EU countries increase purchases of Vietnamese coffee
In the first months of the year, EU countries tend to increase their coffee purchases from Vietnam. In particular, Poland with an increase of 53.7%, reaching USD 23.5 million, Belgium with an increase of 20.1%, reaching USD 74.8 million.
According to Agro Processing and Market Development Authority (Ministry of Agriculture and Rural Development), coffee exports in July 2020 are estimated at 120 thousand tons with a value of USD 213 million, bringing the volume and value of coffee exports in the first seven months of 2020 to 1.06 million tons and USD 1.8 billion, a decrease of 0.1% in volume and 0.6% in value over the same period in 2019.
In the first six months of the year, Germany, the United States and Italy continued to be the three largest coffee consuming markets of Vietnam with market shares of 14.3% (reaching 228.1 million USD), 9% (reaching USD 142.9 million respectively) and 7.8% (reaching USD 124.5 million USD) respectively.
Coffee export value increased strongly in: Poland (up 53.7%, reaching USD 23.5 million), Belgium (an increase of 20.1%, USD reaching 74.8 million) and Japan (an increase of 18.2%, reaching USD 103.1 million).
Mr. Luong Van Tu, Chairman of the Vietnam Coffee - Cocoa Association (Vicofa), said that the EU is the second largest market for Vietnamese coffee (accounting for over 42% of Vietnamese coffee export volume).
Although Covid-19 is causing difficulties for the economy and consumption, bread, milk, coffee, etc. are still the items with high consumption in the EU. Therefore, along with EVFTA's platform, the coffee industry can add value to this market in the near future.
In contrast, the export value of coffee decreased the most in the UK market (down 24.6%, reaching USD 33.1 million) and in China (down 13.7%, reaching USD 40.6 million). The average export price of coffee in the first six months of 2020 reached 1,690 USD/ton, down 0.9% over the same period in 2019.
In July 2020, volatility of world coffee prices increased. Compared to the previous month, Robusta coffee prices delivered in September 2020 in London market increased by USD 170/ton to USD 1,357/ton. Coffee prices increased due to the positive impact from the European financial markets, which made commodity markets flourish.
Along with the strong increase of Robusta coffee, Arabica coffee prices also rebounded after many consecutive declines.
In the New York market, the price for delivery in September 2020 at USD 2,407/ton, an increase of USD 135/ton compared to June 2020. It is forecasted that world coffee prices will have many positive fluctuations in the third quarter of this year because speculative capital flows to the two trading floors of coffee futures have increased sharply.
Along with that, forecasts of the US Department of Agriculture (USDA) showed positive signals from the large market.
For example, the European Union (EU) is forecast to increase imports by 2 million bags to 49.5 million coffee bags, accounting for nearly 45% of the world's imports of coffee beans. The largest suppliers of coffee to the EU are Brazil (29%), Vietnam (23%), Colombia (7%), and Honduras (6%).
Or the U.S. - the second largest importer of the world - is also forecast to increase import demand by 2 million bags to 27 million bags. The top exporting countries to the U.S. are Brazil (24%), Colombia (22%), Vietnam (16%) and Honduras (6%).
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