Although Vietnam is the world’s second biggest coffee exporter, around 90% of its coffee exports are in the raw form, resulting in low export revenue as well as brand recognition.
    |
 |
|
A coffee shop in Hanoi (Photo for illustration: Bloomberg) |
Even when the country tops the world in term of coffee export volume, it only stands at the 10th place in term of value.
To increase the value of coffee exports, building a coffee production chain is one of directions to develop the industry sustainably.
The close connectivity from farmers to processing companies will create a coffee production line that ensures high product quality, environmental protection and sustainable development.
Export revenue of coffee is expected to hit a new record this year, exceeding the four billion USD achieved last year, the Vietnam Coffee Cocoa Association (VICOFA) said.
However, both farmers and exporters said they do not benefit from rising prices of coffee due to rising inflation that has pushed production cost up.
In the first five months of this year, Vietnam's coffee exports were estimated at 882,000 tonnes, worth more than two billion USD.
The country’s average export price of coffee is at 2,295 USD per tonne, up 2.4% over the same period last year.
From now until the end of the year, coffee exports will still have good prospects when demand increases while supply is not expected to improve. It is forecast that coffee output this year will decrease by 10%-15%/year due to unfavourable weather.
Source: VNA