In June, Vietnam exported approximately 150,000 tonnes of coffee valued at 552.6 million USD, leading to total exports for the first half of the year reaching 1.1 million tonnes worth 4.78 billion USD.
Export volume increased by 9.7 percent compared to a year ago, whereas export value decreased by 14.4 percent, highlighting the growing difficulties for the sector.
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The Ministry of Agriculture and Environment reports that the average export price during January to June decreased by 22 percent compared to the previous year, reaching approximately 4,435 USD per tonne, indicating that the advantage of high coffee prices in 2024-2025 is slowly closing.
Vietnam's primary export markets all showed diminished profits. Germany, Italy, and the US continued to be the top three coffee importers for the country, responsible for 14.1 percent, 7.9 percent, and 6.9 percent of total exports, respectively. Nevertheless, the export value to these markets in the initial five months dropped by 21.7 percent, 9.6 percent, and 2.2 percent.
China stood out as a notable exception, experiencing a 70.7 percent increase in export value, representing the highest growth among the 15 biggest importers of Vietnamese coffee, underscoring the untapped opportunities despite the decline in conventional markets. In the domestic market, coffee prices have risen beyond 90,000 VND per kilogram after several weeks of variation, prompting some farmers to make sales. Nonetheless, trading stays cautious due to the limited remaining stocks.
The Vietnam Coffee Cocoa Association (Vicofa) stated that the worldwide coffee market is entering a tougher stage as supply continues to exceed demand.
Brazil is largely fueling the expansion, whereas global consumption has seen only slight growth in recent years.
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It indicated that the increased supply is likely to exert downward pressure on prices in the upcoming months, especially in the Robusta sector, Vietnam's primary export commodity. The association cautioned that reaching this year's export revenue goal will be challenging as export prices keep declining and shipments in the latter half of the year are usually lower than in the earlier half.
Chairman of the Board of Directors and General Director of Vinh Hiep Co., Ltd, Thai Nhu Hiep, noted that increased coffee prices in recent years have greatly enhanced farmers' livelihoods; however, this financial independence has made it more challenging to motivate them to engage in production linkages, adopt traceability systems, and adhere to sustainable farming practices.
In this context, Vicofa emphasized the importance of the coffee sector shifting its emphasis from increasing production to enhancing added value by raising exports of high-quality coffee beans with sustainability certifications and increasing shipments of roasted, instant, and blended coffee products.
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Approximately 30 percent of Vietnam's coffee cultivation area is currently certified in accordance with sustainable production standards, laying a strong groundwork for fulfilling the rising demands of export markets.
Vicofa additionally urged for enhanced trade promotion in potential markets like China, Russia, South Korea, Algeria, and Nordic nations, while strengthening connections with significant retail chains in Asia and Europe to bolster processed coffee exports.