Coffee export value drops
Despite the huge amount of exported coffee, the industry is facing various troubles and in need of an overhaul to improve coffee quality and its prices.
Moreover, the export coffee prices from Vietnam in the first seven months also decreased by 11.2% to USD1,708 per tonne. This has been a common trend since world coffee prices dropped to their lowest point in the past 13 years because of surplus supply. Vietnam's coffee prices are among the lowest despite the huge export volume.
Vietnam is the biggest coffee supplier in Spain. The average import coffee prices in Spain is around USD2,712 per tonne but the coffee price from Vietnam is only USD1,779. The coffee price from France is the highest at USD15,670.
Statistics from the Korea Fair Trade Commission show that in the first four months of 2019, Vietnam was also South Korea's biggest coffee supplier with 11,000 tonnes of coffee but the average price is USD1.8 per kilo. Brazil is the second biggest supplier with 10,600 tonnes but the price is USD2.6 per kilo.
Vietnam's coffee is being exported to over 80 countries with USD3bn in revenue and a market share of 14%. However, 90% of its export is Robusta and the harvested coffee beans fail to meet requirements about ripeness and purity. The processing equipment is outdated so the final products also have low quality.
Vietnam lacks well-known coffee brands and mostly exports raw coffee which ends up being ingredients for coffee brands from other countries.
It is predicted that coffee prices will increase in a short-time period since the supply from major exporters will drop. However, the prices will still stay at a record low.
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According to the Agro Processing and Market Development, in the first 8 months of 2019, Vietnam exported 1.17 million tonnes of coffee for nearly USD2bn, a decrease of 11.8% and 21.4% respectively compared to the same period last year. Germany and the US continue to be Vietnam's largest customers.Moreover, the export coffee prices from Vietnam in the first seven months also decreased by 11.2% to USD1,708 per tonne. This has been a common trend since world coffee prices dropped to their lowest point in the past 13 years because of surplus supply. Vietnam's coffee prices are among the lowest despite the huge export volume.
Vietnam is the biggest coffee supplier in Spain. The average import coffee prices in Spain is around USD2,712 per tonne but the coffee price from Vietnam is only USD1,779. The coffee price from France is the highest at USD15,670.
Statistics from the Korea Fair Trade Commission show that in the first four months of 2019, Vietnam was also South Korea's biggest coffee supplier with 11,000 tonnes of coffee but the average price is USD1.8 per kilo. Brazil is the second biggest supplier with 10,600 tonnes but the price is USD2.6 per kilo.
Vietnam's coffee is being exported to over 80 countries with USD3bn in revenue and a market share of 14%. However, 90% of its export is Robusta and the harvested coffee beans fail to meet requirements about ripeness and purity. The processing equipment is outdated so the final products also have low quality.
Vietnam lacks well-known coffee brands and mostly exports raw coffee which ends up being ingredients for coffee brands from other countries.
It is predicted that coffee prices will increase in a short-time period since the supply from major exporters will drop. However, the prices will still stay at a record low.
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