The Import and Export Department (Ministry of Industry and Trade) said that in December 2019, domestic robusta coffee prices decreased according to world prices.
According to statistics from the General Department of Customs, Robusta coffee exports in November 2019 reached 94.5 thousand tons, worth US $ 142.49 million, down 20.9% in volume and 29.6% in value. price compared to November 2018. Generally in the first eleven months of 2019, robusta coffee exports decreased by 6.4% in volume and 18.1% in value over the same period in 2018, reaching 1.376 million tons, worth $ 2.081 billion. In which, exports of robusta coffee to the US, Japan, Belgium, Algeria, England, and India increased; exports to Germany, Italy, Spain, Russia, and South Korea decreased.
The average export price of Robusta coffee in the first 11 months of 2019 reached 1,512 USD / ton, down 12.5% over the same period in 2018. In which, the average export price of Robusta coffee to key markets like the US reached 1,476 USD / ton; Germany reached 1,482 USD / ton; Italy reached 1,555 USD / ton.
In the first 11 months of 2019, the export of processed coffee increased 1% in volume, but decreased by 0.2% in value over the same period in 2018, reaching 34.9 thousand tons, worth $ 175.4 million. In which, processed coffee exports to Russia increased 57.6%; China increased 104.4%; The US increased 9.2%; Italy increased by 24.1%. In contrast, processed coffee exports to Japan and ASEAN decreased.
The average export price of processed coffee in the first eleven months of 2019 reached US $ 5,019 / ton, down 1.2% over the same period in 2018. In which, the average export price of processed coffee to Russia reached $ 6,149 / tons, down 6.1%; to Japan reached 4,787 USD / ton, down 0.9%. In contrast, the average export price of processed coffee to some markets increased, including: Germany increased by 0.2%, up to $ 3,757 / ton; The US increased 11.9% to 4,201 USD / ton; Indonesia increased 2.0% to 5,222 USD / ton.
Currently, Vietnamese coffee products are exported to more than 80 countries and territories, accounting for 14.2% of the global coffee export market share, ranking second after Brazil. In particular, roasted coffee and instant coffee for export accounted for 5.9% market share, ranking 5th after Brazil, Indonesia, Malaysia and India.
In terms of product structure, Vietnam’s coffee industry currently focuses on exporting raw, unprocessed robusta coffee, accounting for 94% of the total export volume. Therefore, the export value is not high and the position is not commensurate with the development potential of the industry in the world market.
Currently, there are 97 coffee bean processing establishments nationwide, with a total design capacity of 1,503 million tons, and a total actual capacity of 83.6%; 160 roasted and ground coffee processing establishments, with a total design capacity of 51.7 thousand tons of products / year; 8 instant coffee processing facilities, total design capacity of 36.5 thousand tons of products / year, total actual capacity of 97.9%; 11 blended coffee processing facilities, total design capacity of 139.9 thousand tons of products / year, total actual capacity is 81.6%.
On this basis, the Import-Export Department forecasts that in 2020 there will be a change in the structure of goods, businesses will focus on promoting the export of processed coffee to increase export value and create a foothold in the market. world school.
On the world market, in December 2019, the futures price of robusta coffee on the world market decreased compared to November 2019, while the price of arabica coffee increased.
In the last week of December 2019, the coffee market traded quietly as foreign importers were on a year-end holiday and preparing for the 2020 New Year. Robusta coffee prices fell due to lower financial funds. purchase contract. In its December 2019 report, the US Department of Agriculture (USDA) changed global coffee production from shortages to excess, as Brazil’s Robusta production increased sharply, compensating for arabica production. decrease because of the “every two years” cycle. Robusta production in Brazil is forecast to increase by 1.5 million bags, reaching a record high of 18.1 million bags in the 2019/20 crop. Meanwhile, the supply of coffee in Vietnam is plentiful because coffee growers have harvested about 60-70% of the output. It is expected that the harvest in Vietnam will last until the end of January 2020, reaching about 29.5 million bags (60 kg), equivalent to the 2018/19 crop.
The Import-Export Department forecasts that by 2020, arabica coffee prices will recover due to a decline in global coffee exports, while demand increases. According to USDA, in the 2019/20 crop, global coffee exports are expected to decrease by 4.7 million bags, to 115.4 million bags due to a decrease in exports by Brazil and Honduras; Global coffee consumption in crop year 2019/20 is forecast to increase 1.5% compared to crop year 2018/19, to 167.9 million bags. In particular, China will be the main coffee consuming country in 2020.
