10:50 | 19/09/2016 Trade
(VEN) - The 2015-2016 coffee crop will end in one month, expecting to set the record for export volume with 1.7 million tonnes, on rising demand, despite supply concerns caused by drought in the Central Highlands.
The General Department of Vietnam Customs’ statistics showed that coffee exports in July, 2016 reached 139,800 tonnes valued at US$269 million. During 10 months in the 2015-2016 coffee crop from October 1, 2015 to July 31, 2016, Vietnam exported 1.46 million tonnes of coffee for US$2.58 billion, up 31.5 percent in volume from a year ago.
The Vietnam Coffee and Cocoa Association estimated that coffee exports would reach 240,000 tonnes in August and September for US$420 million. As a result, the country would export 1.7 million tonnes of coffee valued at US$3.1 billion during the 2015-2016 crop, an increase of 41 percent in volume and 19.2 percent in value compared to a year ago, setting the export volume record.
According to statistics from the International Coffee Organization, Vietnam would maintain the position as the world’s second largest coffee exporter, after Brazil during this crop. If adding at least 102,000 tonnes of coffee in domestic consumption, the total volume will also set a record of 1.8 million tonnes. However the export value has seen slowdown.
According to Vietnam Coffee and Cocoa Association Deputy Chairman Nguyen Nam Hai, to ensure sustainable exports and increase the value in the next crop, businesses must comply with international standards. The most important thing is to ensure coffee quality in order to bring higher export value.
“If Vietnam’s coffee exports are mainly raw, it is very difficult to compete with products from Brazil, Colombia and Indonesia,” Institute of Policy and Strategy for Agriculture and Rural Development Director Nguyen Do Anh Tuan emphasized.
The Ministry of Agriculture and Rural Development’s Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production Deputy Director Vo Thanh Do said that the country will push up the development of instant coffee processing in the coming time. Instant coffee, which accounts for 14 percent of consumer demand in the world and is forecasted to continue growing, will present huge export potential for Vietnamese coffee sector.
The Vietnam Coffee and Cocoa Association also indicated that developing the processing industry and promoting exports of instant coffee will help increase added value.
Solutions to promote exports and increase the value, total export turnover of coffee products is expected to help Vietnam export about US$3.8-4.2 billion a year by 2020 and over US$4.5 billion a year by 2030.
Lan Anh & Quynh Nga