The COVID-19 epidemic is causing unprecedented turmoil in coffee farms, coffee processing plants and also fundamentally changing coffee-consumption needs. Watch the video below to learn more about how this pandemic has affected the global coffee market and Vietnam coffee market in particular.
Note: Turning on the CC for English subtitle.
Source: VTV.vn; Translated by Viego Research Team
In the global raw material market, coffee bean prices have risen sharply over the past several weeks. The average price of coffee in March traded on the London market increased by 6.9% compared to the previous month. Merchants are increasing their stockpiling of coffee beans.
Die Presse newspaper in Austria is concerned about the worrying situation in the second-largest coffee exporting country in the world, Vietnam. This newspaper wrote: “Robusta coffee traders are investigating how social distancing restrictions affect coffee production in Vietnam. According to the official announcement, the preventive measures only last for 2 weeks, but the market is afraid that exports of Robusta coffee beans from Vietnam will be disturbed for many months.
In the New York futures market, Arabica coffee prices also increased by 13%, as the situation in countries exporting Arabica coffee is no different. The newspaper El Colombiano wrote: “The coffee harvest season lasts from March to June in Colombia, with an output of about 6.5 million bags of coffee requiring 135,000 workers”. Due to the travel restriction, this amount of workers might not be sufficient. Furthermore, if there are enough workers, then arranging accommodation for them is a matter when everyone has to be 2 meter away according to the social distancing restriction. The Lapatria newspaper wrote that some farm owners were trying to have neighbors and friends pick coffee cherries. Obviously, this is just a temporary solution.
The coffee market is also changing strongly and is not necessarily unfavorable. The French Newspaper L’Echo wrote: “The COVID-19 epidemic leads to the closure of all restaurants and cafes. A decline in out-of-store coffee consumption and increasing unemployment will reduce coffee demand in 2020”. However, as many people have to stay at home, their consumption of home-brewed coffee increases. “If the uptrend in home consumption is maintained, the demand for Robusta coffee will increase. This type of coffee is sour and cheaper than Arabica, which usually accounts for a greater proportion in powdered coffee sold in supermarket. When at home, people also drink more instant coffee. And Robusta is used in instant coffee more than coffee made by coffeemakers in the coffee shops”, the paper analyzed. Robusta is a type of coffee grown in Vietnam.
In order to provide a deeper insight on Vietnam’s Coffee Market, we’ve created this series along with tips on how to select the best beans from Vietnam for your business. Jump to:
- A start-to-finish guide to coffee beans market in Vietnam
- Best types of coffee beans to source in Vietnam
- How to find wholesale coffee suppliers in Vietnam
- Essential guide to checking the quality of Vietnam’s green coffee beans
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