Vietnam’s coffee exports have experienced a significant price increase in 2024, despite a drop in the total volume exported. According to recent data from the central bank and the General Statistics Office, the export value of Vietnamese coffee has soared, driven by higher prices and strong global demand.
In the first 11 months of 2024, Vietnam exported nearly 1.2 million tons of coffee, valued at approximately 4.84 billion USD. While the volume fell by 15.4% compared to the same period in 2023, the export value rose by 32.8%. This price increase makes coffee the agricultural product with the most significant price hike among Vietnam’s top export items.
On November 11, 2024, coffee prices reached a record high of 5,818 USD per ton, marking the highest price level ever for Vietnamese coffee. The average export price for the year so far is estimated at 4,838 USD per ton, reflecting a 56.9% increase compared to 2023.
This surge in coffee prices comes amid a global rise in commodity prices, including gold, as investors buy in anticipation of supply delays, particularly from China. Freight costs have also risen, contributing to the volatility in the market. Additionally, Brazilian coffee production is expected to drop in the 2024-25 season, with a revised forecast of 66.4 million bags, down from an earlier estimate of 69.9 million bags. Brazil’s coffee inventories are expected to fall by 26% compared to last year, further tightening global supply.
In Vietnam, adverse weather conditions have affected key coffee-growing regions, raising concerns over potential disruptions to the harvest. However, experts predict that as more coffee from Vietnam enters the market, prices will eventually adjust downward in the medium term.
Despite the challenges, the coffee sector continues to thrive, benefiting from both global demand and the rising prices that have helped offset the decline in export volumes.
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