Vietnam's coffee bean export revenue reached 3.04 billion USD in the first half of the year! But the harvest is not looking optimistic

Source:Best Coffee > News Author:qjroot Published:2024-06-27 09:32:15

Recently, the General Department of Vietnam Customs released export data showing that in the first half of June this year, Vietnam’s cumulative coffee exports for the year totaled 862,400 metric tons, generating export revenue of $3.04 billion.

In terms of price, the average export price of Vietnamese coffee in May was $4,275 per ton, up 14% month-on-month from April and 66% year-on-year. In the first five months of this year, the average export price of Vietnamese coffee reached $3,475 per ton, up 41% compared to the same period last year.

The main reason for the high prices is the severe drought in Vietnam. According to reports, affected by the El Niño phenomenon this year, the period from March to May experienced the worst drought in the past decade, leading to dried-up and cracked riverbeds, withering coffee plants, and yellowing and drying leaves.

Apart from weather-related factors, the continuous rise in global demand for Robusta coffee, coupled with supply shortages, has kept coffee prices at persistently high levels. This has also led farmers and intermediaries in Vietnam and Brazil to hoard coffee beans.

According to Simexco, one of Vietnam’s largest coffee exporters, farmers are financially capable of stockpiling beans due to previously higher coffee prices, and thus are in no rush to sell — they are waiting for prices to rise further.

Therefore, no major coffee-producing country is expected to suffer severe weather-related damage, and production is likely to return to normal levels.

Vietnam's coffee bean export revenue reached 3.04 billion USD in the first half of the year! But the harvest is not looking optimistic

Download App