HÀ NỘI — Vietnam’s coffee sector has kicked off 2024 with an extraordinary performance, showcasing its robust position in the global market. In the first two months of the year, the industry generated a staggering $1.58 billion in export revenue, marking a remarkable 26.2% year-on-year increase, according to the Ministry of Agriculture and Rural Development. This surge in value occurred despite a 28.4% decrease in volume to 284,000 tonnes, highlighting the significant impact of rising coffee prices on Vietnam’s export earnings.
A February to remember: “Brown Gold” reaches new heights
February alone witnessed a record-breaking performance, with Vietnam exporting over 193,000 tonnes of coffee, translating to $1.08 billion in revenue. This single-month achievement underscores the strong global demand for Vietnamese coffee. Notably, green coffee beans dominated the exports, accounting for over 178,000 tonnes, while processed coffee contributed nearly 15,000 tonnes.
The remarkable growth is attributed to a significant surge in export prices. The average coffee price during January-February reached $5,574.5 per tonne, a substantial 76.3% increase compared to the same period in 2023. In February, this figure climbed to an all-time high of $5,596 per tonne.
Nguyễn Nam Hải, Chairman of the Vietnam Coffee-Cocoa Association (VICOFA), highlighted the impact of these high prices, stating that the $1.08 billion revenue in February surpassed all expectations. The value growth was driven by both green coffee, which generated $956.58 million (up 107% year-on-year), and deeply processed coffee. Roasted, instant, and blended coffee exports reached over $123 million, representing 11.4% of the total value, signaling a strong trend towards value-added products that are elevating Vietnam’s “brown gold” on the international stage.
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Key markets and global dynamics
Germany, Italy, and Japan remain Vietnam’s primary export destinations, accounting for 16.6%, 9.4%, and 8.2% of the market share, respectively. Compared to January 2023, export values to these countries have increased significantly, demonstrating the consistent appeal of Vietnamese coffee in these traditional markets.
The global coffee market is experiencing dynamic shifts. The potential impact of La Niña, which may replace El Niño, could affect coffee production in Brazil, the world’s largest exporter. This could create opportunities for Vietnam to further solidify its position. However, VICOFA advises careful monitoring of the market, as Brazil’s production decline is expected to begin from July onwards.
Navigating challenges and seizing opportunities
To achieve the ambitious $6 billion export target, the Vietnamese coffee sector must focus on maintaining stable cultivation areas, enhancing quality to meet international standards, and strengthening links between purchasing and deep processing. Diversifying markets to reduce reliance on a few major partners is also crucial.
Leveraging Vietnam’s leading position in Robusta coffee, which constitutes 95% of its production, will be key to sustaining growth.
Deputy Minister of Agriculture and Rural Development, Phùng Đức Tiến, expressed confidence in the industry’s ability to meet its target, emphasizing the need for continued investment in processing technology and market expansion. The ministry is collaborating with VICOFA and enterprises to develop a long-term strategy for sustainable development and brand enhancement.
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By leveraging its strengths and addressing market challenges, Vietnam’s coffee industry is poised for continued growth and success on the global stage.
