Vietnam's Coffee Supply Slows in Feb-24 as Export Purchasing Power Rises Sharply

Vietnam's coffee exports reached 238.2 thousand tons (approximately 3.9 million bags) in Jan-24, marking a 67.45% year-over-year (YoY) increase. This level of exports represents the highest in the last five years. In the same month, coffee prices in key producing provinces in the Central Highlands increased sharply, setting new records.

During the first half of Feb-24, Vietnam experienced a slowdown in supply due to the extended Lunar New Year holiday. This led to a sharp increase in export purchasing power to fulfill orders in Q1-2024. Robusta coffee prices have risen due to concerns about increased transportation costs from Asia to Europe. Additionally, inventory levels in major consumer markets worldwide are lower than average, reaching very low levels and supporting Robusta coffee's future prices.