Coffee prices continue to slide

The export price of coffee is likely to continue its downward trend for the foreseeable future due to an abundant supply and low demand, according to the latest forecast from the Import-Export Department under the Ministry of Industry and Trade.

Vietnam- the world’s second largest producer of coffee- is about to begin  the 2018-2019 coffee crop.  The output of four Central Highland provinces, which produce more than 90% of the country’s total yield, is projected to increase by about 4% against the previous crop, according to a Bloomberg survey.

In addition, the escalating trade tension between the US and China and the devaluation of currency exchange rates in the major coffee producing countries also has a negative impact on global coffee prices.

The Import-Export Department warned businesses and farmers of their need to closely follow market fluctuations and global prices to create proper reserve plans, especially as Vietnam’s new harvest season approaches.

The General Department of Vietnam Customs reported that Vietnam exported 153,300 tons of coffee in August valued at US$282.16 million, bringing the total export volume over the eight months to 1.33 million tons worth US$2.54 billion, up 16.6% in volume and down 1.5% in value.

Particularly, August's strong growth was seen in coffee exports to Germany, expanding 147.3% in volume to 20,800 tons and 86.3% in value to US$36 million.