Never before has Vietnam’s coffee sector been as successful. This remarkable expansion is largely driven by tariffs, climate, and global price instability. The country is taking advantage of these opportunities. Producers are reaping the benefits as nine-month cumulative exports have already eclipsed all of calendar year 2023. This astounding increase steals no glory away from Vietnam as the second-largest coffee exporter, but does contribute to ballooning prices for coffee lovers everywhere.
The drive behind Vietnam’s coffee export explosion is an example of coffee producers learning to weather the perfect storm. Increasing global prices have created unprecedented opportunities for Vietnamese exporters. What’s more, they’re being paid massively more than they were in years past. Tariffs that have been enacted in many of our top trading partners have helped, giving our domestic producers a leg up. The confluence of these factors has led to a boom year for the country’s coffee industry, with record production and exports.
A recent scene in Pleiku, Gia Lai province, captured a worker pouring coffee beans into a moisture tester at a facility dedicated to ensuring quality standards. This extensive procedure is the key to producing the distinct flavor that now has become a household name in Vietnamese coffee. The photo highlights the commitment and determination of local farmers, crews and workers as they continue to propel the industry’s success even in the wake of adverse conditions.
Vietnam’s coffee exports in the first nine months illustrate the robustness of this production year. Perhaps just as impactful, this data underscores a stunning change in the market environment. Now, a new wave of global price volatility is going to hit the coffee trade hard. Vietnamese growers are taking advantage of the situation to cash in on these price swings. These conditions have been exacerbated by weather volatility, but it hasn’t stopped the ingenuity of Vietnam’s coffee exporters.
Most of these hurdles are dissipating and consumers are beginning to feel the impacts of increasing cost. Internationally, coffee prices are increasing on all fronts. The Vietnamese supply cannot meet the demand for high-quality coffee Vietnam produces. Coffee drinkers across the globe are feeling the pinch as a consequence, with retail prices skyrocketing. As the industry becomes more successful, consumers are going to have a harder time knowing where they should buy their coffee from.