Passed the $4 billion mark
According to the General Department of Customs, coffee exports reached 197,000 tons worth US$425 million in December 2022. With this result, coffee exports will reach 1.78 million tons worth US$4.06 billion in 2022, up 13.8% in volume and 32% in value. This makes 2022 the first year coffee exports surpass $4 billion.
Coffee harvest in Lam Dong. Photo: son Trang.
The fact that Vietnam’s coffee exports exceeded the 4 billion dollar mark for the first time is mainly due to the high coffee prices worldwide in 2022. The market continues to grow, there are markets that are growing very strongly.
According to the US International Trade Commission, coffee imports to the US reached US$8.07 billion in the 10 months of 2022, up 44.8% from the same period in 2021. During this period, imports from Vietnam reached US$8.07 billion $285 million, up 32.2% over the same period in 2021.
According to information from the International Trade Center (ITC), Germany’s coffee imports also amounted to 4.72 billion in the 10 months of 2022, up 58.2%; France imported $2.7 billion, up 4.7% (imports from Vietnam were $57 million, up 78.7%); Canada imported $1.6 billion, up 37.7% (imports from Vietnam were $28 million, up 91%)…
Meanwhile, the global coffee supply is not enough to meet demand. According to the International Coffee Organization (ICO), total world coffee production in crop year 2021/2022 is about 167.2 million bags (60 kg/bag), while demand is about 170.83 million bags. The difference in the balance between supply and demand and other factors significantly increased the world coffee price as well as the export price of Vietnamese coffee in 2022, up 11.6% from 2021.
Imprint of processed coffee
The increase in production and export of processed coffee products has also contributed significantly to Vietnam’s coffee exports surpassing $4 billion in 2022% from the same period in 2021.
In order to meet the increasing global demand for processed coffee and increase the value of coffee exports, many major companies in the Vietnamese coffee industry are promoting the production and export of processed coffee.
The export of processed coffee has made great strides in recent years.
Mr. Ly Trung Kien, head of Nestlé Vietnam’s national logistics department, said the company is investing more in modern technology and expanding production of highly processed and high-value products.
In 2022, Nestlé Vietnam will begin producing and exporting the first batches of super-premium instant coffee products using freeze-drying technology to demanding markets such as Japan and the United States. Previously, this product was only manufactured on a small scale at the Nestlé Group’s Research and Development (R&D) center in the United States. Nestlé’s Tri An (Dong Nai) factory is the first factory in the entire Nestlé group to manufacture this line of products on a commercial scale.
Nestlé Vietnam is also continuously expanding the production of premium Starbucks branded coffee products for export to Asian markets such as Japan, Korea, Taiwan, Singapore and China.
The expansion of production of high-quality coffee products is part of an additional US$132 million investment commitment announced by Nestlé Vietnam in the final months of 2021, helping to bring high-volume “Made in Vietnam” coffee products to market Quality in the region and in the world. This investment has brought the total value of Nestlé Vietnam’s foreign investments to nearly US$730 million.
Deep processing is an inevitable direction to enhance the value of Vietnamese coffee.
“Vietnam’s goal of reaching US$6 billion in coffee exports will not only be achieved by increasing the number of coffee farms, but must be achieved by adding value to coffee. Therefore, Nestlé is focusing on moving in the direction of regenerative agriculture development by collaborating with the government, research institutes, organizations and farmers to explore how to improve the quality of Robusta coffee in Vietnam, the production of coffee beans. Robusta coffee is more productive and profitable than regular Robusta beans. What needs to be done is to add value to Vietnamese coffee beans by increasing processing percentage instead of just exporting coffee. green, which has limited value”.
(Mr. David Rennie, Executive Vice President and Head of Coffee Brands, Nestlé Group).