Market to bode well for coffee export. (Photo: VNA)Hanoi (VNA) – Vietnam’s coffeeexports are expected to rise in 2018 thanks to projected annual increases of7.1 percent for domestic yield and 1.3 percent for global consumption in2017-18 crop.
According to the US Department ofAgriculture (USDA), ending inventories of global coffee will reduce by 2.76million bags in 2017-18 to about 29.27 million bags, the lowest level since2011-12. The figures for Vietnam were 70,000 and 1.11 million bags.
The USDA was positive about Vietnam’s coffeeproduction, saying the country would produce a record crop in 2017-18 at 29.9million bags, up from the body’s prior estimate at 28.6 million bags and from26.7 million bags in 2016-17. Vietnam forecasted its own yield at between 26and 26.5 million bags.
Do Ha Nam, deputy head of the Vietnam Coffee& Cocoa Association, said coffee market demand and prices are stable.
Nam added that domestic producers arekeeping their goods in stock in hope of higher prices, while foreign companiesare yet to intensify transactions due to slow business.
In the first month of 2018, Vietnam wasestimated to sell 173,438 tonnes of coffee overseas for 338 million USD. InJanuary, the local market recorded robusta prices growing 0.8 percent from theprevious month to hit 1,644 USD per tonne.
The marginal increase was attributed to the significantamount of 2017’s ending stocks, which was a result of reduced export volume.Last year, coffee export quantity stayed at 1.4 million tonnes, an annualdecrease of 19 percent. The year saw the average price for coffee exportsreaching 2,249 USD per tonne, up 20.1 percent year on year. As such, despitelower quantity, export value was at 3.2 billion USD, down just 2.7 percent annually.
Vietnam’s coffee exports to major marketsexperienced huge reductions in 2017 compared to 2016. In recent months, asharvesting season began, the exports have been bounced back in the EU, Russia,Algeria and the Philippines.
According to the International CoffeeOrganisation, global supply would be better in the last half of 2018 and coffeeprices were less likely to drop in the short term as the world’s two biggestgrowers Brazil and Vietnam both saw consecutive export volume decreases in pastmonths.-VNA
VNA
