Hanoi (VNA) – Vietnam exported an estimated 150,000 tonnes of coffee worth 552.6 million USD in June, bringing total exports in the first half of the year to 1.1 million tonnes valued at 4.78 billion USD.

Export volume rose 9.7% from a year earlier, while export value fell 14.4%, underscoring mounting challenges for the industry.

According to the Ministry of Agriculture and Environment, the average export price in the January–June period fell 22% year-on-year to around 4,435 USD per tonne, signalling that the period of benefiting from elevated coffee prices in 2024-2025 is gradually coming to an end.

Vietnam's key export markets all recorded weaker earnings. Germany, Italy and the US remained the country's three largest coffee buyers, accounting for 14.1%, 7.9% and 6.9% of total exports, respectively. However, export value to these markets during the first five months declined by 21.7%, 9.6% and 2.2%.

China was a notable exception, with export value surging 70.7%, the strongest growth among the 15 largest importers of Vietnamese coffee, highlighting untapped potential despite the downturn in traditional destinations.

Domestically, coffee prices have rebounded above 90,000 VND per kilogram after weeks of fluctuations, encouraging some farmers to sell. However, trading remains cautious as remaining inventories are limited.

The Vietnam Coffee Cocoa Association (Vicofa) said the global coffee market is entering a more challenging phase as supply increasingly outpaces demand. The expansion is being driven largely by Brazil, while global consumption has grown only modestly in recent years.

It noted that the larger supply is expected to keep downward pressure on prices in the coming months, particularly in the Robusta segment, Vietnam's main export product.

The association warned that achieving this year's export revenue target will be difficult as export prices continue to fall and shipments in the second half of the year are typically lower than in the first half.

According to Chairman of the Board of Directors and General Director of Vinh Hiep Co., Ltd Thai Nhu Hiep, higher coffee prices in recent years have significantly improved farmers' livelihoods, however, greater financial independence has also made it more difficult to encourage them to participate in production linkages, implement traceability systems, and comply with sustainable farming practices.

In this context, Vicofa underscored the need for the coffee industry to shift its focus from expanding output to creating higher added value by increasing exports of high-quality coffee beans with sustainability certifications, and boosting shipments of roasted, instant and blended coffee products.

About 30% of Vietnam's coffee-growing area is now certified under sustainable production standards, providing a solid foundation for meeting increasingly stringent requirements in export markets.

Vicofa also called for stronger trade promotion in promising markets, including China, Russia, the Republic of Korea, Algeria and Nordic countries, while expanding links with major retail chains in Asia and Europe to support processed coffee exports./.