Vietnam's coffee exports, from the leading coffee-producing country, increased by 61% to $6.98 billion in nine months, already exceeding the figure for the entire year 2024, as prices for coffee lovers rise, Nikkei Asia reports, writes UNN.
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According to data from Vietnam's General Statistics Office, compiled by Nikkei Asia, one of the world's largest suppliers of robusta, a major coffee variety, shipped $7.8 billion worth of coffee from October to August last year. Vietnam's Ministry of Agriculture stated that this is the first time that revenue for the agricultural year (12 months to September) has exceeded $7 billion.
In the nine months to September, Vietnam's coffee exports reached $6.98 billion, up 61% from the same period in 2024, and exceeded the total for 2024, according to state broadcaster VTV. Farmers benefited from demand from their largest consumer, Europe, and rising coffee bean prices. However, the industry faces concerns about prices moving in the opposite direction, climate change, and unresolved tariff negotiations with the US.
In the US, the world's largest importer, cafe-goers are starting to pay more for their caffeine fix as they bear the costs associated with supply disruptions and previous supply shortages caused by droughts in Vietnam and Brazil, two leading coffee-producing countries. US President Donald Trump recently imposed 50% tariffs on imports from Brazil in response to the prosecution in that country of former President Jair Bolsonaro, a Trump ally.
Punitive tariffs on Brazil and other tariff pressures have led to higher prices that Vietnamese farmers can set, according to La Viet, a roasting and export company.
"They've had a high price for two years, and they're happy to be able to get more this year," CEO Tran Nhat Quang said in an interview. However, electricity and other service costs for producers have increased, while La Viet, he said, pays more for shipping. His company is taking steps such as roasting in large batches to attract customers and keep prices at previous levels, while competitors are demanding more.
Although improved weather this summer has led to increased yields and a start to falling bean prices, producers fear extreme heat, severe storms, and sudden floods, according to Vietnam Coffee United.
"For the agricultural sector, [weather] is a serious problem, especially for coffee – a key crop that brings huge economic benefits to the people of the Central Highlands," the wholesaler wrote on Facebook last month, referring to Vietnam's regional coffee production hub.
Other environmental concerns include illegal deforestation and carbon emissions. In December, the EU Deforestation Regulation (EUDR) will come into force, requiring importers to prove the ethical origin of goods, regardless of their origin. This could affect Southeast Asian countries such as Vietnam and Indonesia.
The Vietnamese coffee industry is also monitoring US tariff negotiations.