Vietnam exported approximately 1.45 million tonnes of coffee during the 2023-2024 season, which ran from October of the previous year to September, according to the Vietnam Coffee-Cocoa Association (VICOFA). This impressive figure generated $5.32 billion in revenue. Although the export volume saw a decrease of 12.7%, the revenue surged by over 30%, marking an unprecedented achievement for the industry.
The European Union emerged as Vietnam’s largest coffee export market in this period, with exports valued at $2 billion—an increase of 41% from the previous season. This accounted for 38% of the total volume and 37% of the export value.
The coffee market experienced remarkable changes this season, with Do Ha Nam, vice chairman of VICOFA, highlighting a significant milestone. “For the first time, Vietnamese coffee commanded the highest prices globally, with Robusta export prices surpassing those of Arabica. London futures prices exceeded $5,000 per tonne, occasionally climbing above $5,500,” he stated.
Additionally, the EU’s Deforestation Regulation is viewed as a considerable advantage for Vietnamese coffee exports, as the industry has adequately prepared for its implementation. Nam expressed optimism about the future, stating, “If this regulation is implemented as initially planned, Vietnamese coffee will continue to be a global favorite as the most compliant supplier.”
Market expert Nguyen Quang Binh described 2024 as a “miraculous year” for the coffee industry, noting that both the Vietnamese and global markets experienced an extraordinary price surge, with prices rising 1.5 times compared to the previous year.
However, challenges persist for many coffee firms. Binh pointed out that “rapid price increases amid limited supply have disrupted the supply chain,” resulting in delays in delivery and negative reactions from partners, buyers, and roasters.
Looking ahead, Binh anticipates continued volatility in the market and emphasizes the necessity for industry adjustments to ensure sustainable growth. “Vietnam’s coffee industry must address supply chain gaps and restore export partner confidence. Farmers should prioritize quality improvement over rapid expansion to avoid oversupply. Furthermore, businesses should invest in processing and value-added products alongside raw coffee trading to ensure long-term sustainable growth,” he advised.
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