The recent continuous rising coffee prices have helped local coffee exports to achieve the target of US$1 billion in the first two months of the year, representing an increase of 50% against the same period from last year, according to figures given by the General Department of Vietnam Customs.
At the end of the trading session on February 28, coffee prices had increased by VND1,500 to nearly VND84,000 per kilo, the highest figure recorded so far. The increase in prices have therefore helped several export businesses secure orders until August.
On average, each tonne of coffee is traded at about US$3,100, posting a 43% year-on-year rise.
According to business representatives, exports have gained momentum following the Lunar New Year, thereby helping the product to earn more than US$1 billion during the two-month period.
Europe makes up the largest importer of Vietnamese coffee, duly accounting for 29% of total export turnover, followed by the United States, China, Russia, and Indonesia.
According to details given by the Vietnam Coffee and Cocoa Association (VICOFA), the shortage of supply source in the market has helped domestic exporters to enjoy a range of advantages.
Furthermore, the EU's inclusion of coffee in the category of having to meet the EU Deforestation-free Regulation (EUDR) as of mid-2023 will has also affected the price of the agricultural product.
Vu Duc Con, deputy director of the Dak Lak Department of Agriculture and Rural Development, assessed that coffee exports will continue to enjoy a number of benefits moving forward due to rising global demand.
VICOFA forecasts that coffee exports could reach between US$4.5 billion and US$5 billion this year. Last year, the nation exported more than 1.62 million tonnes of coffee, worth over US$4.2 billion.
Source: VOV
Keyword: VICOFA, coffee exports, coffee prices
