Price of exported coffee went down sharply and no sign of stopping
The price of coffee fell due to current global supply of coffee is excessive and trade tensions |
In particular, Germany and the US continued to be the two largest markets of coffee consumption of Vietnam in the first nine months of 2019 with market share of 13.3 percent and 8.6 percent respectively.
According to the Ministry of Agriculture and Rural Development, the sharp decline in average export price of coffee continued to be a factor leading to a decline in Vietnam's coffee exports to most traditional markets such as Germany, the US, Italy and Spain. Accordingly, the average export price of coffee in nine months of 2019 reached $1,717/tonne, a decrease of 9.6 percent over the same period in 2018.
In October 2019, world coffee prices fluctuated sharply. Comparing to the previous month, the price of robusta coffee delivered in November 2019 London market decreased $108/tonne to $1,212/ton. The price of coffee fell due to current global supply of coffee is excessive, combined with a slowing world economy and trade tensions.
The domestic coffee market also fluctuated sharply, following the trend of the world market. Compared to September 2019, the price of coffee in Central Highlands provinces decreased by VND 1,900 - VND2,300/kg to VND 30,800 –VND 31,300/kg. Robusta coffee price (FOB Saigon port) decreased by $104/tonne to $1,366/tonne.
The Ministry of Agriculture and Rural Development forecasted that coffee prices would remain on a downward trend until the end of this year as Vietnam has started its new harvest seasion, while Brazilian coffee inventories last year and in 2019 were still plenty and Brazilians were still selling strongly due to the low real exchange rate of the Real Brazil (BRL), which is benefiting Brazilian coffee growers.
Meanwhile, coffee reserves in major markets like the US continued to rise. According to the Green Coffee Association, as of the end of July 2019, total coffee inventories at warehouses across the US increased by 279,052 bags (60kg/bag) compared to the end of June 2019. In particular, the coffee reserve in New York port increased sharply compared to the end of June 2019 with the increase of 89,723 bags.
Facing this situation, the Vietnam Coffee Cocoa Association (VICOFA) recommended export enterprises calculate carefully when operating business. They should enhance buying and selling immediately, fixed prices before delivery. Besides that, while the price was low, it is necessary to avoid mass selling of coffee.
The VICOFA also proposed the Government and bank extend debt relief to farmers in the previous crop, facilitate to businesses to borrow at least a low interest rate for six months to temporarily store coffee during the period at the beginning of the frantic harvest.
Earlier, at the 125th session of the International Coffee Organisation (ICO) held in September, roasters and leading traders signed a statement about the sustainability of the world coffee industry. This was the first time that all leading coffee stakeholders from around the world have agreed, together with government representatives, to show a strong commitment to implementing solutions for sustainable development and comprehensive coffee industry in the spirit of common values and determination to meet the United Nation's sustainable development goals.
Related News
Notice for businesses exporting watermelons to China
09:40 | 25/04/2024 Customs
Textile and garment exports recovered positively
10:26 | 18/04/2024 Import-Export
Maintain the reputation of Vietnamese coffee amidst soaring prices
17:06 | 14/04/2024 Import-Export
Opportunities to develop a smart and sustainable packaging industry
14:14 | 19/04/2024 Import-Export
Latest News
Forum seeks to increase PPP investment effectiveness
13:48 | 25/04/2024 Import-Export
Linking businesses with cooperatives to increase the value chain
09:42 | 25/04/2024 Import-Export
Vietnam has a trade deficit of over US$17 billion with China
15:34 | 24/04/2024 Import-Export
Tra fish export to UAE jumps 67% in Q1
13:46 | 24/04/2024 Import-Export
More News
Pepper prices continue increase trend
13:44 | 24/04/2024 Import-Export
More efforts needed to maintain export growth to China: Insiders
13:55 | 23/04/2024 Import-Export
It is expected that there are higher orders and revenue in the second quarter from European businesses
09:31 | 23/04/2024 Import-Export
Vietnamese rice prices on the hike
15:08 | 22/04/2024 Import-Export
FDI flow into garment and textile sector bounces back
15:06 | 22/04/2024 Import-Export
Investors play a key role in developing the industrial park system
10:38 | 22/04/2024 Headlines
Find ways to a corporation for businesses in industrial parks
10:38 | 22/04/2024 Import-Export
Export turnover of two agricultural product groups grows three-digit
18:10 | 21/04/2024 Import-Export
Early warnings reduce risks in trade defense
18:09 | 21/04/2024 Import-Export
Your care
Forum seeks to increase PPP investment effectiveness
13:48 | 25/04/2024 Import-Export
Linking businesses with cooperatives to increase the value chain
09:42 | 25/04/2024 Import-Export
Vietnam has a trade deficit of over US$17 billion with China
15:34 | 24/04/2024 Import-Export
Tra fish export to UAE jumps 67% in Q1
13:46 | 24/04/2024 Import-Export
Pepper prices continue increase trend
13:44 | 24/04/2024 Import-Export