Coffee exports record four-year high

Coffee exports record four-year high

Vietnamese coffee prices have skyrocketed in recent weeks amid the country exporting 1.18 million tonnes of coffee worth US$2.23 billion during the opening nine months of the year, according to statistics compiled by the General Department of Vietnam Customs.

This figure represents a year-on-year fall of 5.4% in volume and a rise of 3.4% in value compared to the same period from last year.

Most notably, the nation’s coffee export price reached the highest level since December 2017, with the average export price in September alone increasing by 4% to US$2,093 per tonne from August and a rise of 11% compared to September, 2020.

During the nine-month period, the average export price of Vietnamese coffee surged by 9.2% to US$1,884 per tonne, an increase of 9.2% against the same period from last year.

Furthermore, Vietnamese coffee exports to almost all major markets soared, with the exception of the United States, Spain, Belgium, and the Philippines.

These results indicate positive signs for the local coffee sector amid the complicated developments of the COVID-19 pandemic and high transportation costs.

The Import-Export Department under the Ministry of Industry and Trade forecasts that local coffee exports will continue to increase due to a global rise in the consumption demand and social distancing measures gradually being eased.

According to the Vietnamese Trade Office in Sweden, despite Nordic countries mainly importing Arabica coffee, Vietnamese unroasted or decaffeinated coffee has plenty of room for development in the potential market.

Moreover, the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) will serve to help local coffee enjoy competitive advantages in the Nordic market, with tariffs being slashed to 0%.

Thanks to these prospects, domestic firms are advised to devise proper marketing strategies and develop brands for specialty coffee and other coffee products, as well as investing in designing their websites, company brochures, and product specifications to make further inroads into the demanding market.

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