New situation of epidemic situation in Vietnam production of Robota in Vietnam has declined, and coffee prices have risen by 2022.

Coffee prices remain high until 2022

Vietnam's blockade due to the severity of the COVID-19 epidemic could keep coffee prices relatively high until 2022, CNBC reported on Sept. 15.

On Sept. 13, Vietnamese authorities announced that Vietnam's commercial center and Ho Chi Minh City, the epicenter of the new COVID-19 epidemic, had extended the blockade for two weeks.

As the world's second largest coffee exporter and an important part of the global manufacturing supply chain, Vietnam, a Southeast Asian country, has had an impact on overseas exports of coffee and other commodities. The global supply of goods ranging from coffee to clothing and semiconductors has been hit to varying degrees.

Vietnam's coffee exports fell 8.7% from July to 111,697 tons in August, Reuters said, citing customs data. From January to August this year, Vietnam exported 1.1 million tons of coffee, down 6.4 percent from the same period last year, but coffee export revenue increased 2 percent to about 2 billion US dollars, the news agency said.

The decline in Vietnamese coffee exports, coupled with a decline in Brazilian coffee production, has pushed up global coffee prices. Benchmark Arabica coffee futures jumped about 45.8 per cent this year, while Robusta coffee futures surged 52.2 per cent, according to Refinitive.

Fitch Solutions (Fitch Solutions) said that restrictions on the COVID-19 outbreak could be gradually lifted soon, and the interruption in Vietnamese coffee exports was likely to be short-lived. Fitch predicts that global coffee supply may begin to rebound in 2022 / 2023, with the average annual price of Arabica coffee falling to $1.20 per pound in 2023.

Coffee harvest declined in 2021-22

According to a report by the STiR on September 15, coffee production in the Central Highlands (Central Highlands), a coffee-growing region in southern Vietnam, has declined due to droughts in June and July this year.

Vietnam's 2021-22 coffee harvest will officially begin in late October, and production is expected to reach 29 million bags of 60 kg coffee beans. This is no change compared with the current volume of packaging exports in 2020-21 (October / September), but lower than the previous forecast for the new production season, that is, close to 31 million bags.

Luong Van Tu, president of the Vietnam Coffee and Cocoa Association (Vietnam Coffee and Cocoa Association), said in an interview on Aug. 30 that Vietnam's coffee harvest could be reduced by 10% Mel 15% from November next year, as heavy rains caused ripe coffee cherries to fall and rot on the soil.

However, when Rain Water is deficient, or even extremely dry, the growth of coffee beans in coffee cherries stops growing, and the most common is the size of beans getting smaller.

During June and July of the rainy season, drought occurred in some key areas of the south. Due to the lack of stable and abundant rainfall, farmers were unable to fertilize the coffee plants for a second round. The lack of rainfall and limited fertilizer limit the growth of beans in coffee cherries and affect yield.

By August, there was rain in all coffee producing areas, and 200 millimeters of rainfall was recorded in most of the major producing areas, but lower than the average of the past four years.

Hanoi, Vietnam relaxes epidemic control measures on the Mid-Autumn Festival

Hanoi, the capital of Vietnam, has relaxed its control of the epidemic since the 21st, lifting social distance measures implemented since July and allowing non-essential service industries such as haircuts and catering to resume business, Xinhua reported on September 21.

There were 11692 new confirmed cases of COVID-19 in Vietnam on the same day, including 11687 locally confirmed cases, the Ministry of Health of Vietnam reported on the 21st. There were 240 new deaths. A total of 707436 cases were confirmed and 17545 died in Vietnam.

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