Vietnam coffee exports grew in 2016 despite drought
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Vietnam’s coffee exports have rebounded, notching up double-digit growth this year after being hit by the most-severe drought in almost a century.
Coffee exports grew, on-year, by 33.6 percent in terms of volume, reaching nearly 1.8 million tons.
The Ministry of Agriculture and Rural Development said Vietnam’s coffee industry regained its momentum after seeing exports decline by more than 20 percent on-year in 2015.
Germany and the U.S. remained the two largest buyers of Vietnamese beans and, this year, sales to the two markets grew by 42.4 percent and 49 percent, respectively.
Exports of coffee also saw impressive increases in emerging markets like the Philippines (83 percent), Algeria (68 percent) and China (50 percent).
Analysts fear ongoing El Nino conditions could result in a 20 percent decline in coffee production during the coming year.
Roughly a fifth of Vietnam’s total plantations had been damaged by water shortages, according to the Association of Coffee and Cacao (VICOFA).
Flooding struck the Central Highlands’ coffee belt in November, making harvesting and drying rather difficult.
VICOFA chairman Luong Van Tu, however, says Vietnamese enterprises should shift their focus to processing coffee rather than increasingly the amount of raw materials shipped abroad.
He said new free trade agreements will slash tariffs on coffee sales to the E.U. and South Korea from 15 percent to under five in the coming year.
Questions & Answers
Q.What were the total coffee export figures for Vietnam in 2016?
What were the total coffee export figures for Vietnam in 2016?
Vietnam's coffee exports reached nearly 1.8 million tons in 2016. This represented a 33.6 percent growth in volume compared to the previous year, showing a strong rebound.
Q.Which countries were the primary buyers of Vietnamese coffee this year, and how much did their purchases increase?
Which countries were the primary buyers of Vietnamese coffee this year, and how much did their purchases increase?
Germany and the U.S. Remained the largest buyers of Vietnamese beans. Sales to Germany grew by 42.4 percent, while sales to the U.S. Increased by 49 percent.
Q.What long-term strategy has VICOFA's chairman suggested for Vietnam's coffee industry?
What long-term strategy has VICOFA's chairman suggested for Vietnam's coffee industry?
VICOFA chairman Luong Van Tu suggests Vietnamese enterprises should focus more on processing coffee. This is instead of increasing the amount of raw materials shipped abroad.
Q.What impact are new free trade agreements expected to have on coffee sales to the E.U. And South Korea?
What impact are new free trade agreements expected to have on coffee sales to the E.U. And South Korea?
New free trade agreements are expected to significantly reduce tariffs on coffee sales to the E.U. And South Korea. These tariffs will fall from 15 percent to under five percent in the coming year.
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