Coffee prices continue to rise

(VOV) - Vietnamese coffee prices have enjoyed a constant rise since last year and are likely to continue upwards in the future, according to the Ministry of Industry and Trade (MoIT).

The MoIT predicts that prices of coffee on the global market will surge by 2-3 percent annually, especially in the Southeast Asian region, thanks to increasing demand estimated to hit 172.2 million 60-kg bags by 2021.  In 2012, the world’s total output stands at 131.6 million bags, which is below the collective demand of 137.1 million bags.

coffee prices continue to rise hinh 0

The total yield of Vietnamese coffee in the 2011-2012 crop remained high and coffee exports capitalised on advantageous prices. Between January and September 2012, the average offered price for Vietnamese coffee was US$2,126 per tonne.

Vietnam exported 1.41 million tonnes of coffee during the past 10 months , earning US$3.02 billion and representing an increase of 37.7 percent in volume and 32.7 percent in value compared to the same period last year.

Coffee prices are forecast to rise thanks to the limited 3 percent reserve of the previous crop. Accessing this stored volume is difficult as coffee traders are expected to wait for higher prices during the remainder of the year.

The two largest importers of Vietnamese coffee are the US and Germany, accounting for 12.11 percent and 12.09 percent of total market share respectively.

Indonesia is emerging as an export market with great potential for Vietnamese coffee, as indicated by a sharp recent increase in its import volume and value.