Vietnam's coffee exports in July decreased by more than 15%

Vietnamese Coffee Export (Photo: Internet)
 

Generally for the first 7 months of 2020, coffee exports were estimated at 1.06 million tons, worth USD 1.8 billion, down 0.1% in volume and 0.6% in value over the same period in 2019.

The average export price of coffee in July was estimated at 1,775 tons, up 4.1% over June and up 3.3% compared to July 2019.

According to statistics from the General Department of Customs of Vietnam, Robusta coffee exports in June reached 109.7 thousand tons, valued at USD 158.48 million, down 12.1% in volume and down 14.5% in value compared to June 2019.

In the first 6 months of 2020, Robusta coffee exports reached 804.2 thousand tons, worth USD 1.19 billion, up 2.2% in volume, but down 0.7% in value over the same period in 2019.

In particular, robusta coffee exports to many markets increased, such as Germany increased by 14.1%, Japan increased by 21.6%, Algeria increased by 4.6%, Belgium increased by 7.7%; while exports to Italy, Spain, America and Russia… decreased.

The average export Robusta coffee price in June reached USD 1,445 / ton, down 2.8% compared to June 2019.

In the first 6 months of 2020, the average export price of Robusta coffee reached USD 1,477 / ton, down 2.9% compared to the same period in 2019.

Recently, the US Department of Agriculture (USDA) released mid-year reports on the world supply-demand situation of coffee, claiming that the major producing countries have a good harvest.

Accordingly, global coffee production in crop year 2020/21 is expected to reach a record high of about 105 million tons, exceeding demand by nearly 4 million tons of coffee.

Thus, world coffee inventories will increase to the highest level in the last 6 years, reaching 25 million tons. Large inventories and inadequate consumption will put great pressure on coffee prices.

For Vietnam, USDA forecasts production of 30.2 million bags, down 1.1 million bags from last year's crop.

The cultivated area remains unchanged with more than 95% of the production being Robusta. Rainfall from February to May is below average in many major growing areas, while coffee plants need irrigation during this period to ensure flowering and fruiting rates.

Low coffee prices make farmers less salty but in spending a lot of money in irrigation, thereby reducing productivity.

The Ministry of Agriculture and Rural Development of Vietnam has directed policies to maintain coffee acreage at approximately 600,000 hectares and encouraged farmers to switch to other crops where conditions are unfavorable for coffee cultivation. get high.

In the past few years, some farmers have started planting durian, mango, avocado and fruit trees instead. Coffee exports are forecast to remain unchanged at 24 million bags while inventories are expected to increase.

Phaata (Adapted from Economy - Consumption) 

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