Coffee exporting enterprises and authorities need to build an ecosystem to effectively utilise free trade agreements (FTA) to develop the industry, experts have said.

Three Vietnamese enterprises have participated in the 2024 World of Coffee 2024 festival, which was organised by the Specialty Coffee Association (SCA) in Copenhagen, Denmark, from June 27-29.

Vietnam's coffee exports has topped 3 billion USD so far this year.

Despite impressive export value growth, Vietnam's coffee industry is facing a drop in output for export due to prolonged heat and drought.

Coffee prices continued to rise sharply on June 5, ranging from 122,000 - 123,500 VND (4.8-4.86 USD) per kilogramme in the Central Highlands – the largest coffee growing area in the country.

Coffee is one of the agricultural products with the highest export price during the past 5 months of this year, at US$3,482 /ton, up 49.9% over the same period from last year, according to the Ministry of Agriculture and Rural Development (MARD).

Vietnamese coffee exports to the Spanish market reached approximately 55,380 tonnes in the first four months of this year, worth US$193.1 million, an increase of 53.7% in volume and 136.6% in value compared to the same period last year.

The Ministry of Agriculture and Rural Development said that Vietnam’s coffee output in the 2023–2024 crop year is estimated to decrease by 20% compared to the previous crop year, to 1.47 million tonnes, the lowest in four years.

Coffee export businesses are wary over an October start for the harvest season, meaning healthy export figures thus far in 2024 may be dampened by dwindling supply.

Vietnam exported 585,696 tonnes of coffee worth US$1.9 billion during the first quarter of the year, recording the highest level since 2013, according to the General Department of Vietnam Customs.

The EU imported 4.05 million tons of coffee in 2023, worth $20.79 billion, according to Eurostat. The figure was a 9 percent decrease in quantity and 10.2 percent in value compared to 2022.

With 652,000 tonnes of coffee exported to the EU worth 1.66 billion USD in 2023, Vietnam was the second biggest coffee supplier of the EU in terms of volume and third largest supplier in terms of value.

Coffee prices have soared, causing some exporters of Vietnamese coffee beans to cancel contracts previously signed with partners.

Y Pot Niê, 36, an E De ethnic man, stands at his booth at the eighth National Farmers Forum, taking place in Hanoi, and inviting visitors to try a cup of his coffee.

Vietnam shipped 230,000 tonnes of coffee abroad in January, earning 623 million USD, up 61.6% in volume and 100.3% in value year-on-year, according to the Ministry of Agriculture and Rural Development.

Coffee prices are increasing because of a global shortage.

Vietnam continues to be the biggest coffee producer and exporter in the world with export turnover of $4.18 billion in 2023. The world market is relying on supply from Vietnam.

Vietnam shipped 1.61 million tonnes of coffee abroad in 2023, earning 4.18 billion USD, down 9.6% in volume but up 3.1% in value year-on-year.

Vietnamese coffee exports in the 2023 to 2024 crop year are anticipated to reach between US$4.5 billion and US$5 billion thanks to continued coffee export prices in the global market, according to industry insiders.