Opportunities for Vietnamese Coffee

Opportunities for Vietnamese Coffee
Date Submitted: 02/01/2025 02:47 PM

Opportunities for Vietnamese Coffee

Coffee Exports Surpass $5 Billion

In 2025, opportunities for Vietnamese coffee remain significant as Brazil, the world's leading coffee producer, is expected to reduce its output.

Vietnam's agricultural, forestry, and fishery exports this year are estimated to reach $62.5 billion, with coffee alone contributing nearly $5.5 billion from a total volume of over 1.3 million tons.

The increase in export coffee prices is a key factor behind this milestone. The Vietnamese coffee industry has achieved a significant success, surpassing $5 billion in export revenue for both the crop year and calendar year. Coffee has become the third agricultural product, after fruits and rice, to reach over $5 billion in export turnover. It is also the agricultural product with the highest price increase among Vietnam's key export commodities.

Farmers Thrilled as Coffee Prices Surge

The rising export prices of coffee have also driven domestic prices to record highs, fluctuating above 120,000 VND/kg and occasionally hitting 130,000 VND/kg. Many families are delighted with the higher income, allowing them to look forward to a more prosperous Lunar New Year celebration.

With more than 3.4 hectares of coffee, the family of Ms. H’Yiăm M’lô in Buôn Ko Tam, Ea Tu Commune, Buon Ma Thuot City, expects to harvest nearly 10 tons of coffee beans this season.

The tripled coffee prices compared to previous years have not only helped her family overcome challenges from past unstable seasons but also improved their income, providing motivation to invest for future crops.

Ms. H’Yiăm M’lô shared: “Although this year’s coffee yield was not as high, the prices are excellent, so I am very happy. I now have the funds to rehabilitate part of the aging coffee plantation to boost our economic prospects and income.”

Đắk Lắk Province, home to the largest coffee-growing area in the Central Highlands with over 210,000 hectares, produces an average of over 500,000 tons per year. However, the 2024–2025 crop year is projected to see a 5–10% decrease in output due to droughts affecting thousands of hectares in the 2024 dry season. Despite this, the current high prices have kept coffee growers optimistic as their income has increased significantly.

Agricultural experts predict that if coffee prices stabilize above 120,000 VND/kg and maintain this level in the coming years, it will not only improve the lives of ethnic minority farmers but also encourage long-term investment in coffee cultivation.

Prospects for Vietnamese Coffee

This year, coffee growers have enjoyed both favorable yields and high prices. In 2025, opportunities for Vietnamese coffee remain promising, as Brazil is expected to reduce its coffee production.

According to forecasts by the U.S. Department of Agriculture, drought and high temperatures during the coffee fruit development phase in Brazil will result in lower-than-expected yields. Brazil's coffee exports in the coming year are expected to decrease by 2.6 million bags compared to 2024.

Meanwhile, in Vietnam, the world's second-largest coffee producer, coffee exports are projected to increase by 1.8 million bags in 2025 due to improved supply.

With rising export prices and an advantage in supply, Vietnamese coffee stands poised to elevate its position in the global market.

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