MILAN – The global pandemic is expected to affect Vietnam ’s coffee exports beginning with the current quarter amid on the backdrop of the economic crisis and recession. The country’s coffee exports were down a modest 3% in volume and 5.6% in value, on year, during the first quarter of 2020.
Shipments fell to were 474,000 tonnes worth US$801 million over the January – March period. According to the Chairman of the Member Council of Vietnam Coffee Corporation and Vice Chairman of Vietnam’s Coffee and Cocoa Association (VIcofa)-Phan Xuan Thang, this was due to enterprises carrying out orders from the end of 2019.
In the first quarter of 2020, the Covid-19 pandemic did affected Vietnam ‘s coffee exports too much. However, it is forecast that in the second quarter as well as to the end of this year, the difficulties will increase significantly.
Purchasing power is weak due to the Covid-19 pandemic in the main consuming markets. In addition, governments in many countries including Europe and the US coffee shops and restaurants are closed or are reopening under strict regulations for social distancing
Instead of signing a new contract, roasters in importing countries are now increasingly using inventory. This affects the entire export and production system. Sales contracts of coffee have also reduced a lot.
“The consumption of coffee chains in the world is only about 20% compared to normal. My company is also currently very difficult in offering to partners. In the second quarter, Vietnam’s coffee industry may suffer great losses. I am afraid of a very strong price fluctuation during this period when consumption is limited,” Thang said.
Thang also gave a less pessimistic view saying: “If the coffee industry tries to surmount difficulties in 2020, 2021 will be a year of breakthrough growth. That is because demand is expected to increase sharply when major cultural and sport events in the world are simultaneously organized again after the pandemic.”
