Investment Tips 29-12-2022 12:41 33 Views

Vietnam’s 2022 Coffee Exports Increased by 10.1%


Vietnam’s 2022 coffee exports increased by 10.1% year over year

The second-largest coffee exporter in the world, Vietnam sends more than 1.5 million metric tons of green coffee to consumers around the world each year. Running a successful café requires finding the best supply of coffee beans for your company. Different providers offer it in varying quantities and qualities, and some will allow you choose whether it comes in ground or whole bean form. Making a decision is simple when supported by expert guidance and real-world testing.

The General Statistics Office reported on Thursday that it expects Vietnam’s exports of coffee to have climbed 10.1% from a year earlier to 1.72 million tonnes in 2022, or 28.7 million 60kg (130 lb) bags.

Vietnam, the world’s largest producer of robusta beans, had an increase in coffee export revenue of 28.3% to $3.9 billion over the course of a year, according to the agency. It shipped 140,000 tonnes of coffee in December, valued at $314 million, down 17.2% from a year earlier.

By seeking to reach a revenue of USD 6 billion by 2030, the Vietnamese coffee sector is expected to maintain its second-place ranking in the globe in terms of export and production. However, the reality is less rosy when repeated prices have dropped significantly in recent years, including during this crop of coffee in 2021.

More about Vietnam’s coffee exports

According to the Ministry of Industry and Trade’s Import and Export Department, domestic Robusta coffee prices declined over a 10-day period in February 2019 in line with international coffee prices. The price of Robuta has decreased from 0.9 to 1.5 percent as of 9/2/2021. In Di Linh and Lam Ha districts of Lam Dong province, the price of Robusta multiplied by the lowest bucket on 18/2/2021 was 32,700 VND/kg; the highest level was VND 33,400/kg in Cu Mgar district of Dak Lak province.

This price is about VND 10,000/kg less than it was during the same time period in 2016. Analysts, it will be challenging to raise the price of Vietnamese coffee given the selling pressure brought on by the harvest of the new crop of coffee and the poor purchasing power of merchants and speculators.

Another somewhat non-commodity is coffee. This is  the only commodity that relies on sensory qualities as well as objective criteria like moisture content or purity. There is even a market within the spectrum for completely differentiating items that play on provenance, sustainability, etc. At that point, the market begins to resemble the wine market.

Robusta is a specialty of Vietnam (at 95%) due to climate. Now that robusta is traded more frequently as a pure commodity than arabica, flavor is primarily a consideration.

The post Vietnam’s 2022 Coffee Exports Increased by 10.1% appeared first on FinanceBrokerage.

Other news