Coffee industry in Vietnam turns bitter
The Ministry of Agriculture and Rural Development, in turn, estimated the export volume in the first quarter when compared to the same three months last year to have dipped 5.4% to 449,000 tons with revenue jumping 25.6% to US$1 billion.
Average prices in the first quarter ticked up 32% on year to US$2,262 a ton, said MARD, adding that Germany and the US were the two largest buyers with market shares of 17% and 16%, respectively.
Markets witnessing sharp growth over the same period last year were Belgium (230%), the Republic of Korea (79%), the US (60%), Algeria (50%), Spain (34%), Germany (29%), the UK (27%), Japan (21%) and Italy (20%).
Sales prices for the quarter followed the upward pulse of the global market.
Compared to the end of February 2017, the price of coffee Robusta in the Central Highlands at the end of March rose by US$.09-US$.10 (US$ VND2,000-VND2,200) to US$2.03- US$2.07 (VND46,000-VND46,900) per kilogram.
Coffee prices in Dak Lak, the largest coffee bean-growing province in the country, stood at US$2.08-US$2.11 (VND47,300-VND48,000) per kilogram as stockpiles remain low.
According to Nam, coffee prices look to continue to increase in the near term as farmers are holding back waiting to see if prices will rise even further.
Despite the higher coffee prices, the profits per hectare remain lower than other alternative crops such as fruit trees and pepper— resulting in many farmers getting out of the coffee business entirely.
Solutions to boost coffee exports
The small production scale and lack of sophisticated skills of farmers have stopped them from becoming major players in the global market, said Nam, noting the lack of access to credit has prevented them from replanting with the latest varieties and newest technology.
Meanwhile, farmers collectively have processed 10% of the total coffee output for the year but instant, roasted and ground coffee products, have not achieved a high volume, a strong brand or the quality reputation to compete with top global brands.
Huynh Quoc Thich, deputy director of Dak Lak Agriculture and Rural Development Department, notes that most actors in the coffee segment in the province have not paid sufficient attention to quality.
He added that the existing sales prices have not incentivized coffee growers to produce high-quality coffee.
Meanwhile, he looks for exports to drop 25-30% this year. That won’t turn around until actors in the segment comprehensively collaborate to promote brand recognition, food safety, and boost added value, he concluded.
Related News
Vietnam, Korea Customs sign AEO MRA
11:07 | 26/12/2024 Customs
Prioritizing semiconductor workforce training
09:16 | 15/12/2024 Headlines
Vietnam-Cambodia: Looking back on journey of cooperation
14:45 | 11/12/2024 Customs
Vietnam-China e-commerce: A perspective from Lang Son border
13:39 | 06/12/2024 Headlines
Latest News
Sustainable opportunities for Vietnamese goods to penetrate the global market
13:54 | 30/12/2024 Import-Export
Top brands in Việt Nam in 2024 revealled
13:54 | 30/12/2024 Import-Export
Vietnamese catfish exports to hit $2 billion mark this year
13:52 | 30/12/2024 Import-Export
Is the 12% export growth target for 2025 achievable?
13:50 | 30/12/2024 Import-Export
More News
Increase revenue from building a sustainable supply chain
11:04 | 30/12/2024 Import-Export
Coconut export enter acceleration cycle
11:02 | 30/12/2024 Import-Export
Pepper export value reaches highest level since 2017
17:58 | 29/12/2024 Import-Export
Fraudulent planting area codes threaten Việt Nam’s durian exports
17:52 | 29/12/2024 Import-Export
Industrial production maintains rapid and throughout bounce back
14:26 | 29/12/2024 Import-Export
Halal Market: The Door is Wide Open, How to Exploit It
14:23 | 29/12/2024 Import-Export
Việt Nam becomes second biggest garment exporter globally
18:06 | 28/12/2024 Import-Export
Fraudulent planting area codes threaten Việt Nam’s durian exports
18:03 | 28/12/2024 Import-Export
Trade remedies protect domestic industries
13:49 | 28/12/2024 Import-Export
Your care
Sustainable opportunities for Vietnamese goods to penetrate the global market
13:54 | 30/12/2024 Import-Export
Top brands in Việt Nam in 2024 revealled
13:54 | 30/12/2024 Import-Export
Vietnamese catfish exports to hit $2 billion mark this year
13:52 | 30/12/2024 Import-Export
Is the 12% export growth target for 2025 achievable?
13:50 | 30/12/2024 Import-Export
Increase revenue from building a sustainable supply chain
11:04 | 30/12/2024 Import-Export