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Vietnam sets coffee export target of US$6 billion by 2030

 Last Update: 2022-01-21
 Source: Internet
 Author: User

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(NDO) In 2021, Vietnam’s coffee export volume and export value will reach approximately 1.
52 million tons and US$3 billion, a year-on-year decrease of 2.
7% and an increase of 9.
4% respectively
.
Notably, in December 2021, coffee export prices hit their highest level since June 2017
.
However, in order to increase the export value and reach 6 billion US dollars by 2030, the core factor remains the promotion of deep processing
.

Coffee exports to earn about $3 billion in 2021

Statistics from the Import and Export Bureau of the Ministry of Industry and Trade of Vietnam show that social distancing has eased, customs clearance is convenient, and the increase in world demand is the factor that will boost the recovery of Vietnam’s coffee exports by the end of 2021
.
It is estimated that Vietnam’s coffee exports in December 2021 will reach 130,000 tons and value of US$305 million, an increase of 21% and 26.
2%, respectively, compared with November 2021, and a year-on-year decrease and increase of 6.
5% and 20.
3%, respectively
.
Overall, Vietnam’s coffee exports in 2021 will total 1.
52 million tons, down 2.
7 percent from 2020, and the export value will total about US$3 billion, up 9.
4 percent from 2020
.

　　It is estimated that in December 2021, the average export unit price of Vietnamese coffee was US$2,344 per ton, a new high since June 2017, an increase of 4.
3% month-on-month and a year-on-year increase of 28.
7%
.
Overall, the average unit price of Vietnam's coffee exports in 2021 will be about US$1,969 per ton, an increase of 12.
4% over 2020
.

　　In 2021, Vietnam’s coffee exports will be dominated by Robusta coffee
.
In the first 11 months of 2021, the export volume of Robusta coffee reached 1.
218 million tons, and the foreign exchange earned 2.
02 billion US dollars.
Compared with the same period in 2020, the volume decreased by 1.
4%, but the value increased by 9.
5%
.
Among them, Robusta coffee exports to many major national markets showed a downward trend, such as: Germany fell by 1.
4%; Italy fell by 11.
2%; the United States fell by 0.
6, Spain fell by 37.
8%; Algeria fell by 12.
2%
.
Conversely, Robusta exports to Russia and China increased by 15.
1%; and 61.
1%, respectively
.

　　At present, the domestic coffee market has become active, but not as good as in previous years
.
Acquisition production is lower because of the slow harvest (about 80% of the new season's production)
.

　　Global coffee prices are expected to remain high in 2022
.
In the context of the complex evolution of the epidemic, the supply of major producing countries such as Colombia and some South American countries is limited
.
In addition, congestion at international ports is expected to be prolonged
.

　　At present, due to the shortage of Arabica coffee, some coffee processing plants blend Arabica and Robusta coffee to reduce the price
.
In the long run, this can change consumer tastes and become more accustomed to drinking Robusta coffee, and at the same time be more beneficial to Vietnam’s Robusta coffee exports
.

　　Promote deep processing

　　Although Vietnam’s coffee exports will reach about US$3 billion in 2021, the export volume of deep-processed coffee is only 121,000 tons, earning US$433 million in foreign exchange
.
Then, although deep-processed coffee only accounts for 8% of coffee exports, its export value accounts for 15% of coffee exports
.

　　The Vietnam Coffee and Cocoa Association has set a goal for the next 10 years, with coffee exports reaching US$5-6 billion, more than double the current level
.
Currently, the average price of processed coffee is around $3,600 per ton, while the price of green coffee on trading platforms is around $2,400
.
Currently, Vietnamese coffee, which surpasses Brazil, is the cheapest in the world due to the deduction mechanism
.
According to this, the price in Vietnam has to be deducted by US$450-500 per ton
.

　　Therefore, in order to reach the export value of 6 billion US dollars, the proportion of processed coffee must be increased from the current 10% to about 25% or more
.
However, in the current background, due to the technical level, the complex operation process of processing plants, and the awareness of farmers, it is a great challenge for enterprises to increase the proportion of processed coffee
.

　　So far, there are 160 roasted coffee processing plants, 11 blended coffee processing plants and 8 instant coffee processing plants across the country
.
The number of coffee deep-processing manufacturers is still small, and most of their output is below the rated power
.

　　On the other hand, if the coffee industry is to grow, it needs to move in the direction of processing
.
Currently, Vietnamese processed coffee brands do not have a foothold in the world market
.
At the same time, it takes a lot of money and effort to create a coffee brand
.

　　In early 2022, Global Trade Unicom Co.
, Ltd.
, headquartered in Ho Chi Minh City, Vietnam, exported two containers of MeetMore branded coffee to the EU market
.
This is instant coffee blended with other produce such as: Noni, Mint, Taro, Mango, Coconut, Mung Bean
.

　　The head of the company said that this is the first time the company has exported coffee to the EU
.
Before that, its coffee had been exported to South Korea, Australia and the Middle East
.
As processing raw materials, the quality of agricultural products must be qualified, which is the core element to help enterprises export to this market smoothly
.
In addition to the EU, the company's fruit-flavored coffee will be exported to the US and Russia by the end of January 2022, according to the plan
.

　　Coffee is one of the top six commodities with an export value of over US$3 billion, and one of the agricultural products with the highest export value in agriculture
.
Coffee exports account for about 7% of Vietnam's total agricultural exports
.
In addition to European and American consumers, Asians also gradually understand and like Vietnamese coffee beans
.
Many experts believe that if companies have the right entry strategy, demanding export markets such as the European Union, the United States, Russia, and Japan will become the “promised land” for Vietnamese coffee exports
.

　　The strategy of the future coffee industry is to promote processed coffee products (roasted coffee, instant coffee, etc.
) with the policy of "high yield, good quality, high added value" rather than focusing on the current quantity of green coffee
.
According to experts, despite the many challenges, promoting deep processing will be a key solution, not only to increase export value, but also to help the industry grow sustainably
.
(Finish)

Coffee export price deep processing

　　Coffee exports to earn about $3 billion in 2021

　　Promote deep processing

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