 per tonne, a 42.5% surge from the previous year. The association cited that the low coffee prices prior to 2020 resulted in farmers reducing their plantations, thereby decreasing the overall supply. Conversely, businesses have increased their investments in sustainable production chains to enhance quality in compliance with international standards.
The tight global supply paired with the continued rise in demand led to a spike in coffee prices, propelling export revenue to unprecedented levels. The Association went further to analyze that free trade agreements, particularly the EU-Vietnam Free Trade Agreement (EVFTA), have encouraged both businesses and farmers to adjust their practices to meet stricter emission and quality standards.
This year saw the coffee industry develop a comprehensive ecosystem focused on responsible production, ranging from raw-material sourcing to processing. This move is expected to pave the way for sustainable growth in the years to come.
What led to the surge in Vietnam’s coffee exports?
Enhanced product quality, an increased proportion of processed products, and strategic long-term market expansion are major factors that have contributed to the surge in Vietnam’s coffee exports.
How have free trade agreements impacted the coffee industry in Vietnam?
Free trade agreements, specifically the EU-Vietnam Free Trade Agreement (EVFTA), have encouraged businesses and farmers in Vietnam to adjust their practices to conform to stricter emission and quality standards.
What steps have been taken towards sustainable growth in Vietnam’s coffee industry?
The industry has developed a comprehensive ecosystem focused on responsible production, which spans from raw-material sourcing to processing. This is a strategic move towards achieving sustainable growth in the future.
