Coffee exports set to achieve the target of USD 6 billion by 2030
According to the Import and Export Department (Ministry of Industry and Trade), loosened social distancing, more favorable customs clearance, and increased world demand are the factors that helped Vietnam's coffee exports recover at the end of 2021.
According to estimates, Vietnam's coffee exports in December 2021 reached 130 thousand tons, worth USD 305 million, an increase of 21% in volume and 26.2% in value compared to November 2021, compared to December 2020 decreased by 6.5% in volume, but increased by 20.3% in value. For the whole year of 2021, Vietnam's coffee exports reached 1.52 million tons, worth approximately USD 3 billion, decreased by 2.7% in volume, but increased 9.4% in value compared to 2020.
According to estimates, in December 2021, the average export price of Vietnam's coffee reached USD 2,344 per ton - the highest level since June 2017, an increase of 4.3% compared to November 2021 and an increase of 28.7% compared to December 2020. For the whole year of 2021, the average export price of Vietnam's coffee is estimated at USD 1,969/ton, an increase of 12.4% compared to 2020.
Currently, the domestic coffee market is starting to be active, but not as in previous years. Purchase volume is low due to slow harvest (about 80% of new crop's output)).
It is forecast that in 2022, global coffee prices will continue to be high. The complicated development of the pandemic has caused limited supply from major producing countries such as Colombia and some countries in South America. Besides, the congestion at international ports is predicted to be prolonged. Currently, due to the lack of supply of Arabica coffee, some roasters are looking for the option of mixing Arabica and Robusta coffee to lower the selling price. This in the long run can help change consumer taste and become more accustomed to drinking roasted and ground Robusta coffee and will help Vietnam's Robusta coffee export more smoothly.
Although coffee exports this year reached approximately USD 3 billion, but Vietnam's deep-processed coffee in 2021 only exported 121 thousand tons, with a turnover of USD 433 million. Thus, although the volume only accounts for 8%, the export turnover of processed coffee accounts for 15% of the total turnover of this commodity.
The Vietnam Coffee and Cocoa Association has set a target that in the next 10 years, coffee export turnover will reach USD 5-6 billion, which is more than 2 times higher than the current one. Currently, the average price for a ton of processed coffee is nearly USD 3,600 while the price of coffee beans is about USD 2,400.
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