Coffee exports from Vietnam are expected to reach a volume of 1.5 million bags in coffee year 2017/18, up 0.8% in volume but down 10.5% in value, the Vietnam Coffee and Cocoa Association reported this week. Coffee earnings could total an estimated value of US$3 billion.
The total value of coffee exports in the first six months of 2018 reached US$ 1.98 billion, down 6% on the same period last year, according to the Department of Agro-product Processing and Market Development under the Ministry of Agriculture and Rural Development.
In particular, the revenue from coffee exports is estimated at US$287 million, an annual decrease of 2.4%. For a long time, coffee export revenue has been edging to a downward trend. Coffee prices have fallen sharply due to the increased supply from major coffee producing countries such as Brazil and Colombia.
In Vietnam, before entering the new crop, the already large inventory has put a lot of pressure on sales. Not to mention that large consuming markets already have reserves of coffee, if the price of coffee in Vietnam is high, they will use their reserves or buy coffee from other countries.
Currently, 90% of Vietnamese coffee is exported in the raw form with a quality and value lower than many foreign rivals. Selling in this form usually reaps low profits at high risk. In fact, domestic exporters and coffee growers have been hit hard when world coffee prices have fallen.