Due to the shortage of containers, Vietnamese coffee exports fell by 17.6% in January compared with the same period last year.

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Vietnam, the world's largest producer of Robusta beans, exported 17.6 percent of its coffee in January from a year earlier to 120,000 tons, equivalent to 2 million bags (60 kg bags), the General Statistics Office (GSO) said on Jan. 29. Vietnam's Robusta coffee export revenue for the month is estimated to have fallen 12.6 percent from the same period to US$217 million.

Vietnamese coffee traders said on Jan. 28 that domestic coffee prices remained unchanged this week compared with the previous week, with coffee grown in Vietnam's central highlands selling at 31,500 to 31,700 dong (US$1.37) per kilogram, down from 31,200 to 32,000 dong a week ago. The reason is that the Vietnamese coffee harvest for 2020-21, which started in October, has ended.

Vietnam's local coffee farmers previously sold about 40 percent of Robusta beans, but sales are now limited by unattractive prices. Farmers complain that prices are too low for large-scale release. They just sell enough money to meet their daily needs. Meanwhile, traders said: "when farmers are facing pressure to cash in before the lunar new year holiday, even if the price does not meet their expectations, they will sell more different grades of robusta coffee beans."

Although coffee traders were able to buy more beans,"the shortage of containers made it difficult for us to ship coffee beans for export," says one trader. Over the past two months, freight rates for most shipping companies have increased 2-10 times, depending on the shipping industry.

For example, shipping a 20-foot container to the UK typically costs $1,420, rising to $5,420 in November and $7,200 in December. Before October, container rentals from Los Angeles to Vietnam ranged from $700 to $1,000, but by November the figure rose to $5000. If COVID-19 remains unchecked, the shortage of ships and containers will continue into March and beyond.

According to official figures, Vietnam exported 26,666,667 bags of coffee in 2020, a decrease of 5.6% compared to 2019. Export revenue was US $2.74 billion, also down 4.2% year-on-year.

With the harvest season ending, Vietnamese coffee traders expect Vietnam coffee production to drop by 16 -17% in 2020-21 to reach about 25 million bags of 60 kg. Yields have fallen because of pre-harvest drought and persistent low coffee prices that discourage farmers from investing in fertilizing and watering their farms.

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