Vietnam shipped 520,000 tonnes of coffee worth US$1 billion in the first quarter of calendar year 2018.
This is an increase of 15.1 percent in volume, but a decrease of 1.7 percent in value compared to the same period last year, according to the Ministry of Agriculture and Rural Development.
Germany, the US, Indonesia, Italy and Japan were among the country’s main destination markets. Germany accounted for more than 14 per cent of exports though its purchases fell by 18 per cent year-on-year.
The sector’s export target for the 2017-18 crop is 1.5 million tonnes.
A total of 920,00 tonnes were exported during the first six months of the current crop year (October – September), meaning less than 600,000 tonnes have to be exported to meet the target.
The market is quiet
“The market is currently quiet” – said Đỗ Hà Nam, deputy chairman of the Việt Nam Coffee and Cocoa Association. “There is no buyer or seller. In the short term coffee prices will not increase because there are is no driving factor. But starting in July, when the status of the coffee crop in Brazil, the world’s largest coffee producer, is clear, the market may fluctuate.”
But many experts agree there is no big threat this year since supply and demand are closely matched, he said.
Output to increase by 15 percent
The association said Vietnam’s coffee output is expected to increase by 15 percent this year, but would not create pressure because the increase would be much lower than in most years.
Việt Nam exported 1.4 million tonnes last year for $3.2 billion.
The country’s exports were down sharply last year due to a fall in output because of the impact of climate change, but thanks to high prices, the export value was down by only 2.7 per cent over 2016, the association said.
