Opportunities for Vietnamese Coffee Beans Export to the US
Vietnam is anticipating more chances in the US market as the price of its coffee exports is rising. In the first five months of 2022, Vietnam raked in USD 124.95 million from exporting 50,580 tons of coffee, representing a fall of 2.9% in volume, but a rise of 23.6% in value compared to last year, as reported by the Import-Export Department of the Ministry of Industry and Trade. Accordingly, Vietnam received USD 2,470 per ton, up 27.2% over the same period in 2021.
Specifically, Vietnamese Robusta coffee beans export to the US increased 7.1% in volume and 36% in value year-on-year, while its export price rose by 27% to USD 1,970 per ton. Similarly, the export price of Arabica coffee rose by 27% to USD 4,402 per ton over the previous year.
According to experts, the US coffee market will expand at an average rate of 4.8% between 2020 and 2025. Long working hours and an ever-busier lifestyle are the major drivers propelling the market’s expansion, which has led to a rise in the popularity of coffee chains in the country.
The Import-Export Department emphasized that there was a significant opportunity, and advised exporters to be aware of US production standards, such as Rainforest Alliance/UTZ Certified, Fair Trade USDA, Carbon Neutral, Bird Friendly, and Organic and Direct Trade.
The two coffee exchanges had weak trading sessions at the beginning of the week. Arabica prices lost 3.26% and robusta fell 0.92%.
- Rotating with strong activity when US stock prices surged before midterm elections (November 8).
- Brazil’s weather is very favorable, rain and sun are divided equally to help flowers bloom and set good fruit.
- The USD/DXY value index fluctuates strongly in the direction of increasing during the day, decreasing deeply at night (VN time).
- Robusta prices fell less thanks to the trading position of hedge funds that increased their short selling volume last week. The market is waiting for a buyback on this floor to balance the position.
(Sources: VietnamPlus, Vietnamnet)