COVID-19 causes coffee prices to tumble to record 10-year low
The first quarter of the year saw the country export 474,000 tonnes of coffee worth US$801 million, a year-on-year decline of 3% in volume and 5.6% in value, according to figures released by the Agro Processing and Market Development Authority (Agrotrade) under the Ministry of Agriculture and Rural Development.
Among the largest consumers of the Vietnamese coffee, Germany, the United States, and Italy lead the way with the average export price throughout the reviewed period dropping by 2.8% to $1,692 per tonne on-year.
The Agrotrade notes that March saw the domestic coffee market experience wild fluctuations in terms of price, matching the trends seen in the global market. Evidence for this can be seen in the price of Robusta coffee from provinces in the Central Highlands which endured a fall of up to VND800 per kilo to approximately VND30,700 per kilo compared to February.
Elsewhere, the domestic price of Robusta coffee plummeted to a record 10-year low, causing enterprises to face a shortage of supply sources for export as coffee growers began to limit sales in order to bring the price under control.
The price of coffee is not expected to immediately recover as import and export activities have been suspended due to the increasingly complicated developments relating to the novel coronavirus (COVID-19) which has forced many freight forwarding ports to close, according to insiders.
Moreover, there has been lower levels of coffee consumption with firms lacking purchasing power as a result of the COVID-19. This is especially true due to the imposition of trade restrictions by major markets such as the EU and the US, which has caused heavy losses for the coffee industry, especially growers.
Có thể bạn quan tâm
Asia Coffee-Vietnam prices inch higher on supply crunch, fresh virus curbs Vietnam’s domestic coffee prices edged up this week due to tight supplies at the end of the season and the government’s social distancing order
Green mango exports to Australia witness surge in first half Figures released by the Australian Department of Agriculture indicate that exports of Vietnamese green mangoes to Australia have doubled in the first
Singaporeans snatch newly imported Vietnamese fruit Vietnamese lychees have been imported into Singapore for the first time on a large scale and are now available in the NTUC FairPrice supermarket chain
Asia Rice-Virus slows Indian exports; heavy flooding hits Bangladesh India’s rice export prices rose this week as the worsening coronavirus crisis in the country caused logistical snags, while widespread flooding in Bangladesh
Hung Yen promotes sales of agricultural products Hung Yen province has over the past several years increased trade promotion activities at festivals and trade fairs