EU countries increased their buying of Vietnamese coffee.
In the first months of 2020, EU countries tend to increase their purchase of Vietnamese coffee, including Poland (up 53.7%, reaching 23.5 million USD), Belgium (up 20.1%), reaching 74.8 million USD).
According to the Department of Agro-Processing and Market Development (Ministry of Agriculture and Rural Development). Coffee exports in July 2020 have estimated at 120 thousand tons.
In the first 6 months of the year, Germany, the United States, and Italy were the three largest coffee consuming markets of Vietnam. The EU is the second-largest market for Vietnamese coffee (accounting for over 42% of Vietnamese coffee exports). Although the Corona Virus caused great damage to the consumer economy, bread, milk, and coffee still had high consumption in the EU. With the EVFTA platform, the coffee industry can add value to this market soon.
However, coffee export value decreased in the UK and China markets. The average export coffee price in the first 6 months of 2020 decreased by 0.9% over the same period in 2019. It is forecasted that world coffee prices will have many positive signals in the last months of this year because investment capital in two coffee futures has increased sharply.
The domestic coffee market fluctuates with the trend of the world market. Compared to June 2020, the price of Robusta coffee in the Central Highlands provinces increased from 1,400 to 1,600 VND / kg to 32,300 – 32,700 VND / kg.
Department of Agricultural Product Processing and Market Development assessed that in the first months of 2020, the coffee market tends to decrease in price. However, compared to the end of 2019, domestic coffee prices increased by 500-700 VND / kg after a long series of record price reductions.
It is forecasted that soon, The limited domestic supply of coffee due to the lack of water in the Central Highlands region, the reduction of coffee bean output will push up the price of coffee in the domestic market.