The United States Department of Agriculture (USDA) announced on Thursday that Vietnam, the leading producer of robusta coffee globally, is expected to harvest 29 million 60-kg bags of coffee in the 2024/25 season, which spans from October to September.
In addition to this forecast, the USDA revised its estimates for the two previous seasons upwards, attributing the adjustments to increased prices that have incentivized farmers to adopt improved crop care practices.
The surge in robusta coffee prices, which reached a record high in April, has been driven by heightened demand and constrained production, particularly within Asia. Indonesia, another significant robusta producer, also contributes to the global supply of this coffee variety, commonly used in instant coffee and ready-to-drink beverages.
High global coffee prices have bolstered Vietnam’s coffee industry, despite several years of challenging weather conditions. Farmers have employed irrigation and intercropping techniques to counteract the impacts of drought and high temperatures,” the USDA’s Hanoi office reported.
For the current crop year (2023/24), the USDA increased its production estimate by 6%, predicting a total of 29.1 million bags.
Looking ahead, the USDA forecasts that Vietnam’s green bean exports will reach 24.4 million bags in the 2024/25 season. This projection is based on sustained high export prices and robust demand.
However, the USDA’s projections are more optimistic than some other market forecasts. A major coffee trading firm recently estimated that Vietnam’s 2024/25 crop would only yield 24 million bags, citing concerns that the hot, dry weather in April could negatively affect the flowering phase of the new crop.