Kinhtedothi – The export market gradually recovered, leading to an increase in orders while the supply was still in short supply. These are beneficial factors that help Vietnam’s coffee and cashew nuts set records in export volume and price.
2 key products made a spectacular breakthrough
Information from the Import-Export Department (Ministry of Industry and Trade), in August 2023, Vietnam’s average coffee export price recorded a record high of 3,054 USD/ton, up 8% compared to July 2023 and increasing. 29.7% compared to August 2022. In the first 8 months of 2023, our country’s average coffee export price reached 2,463 USD/ton, up 8.9% over the same period last year.
Coffee prices are currently at their highest level in the past 30 years. However, coffee exports through August and September were out of stock. This leads to a decrease in coffee exports from August to October compared to the same period last year.
The EU is the largest market for Vietnamese coffee and has increased coffee imports from Vietnam in the first 6 months of 2023, up 21% in volume and 18.1% in value over the same period last year, reaching nearly 390,000 tons, worth 854.2 million EUR (equivalent to 914.1 million USD). Vietnam’s coffee market share in the EU’s total imports from foreign markets increased from 20.9% in the first 6 months of 2022 to 27.5% in the first 6 months of 2023.
Similarly for cashew nuts, in August 2023, Vietnam’s cashew nut exports continued to record a new record high of over 60,500 tons, worth 333.8 million USD, an increase of 10.8% in volume and increased by 9.7% in value compared to July 2023, increased by 29.2% in volume and 21.8% in value compared to August 2022.
In the first 8 months of 2023, Vietnam’s cashew exports reached nearly 395.6 thousand tons, worth 2.28 billion USD, up 15.5% in volume and 11.3% in value compared to the same period last year. period last year. In the past 8 months, Vietnam’s average cashew export price reached 5,760 USD/ton, down 3.6% over the same period in 2022, but still at a high level.
Notably, cashew exports to all major markets increased. In particular, cashew nut exports to China, Germany, England, the United Arab Emirates, and Saudi Arabia increased compared to the same period last year.
Explaining the cause of the price increase of the above agricultural products, Director of the Import-Export Department (Ministry of Industry and Trade) Tran Duy Dong said that since the beginning of the third quarter of 2023, the export of agricultural products has changed. Good. Large markets have many positive signs as demand increases, leading to a rebound in export orders.
Supply decreases, prices continue to rise
The Import-Export Department (Ministry of Industry and Trade) predicts that Robusta coffee prices will continue to recover in the short term because the market is still concerned about supply shortages. The market is concerned about the El Nino weather phenomenon forecast to appear later this year and will cause partial drought in the main coffee producing countries around the Pacific rim, while coffee volumes are evidenced. Reception on both exchanges remains at very low levels.
The Import-Export Department (Ministry of Industry and Trade) also forecasts that in the fourth quarter of 2023, Vietnam’s cashew exports will increase thanks to cyclical factors and increased import demand from the US and EU. Currently, domestic factories have signed many new orders and demand for this product has begun to increase again. Production activities are vibrant, many units have to increase processing capacity to keep up with signed fourth quarter orders. Improving quality, diversifying products and making good use of opportunities from the market will help Vietnam’s cashew industry continue to grow and breakthrough.
Deputy Minister of Agriculture and Rural Development Phung Duc Tien assessed that this year, the cashew industry sets an export target of 3.1 billion USD. Besides favorable factors, this industry still faces many challenges. Notably, factories must depend on 50 – 60% of imported raw materials. To improve this problem, the key step is to promote renovation and improve the yield and quality of Vietnamese cashew trees.
For coffee, the Ministry of Agriculture and Rural Development and the Central Highlands provinces have currently implemented many programs to support and encourage farmers to switch to high-quality coffee production models, especially specialty coffee. Accordingly, many cooperatives and farmers have earned high profits, while increasing the brand value of coffee in the Central Highlands.
“To achieve the export turnover target of 5 – 6 billion USD by 2030, the coffee industry strategy is to promote processed coffee products (roasted and ground coffee, instant coffee…) rather than focusing on quantity. quantity of green coffee, because past lessons show that if the area is increased further, the oversupply situation and falling prices will return” – Deputy Minister Phung Duc Tien emphasized.
According to calculations by the Ministry of Agriculture and Rural Development, the amount of coffee exported in 2023 will reach about 1.72 million tons, earning 4.2 billion USD. To ensure coffee prices remain high, the Ministry of Agriculture and Rural Development has approved the “Project for Developing Vietnamese Specialty Coffee for the period 2021-2030” with the goal of reaching 2% of specialty coffee area by 2025. % of total area, meaning output is at 5,000 tons and increases to 3% and 11,000 tons in 2030, respectively.