Vietnam: USDA revises downward its estimate 2022/23 by over a million bags to 29.75 million (-6%)

The US Department of Agriculture's Foreign Agricultural Service has lowered its production estimate for Vietnam's 2022/2023 coffee crop to 29.75 million bags, a nearly 6% decrease from the previous year, due to lower yields, increased production costs, and a reduction in cultivation area. However, a recovery is expected in the 2023/24 marketing year, with an anticipated 5% increase in production to 31.3 million bags, driven by favorable weather conditions and higher yields. Exports for 2022/23 are projected to decrease by 1% to 28.8 million bags, while exports for 2023/24 are expected to rise slightly, driven by higher demand for Robusta over Arabica and lower production from other major exporters. Despite these challenges, the Vietnam Government's strategy to develop the coffee industry in a more sustainable and responsible manner, as highlighted by the significant certification of sustainable farming practices across large areas of land, offers a glimmer of hope for the future of Vietnam's coffee sector.