Coffee exports in July 2021 increase in value

Although world coffee demand is forecasted to increase from now until the end of 2021, Vietnam's export output tends to decrease.

Vietnam's coffee exports are facing many difficulties.

According to the General Department of Customs under the Ministry of Finance, Vietnam's coffee exports in the second quarter of 2021 reached 390.4 thousand tons, worth US$738.52 million, down 12.8% in volume and down 8.7 % in value compared to the first quarter of 2021.

Compared to the second quarter of 2020, such a figure decreased by 8.1% in volume but increased by 2.6% in value.

It was forecasted that Vietnam's coffee exports in July 2021 reached 110,000 tons, worth US$207 million, down 14.1% in volume and 16.7% in value compared to June 2021. Compared to July 2020, that figure was stable in volume but increased by 5.9% in value.

Vietnam's coffee exports in the first 7 months of 2021 are estimated at 953,000 tons, worth US$1.754 billion, down 9.3% in volume and 1.7% in value compared to the first 7 months of 2020. .

According to the Import and Export Department under the Ministry of Industry and Trade, Vietnam's coffee exports in the coming time will face many difficulties. In addition to the complicated situation of the COVID-19 pandemic, such difficulties are also caused by large-scale social distancing measures that have been negatively affecting the production and transportation of goods.

Besides, the prolonged shortage of empty containers has caused a sharp increase in the cost of coffee exports, reducing the competitiveness of Vietnamese coffee in the world market.

The value of coffee exports to most continents decreased compared to the first quarter of 2021, in which, the highest rate of decline in exports to Oceania was 18.1%. The lowest decrease was to Africa, down 0.5%. Compared to the second quarter of 2020, coffee exports to most continents decreased, except for Asia, which increased by 30.9%.

The export value of Vietnamese coffee to most of the main markets in the second quarter of this year decreased compared to the first quarter of 2021, except for Russia, Spain, Belgium, China, Algeria, Thailand and the US. Compared to the second quarter of 2020, the value of coffee exports to many main markets decreased, except for Germany, Japan, China, and Thailand.

Regarding types, the export value of Robusta and Arabica coffee made in Vietnam decreased compared to the first quarter of 2020, but exports of processed coffee and Excelsa coffee increased. Compared to the second quarter of 2020, the export value of most types of coffee increased, except for Arabica coffee.

In the first 6 months of 2021, Robusta coffee exports reached 729.700 tons, worth USD1.15 billion, down 9.3% in volume and 3.1% in value compared to the first 6 months of 2020.

In the first 5 months of 2021, most of the major import markets increased their coffee imports from other markets but decreased the imports from Vietnam. With the complicated situation of the 4th COVID-19 wave in Vietnam, it is forecasted that Vietnam's coffee exports to major import markets such as the United States and Europe will continue to face difficulties in the short term.

Therefore, the Import-Export Department said that the world coffee price continued to increase.

There are three reasons for this conclusion. The first is the limited supply in the context of the complicated situation of the COVID-19 pandemic caused by the rising freight rates for Asian routes to Europe and North America and the shortage of containers that is expected to be prolonged.

Second, the frost situation in Brazil reduces the yield of the harvest by about 1%, and the production of the following season is also affected. Three, Vietnam - one of the major coffee exporters - is reducing inventories.

From the second quarter of 2021, the world coffee price fluctuates following an increasing trend compared to the first quarter of 2021. At the end of July 2021, the world coffee price continuously peaked, even the highest in history.