Coffee review

The price of coffee continues to rise, and Nestl é has invested US $100 million in a coffee factory in Vietnam to meet market demand.

Published: 2024-07-18 Author:
Last Updated: 2024/07/18, Recently, according to the Vietnam Coffee and Cocoa Association (Vicofa), the estimated price of Central Highland raw coffee is 6.85-6.95 million dong / ton, which is slightly lower than the previous price of 70 million dong / ton, but remains high. In 2023, Vietnam exported more than 16% coffee.

Recently, according to the Vietnam Coffee and Cocoa Association (Vicofa), the estimated price of Central Highland raw coffee is 6.85-6.95 million dong / ton, which is slightly lower than the previous price of 70 million dong / ton, but remains high.

In 2023, Vietnam exported more than 1.62 million tons of coffee, although it was 8.7 per cent lower than in 2022, but its turnover reached a record high of more than US $4.24 billion, an increase of 4.6 per cent over 2022. The average export price of coffee reached US $2614 per ton in 2023, an increase of 14.5 per cent over 2022. In particular, Vietnam's coffee exports exceeded 207613 tons in December 2023, a substantial increase of 74 per cent over November.

In order to meet the growing demand, Vietnam's Nestl é recently announced that it is investing US $100 million to increase the production capacity of its Tri An coffee factory in the southern province of Donai. This will help the company meet the growing demand for quality coffee from local and international consumers. The Nestl é Tri An factory currently exports coffee products from iconic brands such as Nescaf é, Nescafe Dolce Gusto and Starbucks to more than 29 countries around the world. Since 2011, Nestl é has invested more than $500 million in the facility. Nestl é currently has six factories in Vietnam, which specialize in producing coffee, cocoa malt drinks, cooking aids and water. Nestl é has been in Vietnam for nearly 30 years.

The recent rise in coffee prices is due to the increased demand for coffee, the impact of the weather and the recent Red Sea crisis. The first is the weather. A number of coffee-producing countries have been affected by El Ni ñ o earlier, and bad weather conditions have led to a decline in coffee production. Coffee production has declined as well as coffee exports, so supply has become tight and prices remain high in the face of growing demand for coffee.

Earlier, Coffee International said that global coffee demand fell by 2 to 173.1 million bags in 2022 Coffee 23 due to the knock-on effects of the COVID-19 epidemic, including rising cost of living and falling disposable income. But global coffee consumption is expected to recover and grow by 2.2% to 1% in 2023. 7.7 billion bags. Another reason for the rise in prices comes from the Red Sea crisis. As a result of Houthi attacks on merchant ships in the Red Sea, some shipping companies have to reschedule to reduce flavor, resulting in an increase in cost and transportation time.

However, there has been good news recently. At present, the United States and Britain, together with more than 20 countries, have created a maritime security mission called Operation Prosperity Guardian to enhance shipping security in the Red Sea area. And after the navigation safety problem is solved effectively in the future, the transportation price will fall back to the normal price.

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