Coffee price falls as farmers warned of lower profits

Vietnam’s coffee export price has dropped to a 10-year low and is continuing to slide. Analysts believe the price won’t go up in the last months of the year as supply is increasing.

The Ministry of Agriculture and Rural Development (MARD) reported that Vietnam’s coffee exports in the first 10 months of the year decreased sharply.

Coffee price falls as farmers warned of lower profits

With export amount of 1.35 million tons and export turnover of $2.33 billion, this represented a decrease of 14.6 percent in volume and 22.3 percent in value compared with the same period last year.

Germany and the US continued to be the two biggest export markets for Vietnam in the first nine months of the year which consumed 13.3 percent and 8.6 percent of total exports, respectively.

However, except the Filipino market which had export value increasing by 15 percent, other major export markets had a consumption level lower than the same period last year.

The coffee price in the world decreased sharply in October. Robusta with delivery in November 2019 in London was traded at $1,212 per ton, down by $108 per ton.

MARD’s report pointed out that the coffee price has decreased because of oversupply globally. Besides, the economic growth slowdown globally and the trade tension escalation are also behind the price decrease.

Vietnam’s coffee export price has dropped to a 10-year low and is continuing to slide. Analysts believe the price won’t go up in the last months of the year as supply is increasing.

The domestic market has also become gloomy following the global market decline. Robusta price in the Central Highlands provinces has decreased by VND1,900-2,300 per kilogram to VND30,800-31,300 per kilogram compared with September. Robusta FOB price at HCM City ports has fallen by $104 per ton to $1,366.

 


Vietnam’s average export price in the first nine months of 2019 was $1,717 per ton, down by 9.6 percent in comparison with the same period last year.

According to Vicofa, the coffee price at this moment is the lowest in the last 10 years. In material growing areas, the coffee is traded at VND30,000 per kilogram.

Farmers are meeting difficulties and hesitant to prepare for a new crop. Meanwhile, export companies have cut export volume as they anticipate risks.

MARD predicted that the coffee price will be stagnant until the end of the year as Vietnam is entering the new harvest, while Brazil’s inventory level is high. The country is trying to boost sales as the reais depreciation is supporting exports.

In late October, Vicofa gathered an urgent meeting with the Club of Vietnam coffee exporters to discuss solutions to ease difficulties for farmers and export companies.

Export companies have asked Vicofa to propose to the government and commercial banks to extend the debt payment deadline for farmers and provide loans at preferential interest rates so that export companies can store coffee in the high harvest season (December 2019). 

Tam Nga

Coffee stockpiling recommended for Vietnam due to low prices

Coffee stockpiling recommended for Vietnam due to low prices

The harvest season is underway at coffee plantations in the Central Highlands, but lower prices than previous years are causing problems for farmers.

Vietnam among brew-tiful coffee destinations around the world

Vietnam among brew-tiful coffee destinations around the world

Agoda, one of the world’s fastest growing online travel booking platforms, has offered a list of some of the top destinations around the world for tasting coffee, including Vietnam.  

 
 

Other News

.
Transport economics to drive Vietnam’s urban development
Transport economics to drive Vietnam’s urban development
BUSINESSicon  15/02/2021 

Transport projects are expected to improve overall accessibility and reduce transportation costs, in turn increase economic productivity and development.

Seafood industry expects to remain on growth path in 2021
Seafood industry expects to remain on growth path in 2021
BUSINESSicon  15/02/2021 

Despite facing difficulties due to the COVID-19 pandemic, seafood exports last year were estimated at US$8.58 billion, the same as in 2019.

Rice exports enjoy opportunities for breakthrough in 2021
Rice exports enjoy opportunities for breakthrough in 2021
BUSINESSicon  15/02/2021 

High hopes are pinned on Vietnam’s rice exports in 2021 when major export markets such as the Philippines and Africa continue to sign contracts to buy rice from Vietnam, 

Opportunities forecast for Vietnam’s economy in 2021: experts
Opportunities forecast for Vietnam’s economy in 2021: experts
BUSINESSicon  15/02/2021 

Apart from challenges, many opportunities will be offered to the Vietnamese economy in 2021, experts have said.

