Robusta coffee prices continue to benefit from information regarding concerns that excessive drought in Brazil and Vietnam in recent times will cause damage to coffee trees and limit global output.

The Ministry of Agriculture and Rural Development forecast that Vietnam’s coffee output in the 2023–2024 crop year is estimated to fall by 20% compared to the previous crop year due to adverse weather conditions that come earlier than usual in recent times.

According to experts, the recent coffee crop was very successful as prices increased and farmers earned good profits even though output decreased. High prices will help farmers have the motivation to take better care of their coffee gardens, as well as consider plans to expand growing areas.

Coffee increasingly affirms its role as one of Vietnam's key export products, contributing significantly to the national economy.

With accounting for more than 10% of the country’s revenue from agricultural exports and 3% of total GDP, the coffee industry is not only an important source of income for farmers but also an indispensable part of Vietnam's economic picture.

Last year’s Vietnamese coffee exports hit a record high of 1.61 million tons, bringing in US$4.18 billion, reflecting the strong growth of this industry.

The goal of increasing coffee export value this year is being built on a quite good foundation. However, local businesses still need to devise careful export strategies to make the most of existing advantages and maintain long-term results.

According to the Vietnam Coffee and Cocoa Association (Vicofa), it is forecast that coffee exports will continue to be favorable in 2024. In particular, coffee prices are currently increasing sharply despite a possible fall in coffee output exported to the world market. However, export turnover may enjoy breakthrough growth with coffee exports likely to reach between US$4.5 and US$5 billion this year.

Source: VOV