Vietnam hit record coffee output in 2015-16
Vietnam’s coffee industry had a record setting year for 2015-16 (Oct/Sep) as a bumper crop led to exports of 27 million 60-kg bags – the highest volume ever recorded, reports the Vietnam Coffee and Cocoa Association (Vicofa).
Since the beginning of the new coffee year, Vietnam’s coffee export turnover reached 1.14 billion USD. Per Vicofa, 2016-17 output is expected to drop by three million bags to 24.0 million after the effects of inclement weather in 2016 spilled over and weakened yields in the current year crop.
For the month of January, Vietnam exporters shipped an estimated 127,000 metric tons (2.1 million bags) of coffee abroad valued at USD $287 million in revenue, down 3.6% in value and 26.5% in volume year-on-year.
Meanwhile, prices of Vietnamese coffee dropped in February. Coffee prices in Dak Lak, largest coffee growing province in Vietnam, decreased to USD $1.96-$1.98 (VND44,500-VND45,000) per kilogram during the first week in February.
Vietnamese Robusta grade two, 5% black and broken was quoted at discounts of US$65-US$70 per metric ton to the May contract, nearly unchanged from USD $60-$70 the last week in January.
According to the US Department of Agriculture’s December 2016 report, world coffee production for 2016-17 is forecast 3.7 million bags higher than the previous year, to 156.6 million bags (60 kg) as record Arabica output in Brazil more than offsets lower Robusta production in Brazil, Vietnam and Indonesia. Global consumption is forecast at a record 153.3 million bags, drawing ending inventories to a five-year low, particularly in producing countries.
Source: VOV (Voice of Vietnam)/Vicofa/USDA