Ongoing Decline in Vietnam's Coffee Prices

• Vietnam’s coffee prices have experienced a continued decline, with the Central Highlands, the nation's largest coffee-producing region, recording an average price of $4,75 per kilogram.
• At the beginning of the week, prices dropped by approximately $0,032 per kilogram from the previous day, reflecting a steady downward trend.
• The highest prices were seen in Dak Nong and Dak Lak provinces, where coffee fetched $4,79 per kilogram.
• Other key regions, including Gia Lai and Lam Dong, also reported price decreases, with Gia Lai at $4,74 per kilogram and Lam Dong at $4,72 per kilogram.

Weekly Fluctuations Highlight Consistent Downward Pressure

Last week, coffee prices in Vietnam ranged between $4,74 and $4,77 per kilogram, continuing a decline that has now extended into the current week. This decline mirrors global market conditions, where robusta coffee prices on the ICE Futures Europe London exchange fell sharply, with September 2024 deliveries down by $0,11 per kilogram, trading at $4,33 per kilogram. Similarly, Arabica coffee prices on the ICE Futures US New York exchange have also seen a downward trend.

Global Market Factors Drive Coffee Price Declines

Several global factors are contributing to the ongoing fluctuations in Vietnam’s coffee prices. The European Union’s stricter regulations on the quality of imported goods, including coffee, are creating additional pressure on prices. Additionally, adverse weather conditions in Brazil and the ongoing coffee harvest are influencing global market prices. Leading to continued downward trends in both robusta and Arabica coffee prices.

Vietnam's Coffee Exports Grow Despite Declining Volumes

Vietnam remains the world’s largest exporter of robusta coffee. Yet it has imported coffee over the past seven months to meet domestic demand and support export processing. In the first seven months of 2024, Vietnam exported 964,000 tonnes of coffee, a decrease of nearly 14% compared to the same period last year. However, the country's coffee export turnover has increased by 31%, reaching $3,54 billion. Thanks to high coffee prices earlier in the year.

Vietnam’s coffee market is currently navigating a period of declining prices, driven by global market fluctuations and local factors. Despite a drop in export volumes, the country has seen significant growth in export turnover. Highlighting the complex dynamics at play in the global coffee industry.