return icon Vietnamnet.vn

Dilemmas abound for Vietnamese coffee exporters trying to compete

The ongoing global health crisis has left the Vietnamese coffee export industry in the lurch due to continued falls in price.

1505p13 dilemmas abound for vietnamese coffee exporters trying to compete
Global output & Year’s end stock

According to the Ministry of Agriculture and Rural Development’s Department for Agricultural Products Processing and Market Development (DAPP), coffee exports in July witnessed an on-year decrease in both price (0.1 per cent) and volume (0.6 per cent).

Since late April, the consecutive decline in export prices has significantly hurt Vietnam’s coffee exports, especially amid the resurgence of the pandemic. For example, as of late last week, the on-year price fall could be seen in the United Kingdom (24.6 per cent), and China (13.7 per cent). Vietnam’s average coffee export price hit $1,690 per tonne, down 0.9 per cent on-year.

 

1505p13 dilemmas abound for vietnamese coffee exporters trying to compete
Output of Vietnam

According to the DAPP, Vietnam reaped export turnover of $213 million for 120,000 tonnes in July, and $1.8 billion tonnes with 1.06 million tonnes for the first seven months of 2020 – down 0.1 per cent in volume and 0.6 per cent in export value on-year.

Amid the resurgence of COVID-19 in the country, it is expected that Vietnam may miss the set target of $3 billion in coffee export turnover this year due to an expected decline in export prices.

As per the Vietnam Coffee and Cocoa Association, the average price for exports in the 2019-2020 period has flung to a 10-year low, at times at $1,207 per tonnes of Robusta coffee, and 88 US cents per pound of Arabica.

Figures from Vietnam’s General Statistics Office showed that last year, Vietnam exported 1.61 million tonnes for $2.78 billion, down 13.9 per cent in volume and 21.2 per cent in value on-year.

In the first seven months of 2020, said the DAPP, the downtrend in coffee prices reflected a decline in global consumption caused by the pandemic and new supplies from Brazil, one of the largest coffee producers in the world.

In addition, coffee prices have also been influenced by the depreciation of the Brazilian real, which created new competition for Brazilian exporters in the global coffee market, and pressured the prices of global coffee including those of Vietnam.

Observers estimated that Vietnam’s exports in the 2019-2020 period reduced to 26.3 million 60-kg bags, lower than the previously-forecasted volume, due to price differences of Vietnamese coffee in the futures market, prompting importers to turn to buying from Brazil and Indonesia.

In addition, an increase of an extra VND600 (3 US cents) per kg of coffee domestically since late 2019 has also caused difficulties to businesses in purchasing coffee materials for exports.

Stalled export-import activities everywhere caused by the pandemic have forced many ports to close down, making it impossible for the coffee price to recover in the first seven months of this year.

In addition, COVID-19 has forced Vietnam’s key importers – the EU and the US – to slash coffee imports from the Southeast Asian nation due to feeble purchasing power caused by the governments’ policies of social distancing, with closure of a series of activities in coffee trading, cafés, and coffee firms.

Meanwhile, stockpiles remain at a high level, found at depots and warehouses of businesspeople, exporters, and farmers. Low prices mean farmers do not want to sell their products, making it difficult for businesspeople and exporters to ensure supplies.

Experts said that currently the average coffee price is hovering at $1,356 for January 2021 contracts. If stock prices – especially in the US market – reduce, speculators will shift to goods, notably coffee as it is one of the main trading floors together with gold and crude oil. With their rich budget, speculators may select floors with good liquidity, and coffee may be selected. VIR

Van Nguyen

 

Construction engineer pours efforts into organic coffee

Construction engineer pours efforts into organic coffee

Demand for high quality agricultural products is increasing and many consumers are looking for organic options.

Restaurants, coffee chains in Vietnam switch to selling online delivery

Restaurants, coffee chains in Vietnam switch to selling online delivery

After HCM City decided to temporarily close restaurants and catering services with the capacity of more than 30 customers, they began selling online and delivering food.

MORE NEWS

Automobile sale strongly rebounds in 7 months

Automobile sales in Vietnam posted a month-on-month increase of 20% and a year-on-year surge of 88% in July, the Vietnam Automobile Manufacturers’ Association (VAMA) reported on August 11.

Authorities warn transport companies on fare prices

Fuel prices have fallen back to the pre-January level, but many transport firms still refuse to adjust their fares, according to authorities.

Hanoi handles over 700 long-stalled projects

Hanoi City has reviewed and handled over 700 long-delayed projects covering a total area of more than 5,000 hectares to speed up the investment in and completion of the projects and avoid a waste of land.

Vietnam to develop game industry: official

The Ministry of Information and Communications (MIC) is developing a strategy with specific goals and norms to develop the game industry, said Le Quang Tu Do, deputy director of the Authority of Broadcasting, Television and Electronic Information.

Five Vietnamese skaters to compete at int'l figure skating competition

Five Vietnamese skaters will compete at the 2022 International Skating Union (ISU) Junior Grand Prix of Figure Skating which will take place in the Czech Republic from August 31- September 3, and in Italy from October 12-15.

Vietnam stays ready for trade talks with US to address arising problems

Vietnam is willing to hold trade talks with the United States to timely solve arising problems and strengthen bilateral economic, trade and investment relations, in the interest of businesses and people of the two countries.

First-ever Namaste Vietnam Festival to take place in HCM City

Ho Chi Minh City is set to host the first-ever “Namaste Vietnam Festival" from August 12 to September 12 to mark 75 years of Indian Independence and 50 years of Vietnam – India diplomacy this year.

Vietnam, UN sign strategic framework for sustainable development cooperation

A Strategic Framework for Sustainable Development Cooperation (CF) between the Government of Vietnam and all UN resident and non-resident agencies in Vietnam for the 2022-2026 period was signed in Hanoi on August 11.

Vietnam promotes relations with both US and China, FM spokesperson

Vietnam wants to promote relations with both the United States and China, and expects both sides will exercise restraint for global peace, Foreign Ministry spokesperson Le Thi Thu Hang said at a regular press briefing on August 11.

Vietnam – new stop for semiconductor producers

Samsung Electronics’ plan to manufacture semiconductor products in Vietnam has sparked the hope that the Southeast Asian nation will be a new stop for the semiconductor industry.

Blockchain projects preferring long-term partnerships

With the blockchain market showing signs of recovery and the amount of capital increasing sharply in recent weeks globally, investors are now more confident in seeking out stronger connections to move forward.

Tourism Minister proposes extending for implementation of preferential policies

The Minister of Culture, Sports and Tourism suggested extending the implementation of support policies until 2023 to help tourism businesses overcome difficulties caused by the pandemic as travel businesses are still facing difficulties.

Quang Ninh to develop big-ticket tourism project

The government of Quang Ninh Province is set to develop a luxury tourism project at a total cost of over VND24.8 trillion, or US$1 billion, in Van Don District.

Vu Lan Festival: A cultural activity with Buddhist philosophy in Vietnam

The festival is an opportunity to remember the merits of parents and ancestors.

Minister of Public Security supports legal betting to fight illicit online gambling

Minister of Public Security To Lam says that the government’s decree on betting is expected to help reduce illegal online betting.
back_to_top