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The Institute of Policy and Strategy for Agriculture and Rural Development, Vietnam, has forecasted the country’s coffee exports to increase in the coming months due to an increased global demand
As the country starters preparing for the harvest of the season, free trade agreements are also proving to be beneficial in promoting Vietnam’s coffee exports for the foreseeable future.
According to the Vietnam Coffee and Cocoa Association, coffee exports in November and December 2021 is expected to reach approximately 130,000 tons each month. If the current price can be maintained, it is expected to bring in US$600mn before the year ends and reach the annual coffee turnover threshold of US$3bn.
The price hike can be largely attributed to supply disruptions in Vietnam and expensive logistics costs for traders importing from Brazil. The year-end holiday season is also expected to contribute as restaurants and hotels face high demand, in the light of eased travel restrictions.
The Ministry of Agriculture and Rural Development, Vietnam (MARD), said that the factors causing instability largely due to the COVID-19 pandemic is still prevalent and has led to difficulties in logistics and trade activities. The Ministry considers this to be a crucial factor that will create resistance in coffee prices for the near future.
The Ministry also advises the coffee farmers in the country to responsibly invest in intensive farming and fertilising and to keep in mind the risks involved with a volatile market such as coffee. MARD also said that intercropping with produce such as durian and avocado has also been a major factor contributing to plummeting coffee prices in the global market.