Vietnam's coffee prices are decreasing in accordance with the general trend of the world (Photo: baodautu.vn)Hanoi (VNS/VNA) - Although ranking second in the world, Vietnam'scoffee exports are plummeting.
The price of Vietnamese coffee exports is also much lower than the same type ofcoffee from other countries.
According to a report by the Agro Processing and Market Development Authorityunder the Ministry of Agriculture and Rural Development, coffee exports in thefirst eight months of 2019 were estimated at 1.17 million tonnes worth nearly 2billion USD, down 11.8 percent in volume and 21.4 percent in value over thesame period in 2018.
Since the beginning of the year, Germany and the US have continued to be Vietnam'stwo largest coffee consuming markets, with market shares of 13.7 percent and 9 percent,respectively.
Except for Vietnam’s increase in coffee exports to the Philippines and Malaysiaby 22 percent and 3.7 percent, respectively, exports to most of the remainingmajor markets decreased compared to the same period in 2018.
In addition to falling in export volume, the average export price of coffee inthe first seven months of 2019 was only 1,700 USD per tonne, down 11.2 percentyear-on-year.
In fact, Vietnam's coffee prices are decreasing in accordance with generalglobal trends. Global coffee prices continued to decline in the first months of2019 and fell to the lowest level in the past 13 years due to oversupply of theglobal coffee market.
For example, Vietnam is the largest source of coffee for Spain with two maintypes – unroasted coffee and decaffeinated coffee, accounting for 42.8 percentand 39.5 percent of the total import value of the world market in the firstfour months of 2019, respectively.
Spain’s average import coffee price reached 2,710 USD per tonne. Meanwhile, theaverage import price of coffee from Vietnam is only 1,780 USD per tonne, muchlower than the average import price in this market.
Notably, Spain’s average import coffee price from France reached a high of 15,670USD per tonne, almost nine times as much as the price imported from Vietnam.
The Ministry of Industry and Trade also cited data from the Korean TradeCommission. In the first four months of this year, Vietnam was also the largestcoffee exporter in this market with an output of 11,000 tonnes, but the priceonly reached 1,800 USD per tonne.
Brazil is the second country in terms of output with nearly 10,600 tonnes andits coffee is sold to the Republic of Korea (RoK) at 2,600 USD per tonne.Colombian coffee ranked third in RoK, with over 9,000 tonnes and an averageprice reaching 3,200 USD per tonne.
An expert in the coffee sector said that Vietnamese coffee is currentlyexported to over 80 countries and territories around the world with exportturnover of over 3 billion USD, accounting for 14 percent of market share and10.4 percent of value of global coffee exports, ranked second after Brazil.
However, the exported product is mainly coffee beans, accounting for about 90 percent.Therefore, the profit earned is not commensurate with the amount of goodsexported.
According to the Agro Processing and Market Development Authority, someVietnamese coffee products have not met standards required by demandingmarkets.
This authority predicts that the price of coffee in the short-term willincrease due to the supply decrease in major producing countries. In addition,the demand for coffee increasing faster than production will boost the demandfor coffee imports in the medium and long term./.
The price of Vietnamese coffee exports is also much lower than the same type ofcoffee from other countries.
According to a report by the Agro Processing and Market Development Authorityunder the Ministry of Agriculture and Rural Development, coffee exports in thefirst eight months of 2019 were estimated at 1.17 million tonnes worth nearly 2billion USD, down 11.8 percent in volume and 21.4 percent in value over thesame period in 2018.
Since the beginning of the year, Germany and the US have continued to be Vietnam'stwo largest coffee consuming markets, with market shares of 13.7 percent and 9 percent,respectively.
Except for Vietnam’s increase in coffee exports to the Philippines and Malaysiaby 22 percent and 3.7 percent, respectively, exports to most of the remainingmajor markets decreased compared to the same period in 2018.
In addition to falling in export volume, the average export price of coffee inthe first seven months of 2019 was only 1,700 USD per tonne, down 11.2 percentyear-on-year.
In fact, Vietnam's coffee prices are decreasing in accordance with generalglobal trends. Global coffee prices continued to decline in the first months of2019 and fell to the lowest level in the past 13 years due to oversupply of theglobal coffee market.
For example, Vietnam is the largest source of coffee for Spain with two maintypes – unroasted coffee and decaffeinated coffee, accounting for 42.8 percentand 39.5 percent of the total import value of the world market in the firstfour months of 2019, respectively.
Spain’s average import coffee price reached 2,710 USD per tonne. Meanwhile, theaverage import price of coffee from Vietnam is only 1,780 USD per tonne, muchlower than the average import price in this market.
Notably, Spain’s average import coffee price from France reached a high of 15,670USD per tonne, almost nine times as much as the price imported from Vietnam.
The Ministry of Industry and Trade also cited data from the Korean TradeCommission. In the first four months of this year, Vietnam was also the largestcoffee exporter in this market with an output of 11,000 tonnes, but the priceonly reached 1,800 USD per tonne.
Brazil is the second country in terms of output with nearly 10,600 tonnes andits coffee is sold to the Republic of Korea (RoK) at 2,600 USD per tonne.Colombian coffee ranked third in RoK, with over 9,000 tonnes and an averageprice reaching 3,200 USD per tonne.
An expert in the coffee sector said that Vietnamese coffee is currentlyexported to over 80 countries and territories around the world with exportturnover of over 3 billion USD, accounting for 14 percent of market share and10.4 percent of value of global coffee exports, ranked second after Brazil.
However, the exported product is mainly coffee beans, accounting for about 90 percent.Therefore, the profit earned is not commensurate with the amount of goodsexported.
According to the Agro Processing and Market Development Authority, someVietnamese coffee products have not met standards required by demandingmarkets.
This authority predicts that the price of coffee in the short-term willincrease due to the supply decrease in major producing countries. In addition,the demand for coffee increasing faster than production will boost the demandfor coffee imports in the medium and long term./.
VNA