Born in the Year of the Buffalo
Born in the Year of the Buffalo
BUSINESSicon  15/02/2021 

'Buffalo' represents hard work, persistence and stability in the Vietnamese people's conception, and these characteristics are considered to apply to people born in the Year of the Buffalo [according to eastern zodiac].

Modern trade channels, e-commerce to further thrive: experts
Modern trade channels, e-commerce to further thrive: experts
BUSINESSicon  15/02/2021 

Modern and online shopping channels recorded strong growth last year and will continue to thrive this year, according to experts.

What to invest in this year?
What to invest in this year?
BUSINESSicon  14/02/2021 

With uncertainties caused by COVID-19 persisting, gold, stock, and real estate are still promising investments for Vietnamese investors in 2021.

Door opens to growing level of FDI
Door opens to growing level of FDI
BUSINESSicon  14/02/2021 

Vietnam’s effective control over the COVID-19 pandemic along with it signing a host of new free trade agreements has resulted in many global tech giants shifting their investment to the country.

Quang Ninh looks to become a strong marine-based economic hub
Quang Ninh looks to become a strong marine-based economic hub
BUSINESSicon  13/02/2021 

The northern province of Quang Ninh has outlined key measures to develop its marine-based and coastal economy, with a focus on eco-friendly tourism, maritime services, and coastal industry.

Vietnam automobile industry on recovery path despite Covid-19
Vietnam automobile industry on recovery path despite Covid-19
BUSINESSicon  13/02/2021 

Vietnam’s rising income per capita would soon move cars from a luxury product with a passenger vehicle density of 34 per 1,000 to a more ordinary one with a density level comparable to countries in the region.

Real estate appeal remains amid tumult
Real estate appeal remains amid tumult
BUSINESSicon  13/02/2021 

Vietnam has more real estate investment opportunities than other more mature Asia-Pacific markets, though certain difficulties remain.

VIETNAM BUSINESS NEWS FEBRUARY 15
VIETNAM BUSINESS NEWS FEBRUARY 15
BUSINESSicon  15/02/2021 

VIETNAM BUSINESS NEWS

Vietnamese enterprises build resilience amid pandemic
Vietnamese enterprises build resilience amid pandemic
BUSINESSicon  14/02/2021 

Vietnam’s economy has undergone a lot of changes during one year since the first case of COVID-19 was detected in the country in January, 2020, 

VIETNAM BUSINESS NEWS FEBRUARY 13
VIETNAM BUSINESS NEWS FEBRUARY 13
BUSINESSicon  13/02/2021 

 Vietnam receives foreign cargo ships on first day of Lunar New Year

2021 bodes well for mechanical engineering
2021 bodes well for mechanical engineering
BUSINESSicon  14/02/2021 

After suffering a significant fall in revenue last year, the mechanical engineering industry has high hopes for recovery in 2021, given Vietnam’s good COVID-19 control and participation in free trade agreements.

Vietnam continues to move forward in 2021
Vietnam continues to move forward in 2021
BUSINESSicon  14/02/2021 

Dr Tran Thi Hong Minh, Director of the Central Institute for Economic Management, talks about Vietnam’s potential for economic development in 2021.

Domestic coffee exporters expect a promising year
Domestic coffee exporters expect a promising year
BUSINESSicon  13/02/2021 

Vietnam’s coffee exports are expected to have a good start to 2021 after a gloomy year due to the severe impacts from the COVID-19 pandemic, according to industry insiders.

2021 GDP to grow 6.72 pct. in optimistic scenario: NCIF
2021 GDP to grow 6.72 pct. in optimistic scenario: NCIF
BUSINESSicon  12/02/2021 

The National Centre for Socio-Economic Information and Forecasting (NCIF) has released a forecast on Vietnam’s economic performance in 2021, with GDP growth of 6.72 percent and CPI of 4.2 percent under an optimistic scenario.

Silver lining found in investment channel risk this year
Silver lining found in investment channel risk this year
BUSINESSicon  12/02/2021 

Investors are pinning their hopes on different investment channels this year despite the many difficulties and risks brought about by COVID-19, analysts have said.

Construction firms urged to apply technology to improve efficiency
Construction firms urged to apply technology to improve efficiency
BUSINESSicon  11/02/2021 

The impacts of the COVID-19 pandemic and Industry 4.0 required construction firms to invest in technology to improve efficiency.

 
 
 
Leave your comment on an article

OR QUICK LOGIN