HANOI: The first month of 2024 has seen coffee exports showing a robust performance, surging to a trade volume of US$621mil, marking a 99.6% increase compared to the same period in 2023, according to data from the Industry and Trade Ministry.
With the current export prices standing at US$2,955 per tonne, reflecting a 35.2% uptick from the previous year, Vietnamese coffee export companies are reported to have secured substantial orders in the first quarter of 2024.
Following a 4.6% increase in coffee export volume to a record-breaking US$4.24bil in 2023, industry observers said Vietnam’s coffee exports will likely scale new heights in 2024, with projections ranging from US$4.6 to US$5bil.
To achieve this ambitious target, the Vietnamese coffee industry must intensify efforts to improve the value of coffee through a greater emphasis on deep processing, product-line repositioning, and alignment with market trends.
Deputy Agriculture and Rural Development Minister Phung Duc Tien, underscored the need for the coffee sector to invest in deep processing to increase the added value of Vietnamese coffee.
This strategic move is seen as crucial to realising the ambitious target of US$6bil in exports in the coming years.
In light of shifting preferences in major import markets such as the United States and European Union, with the two alone making up roughly half of the world’s coffee imports, Vietnamese coffee exporters must learn to adapt to the trend of processed coffee over raw Robusta.
This necessitated substantial investments in processing plants and the continuous adoption of cutting-edge processing technologies.
Meanwhile, the Vietnam Pepper Association estimated a 10.5% decrease in production to 170,000 tonnes in 2024 compared with 2023.
While a favourable outlook is still anticipated for black pepper exports this year due to reduced production and low inventory levels worldwide, the sector must not overlook the importance of deep processing in enhancing export value.
The current proportion of processed black pepper exports stands at a mere 30%, indicating the need for a significant improvement.
Despite the projected increase in pepper prices, the cultivation of pepper has faced stiff competition in the central highlands and south-east regions, primarily from other crops, notably durian.
This shift highlighted the urgency for the industry to prioritise processing, not only to increase export value but also to provide farmers with a sense of security amid fluctuating prices and market challenges.
From the perspective of a leading exporter to major markets, Phan Minh Thong, chairman of the board of directors of Phuc Sinh Corp, a Vietnamese pepper and coffee trader based in Ho Chi Minh City, highlighted the indispensable role of continued investment in deep processing for the sustainable development of Vietnam’s coffee and black pepper sectors.
The seafood export sector also recognises the importance of deep processing to enhance competitiveness, said industry insiders.
Kim Thu, a shrimp market expert at the Association of Seafood Processing and Export, stressed the need for the Vietnamese shrimp industry to improve its competitive capacity by promoting the processing of value-added products.
Currently, value-added processed shrimp products contribute a mere 40%-45% to the total shrimp export value annually. — VietNam News/ANN
