Manufacturing Regular, Moderated by Local weather ChangeDaily Espresso Information by Roast Journal

These and different points are outlined within the new USDA Overseas Agriculture Service annual report on the Vietnam espresso sector.

[Note: This is part of a series of stories that will explore USDA FAS annual coffee reports. The information agency typically delivers more than a dozen country-level reports on the coffee sector, each coming from different authors and field offices, with predictions for the 2024/25 market year.]

Manufacturing Estimates

• Vietnam’s espresso manufacturing for market 12 months 2024/25 is forecast to stay secure, on the equal of 29 million 60-kilo luggage, with increased espresso costs serving to to offset manufacturing decline developments, in line with the evaluation.
• Robusta manufacturing is predicted to achieve 27.85 million luggage, whereas arabica manufacturing is forecast at 1.15 million luggage.
• Elevated investments in labor and inputs led to an estimated 6% rise in estimated manufacturing for the 2023/24 espresso manufacturing 12 months, leading to 29.1 million luggage, in line with the report.

Crop Space

• Vietnam’s espresso space is predicted to stay secure at round 600,000 hectares, though the authors famous that farmers within the Central Highlands are diversifying to higher-earning crops like durian and keenness fruit.
• Excessive temperatures and droughts, exacerbated by local weather change, have negatively impacted espresso manufacturing in 2023/24, with low forest cowl and falling groundwater ranges posing long-term challenges.
• Irrigated and shaded espresso fields have fared finest by way of the adversarial climate circumstances, though the evaluation warns that sustaining present manufacturing ranges could also be tough if such circumstances persist.

Coverage and Land Use

• The provincial Division of Agriculture and Rural Growth (DARD) and Western Highland Agriculture and Forest Science Institute (WASI) have developed methods for sustainable espresso manufacturing, together with changing previous timber with new varieties, selling intercropping, adopting water-saving irrigation techniques and serving to farmers certify their farms for increased costs, in line with the report.
• The central authorities’s espresso re-cultivation program has replanted 130,000 hectares of previous espresso farms with new crops, growing yields to 2.8-3.0 tons/hectare, and plans to replant a further 100,000 hectares by 2025, in line with the report.
• In keeping with a report by the Worldwide Union for Conservation of Nature (IUCN), the water demand for espresso mono-culture manufacturing within the highland area of Vietnam is about 1.12 billion cubic meters a 12 months.

Exports

• Espresso exports from Vietnam reached 15.94 million luggage within the first half of 2023/24, a 7% lower from the earlier 12 months, with important drops in exports to Belgium, the USA and Germany, however will increase to Spain, Japan and Algeria, in line with customs stories.
• 2023/24 export forecasts have been raised to 26.85 million luggage on account of sturdy commerce statistics and excessive export costs, although excessive home costs and inventory retention by farmers pose challenges for future exports.
• The EU’s upcoming deforestation-free regulation is a priority for Vietnam’s espresso farmers, particularly small-scale producers, who hope current certification packages like 4C will assist meet the brand new necessities.

Consumption

• Vietnam’s economic system grew 5.6 p.c in Q1 2024, however consumption solely elevated by 4.9 p.c, attributed to slowed job and revenue development.
• Espresso consumption is estimated to achieve 3.6 million luggage in MY 2024/25, with MY 2023/24 consumption raised to three.45 million luggage on account of sturdy demand.
• The authors famous that Vietnam maintains a sturdy coffee-drinking tradition, with a selected emphasis on budget-friendly drinks plus a rising high-end arabica market.

Feedback? Questions? Information to share? Contact DCN’s editors right here. 

Associated Posts