MILAN – Vietnam ’s export earnings from coffee rose to US$4.18 billion in 2023, a 3.1% increase compared to 2022, reports the Vietnam News Agency (VNA). Higher Robusta prices offset a 9.6% slump in export volumes. Robusta quotes in the world market hit a 28-year peak at the end of 2023 due to low inventories and sale restrictions.
The average export price in 2023 was US$2,834 per tonne, an increase of 14.1 % over the previous year.
According to traders and analysts, prices could rise even further due to concerns about supply shortages.
In recent years, Vietnam has been focusing on solutions to promote the sustainable development of its coffee industry.
This includes ensuring origin traceability and meeting the new European Union Deforestation Regulation (EUDR) standard.
Robusta coffee futures in London began 2024 on the low side falling to a 2-week low. The Ice Robusta main contract for March delivery closed $37 down to $2,804 on forecasts for rain later this week in Vietnam’s Central Highlands.
Dealers quoted by Reuters said farmers in Vietnam are seemingly unperturbed by current prices close to record highs and have adopted a reserved approach to selling in the hope of further gains.
Arabica coffee recovered some of last Friday’s sharp losses that were seen as excessive in illiquid holiday trade, according to barchart. Ice Arabica‘s main contract gained 185 points to end the day at 190.15 cents per lb.
Gains were limited by favourable weather forecasts from Brazil’s coffee regions and by the weakening of the Brazilian currency, the fell to a 1-week low against the dollar on Tuesday.
Brazil’s National Supply Company (Conab), responsible for food supply and statistical data, will issue its first official estimate for the 2024/25 coffee season on January 18th.
