HSV VIETNAM GROUP) – Vietnam's coffee industry gradually affirmed its position when it first set a record of export value of up to 4 billion USD last year.
Entering 2023, according to forecasts of the Department of Quality, Processing and Market Development - Ministry of Agriculture and Rural Development, Vietnam's coffee industry will continue to be favorable thanks to resilient world demand and guaranteed domestic supply in both output and quality, meeting export requirements.
Coffee prices increased at the beginning of the year
According to statistics, coffee exports in 2022 will reach 1.78 million tons with a value of more than 4 billion USD, an increase of 13.8% in volume and an increase of 32% in value compared to 2021 thanks to rising prices. The average export coffee price in 2022 reached 2,281.7 USD/ton, an increase of 16% compared to 2021. The Import-Export Department - Ministry of Industry and Trade informed that as of mid-February, Robusta and Arabica coffee prices on the world market continued to increase. Information showing that the US economy is better has stimulated hedge funds to step up buying.
In addition, unfavorable weather factors in Brazil and reports of reduced inventory have had a positive impact on the world coffee market. The Coffee Bean Association (GCA) in North America reported that inventories in January 2023 decreased by 1.8% compared to December 2022, down to 6.265 million bags. Therefore, the increasing price trend is forecast to continue in the near future.
In the domestic market, the price of Robusta coffee in February in the Central Highlands reached 48,000 VND/kg, an increase of about 7,000 VND/kg compared to January. According to coffee industry expert Nguyen Quang Binh, the increase in Vietnamese coffee prices is because farmers have invested in quality, which is the basis for raising coffee prices. "Without investing in deep processing such as roasting or instant coffee, farmers can sell raw coffee 1.5 or 2 times higher than the normal rate when following the planting and harvesting process required by the buyer" - Mr. Nguyen Quang Binh cited.
In addition, in the first 2 months of 2023, Vietnam's coffee export output decreased, showing that Vietnam's supply is not as abundant as expected, which is a factor causing coffee prices to increase.
Outstanding development
At the International Conference on Vietnam's coffee industry taking place in Hanoi at the end of 2022, Mr. Phung Duc Tien, Deputy Minister of Agriculture and Rural Development, assessed that Vietnam's coffee industry has developed significantly in terms of area, productivity, and output, gradually building a modern coffee processing industry, diversifying products, suitable to market tastes. However, he pointed out that our country's coffee production also faces many challenges and difficulties due to high export growth but not stable and sustainable, forms of linkage from production to purchasing, processing and consumption of products are not closely linked, and the coffee industry still has many potential risks due to fluctuations in climatic conditions and consumer markets.
Sharing at the press conference introducing the Buon Ma Thuot Coffee Festival taking place in Ho Chi Minh City recently, Ms. Vo Thi Ha Giang, Communications Director of Trung Nguyen Legend Group Joint Stock Company, cited evidence that Colombia only exports nearly 1 million tons, mainly Arabica coffee, but ranks 3rd in the world in terms of turnover with green coffee export revenue reaching 3.2 billion USD in 2022.
Colombia's coffee production and export efficiency comes from a policy that focuses on improving the quality of coffee beans and growing areas for about 5% of the cultivated area to create high quality coffee and many other branding activities. According to Ms. Ha Giang, Vietnam can learn from Colombia's success story, and from there have an orientation and investment strategy to develop high-quality coffee products and specialty coffee to bring added value and higher profits.
According to Mr. Le Duc Huy, General Director of 2-9 Dak Lak Import-Export Company Limited (Simexco Daklak), after a long time, with the efforts of farmers and businesses, Vietnamese coffee is gradually asserting its value and quality, gradually raising its brand. However, what worries him is that the Vietnamese coffee brand is still not well known to the world. "When it comes to wine, we immediately think of France, but when it comes to coffee, world consumers still do not know about Vietnam, while we are the world leader in Robusta coffee, second in coffee export value (after Brazil). Vietnam has good coffee but the brand is still unknown to many consumers in the world" - Mr. Huy cited.
Mr. Do Ha Nam, Vice Chairman of the Vietnam Coffee and Cocoa Association, Chairman of the Board of Directors of Intimex Group, said that with competitive pressure and current market developments, Vietnamese coffee needs to quickly find a place for itself. The only way is for businesses to invest in depth, grow high-yield varieties, create differentiated coffee products, and build a sustainable commodity market. At this stage, businesses also need support from the Ministry of Agriculture and Rural Development, international organizations, and the world's leading roasters through sustainable coffee programs, quality coffee with international certifications such as: 4C, Rain Forest, Fairtrade...