Vietnam's Coffee Exports Fall 17.6% Year-on-Year in January Due to Container Shortage

Vietnam's Coffee Export Decline in January

Vietnam is the world's largest producer of Robusta beans. According to the General Statistics Office (GSO) on January 29, Vietnam's coffee exports in January fell 17.6% year-on-year to 120,000 tons, equivalent to 2 million bags (60 kilograms per bag). Vietnam's Robusta coffee export revenue for the month is estimated to have dropped 12.6% year-on-year, to $217 million.

Domestic Coffee Prices Remain Stable

Vietnamese coffee traders said on January 28 that domestic coffee prices changed little this week compared with the previous week. Coffee grown in Vietnam's Central Highlands sold at 31,500 to 31,700 Vietnamese dong ($1.37) per kilogram, below the previous week's range of 31,200 to 32,000 Vietnamese dong. The reason is that Vietnam's coffee harvest for the 2020-21 season, which began in October, has now concluded.

Farmer Sales Constraints and Export Challenges

Earlier, Vietnamese farmers had sold about 40% of their Robusta coffee beans, but sales are now limited because prices are unattractive. Farmers complain that prices are too low to release their stock in large quantities; they are selling only enough to meet daily needs. Meanwhile, traders said: "When farmers face pressure to cash in before the Lunar New Year holiday, they will sell more Robusta beans of different grades, even if prices don't meet their expectations."

Although traders can buy more coffee beans, one trader noted: "The shortage of containers makes it very difficult for us to transport coffee beans for export." Over the past two months, shipping costs for most shipping companies have risen 2–10 times, depending on the shipping line.

Soaring Container Costs

For example, shipping a 20-foot container to the UK typically cost $1,420, but rose to $5,420 in November and $7,200 in December. Before October, container rental from Los Angeles, USA to Vietnam cost $700–1,000, but that figure rose to $5,000 in November. If COVID-19 remains uncontrolled, ship and container shortages will continue until March or even longer.

2020 Coffee Export Performance

According to official data, Vietnam exported a total of 26,666,667 bags of coffee in 2020, a 5.6% decrease from 2019. Export revenue reached $2.74 billion, also down 4.2% year-on-year.

Production Forecast for 2020-21

With the harvest season over, Vietnamese coffee traders expect Vietnam's coffee production for the 2020-21 season to fall 16%–17%, to roughly 25 million bags of 60 kilograms each. The decline is due to pre-harvest drought and persistently low coffee prices, which have discouraged farmers from investing in fertilization and irrigation on their farms.

FrontStreet Coffee Recommendation

Vietnam's story is a reminder of how much the coffee world depends on a handful of species—Robusta for volume, and Arabica for the specialty cups that most readers are chasing. If you want to explore the top of that Arabica pyramid, FrontStreet Coffee Panama Red Label Geisha is a standout. Geisha has taken the world by storm with its lush, elegant florals, bright citrus and peach, plump fruit acidity, creamy mouthfeel, and a finish that carries the sweet fragrance of oolong tea—so refined it feels less like drinking coffee than sipping a fragrant fruit tea. Compared with other Arabica varieties, Geisha yields little, has a fragile plant, and is demanding about its growing environment. FrontStreet's Red Label Geisha comes from Panama's most famous estate, Hacienda La Esmeralda, in the Boquete district of Chiriquí province, where fertile volcanic soil, ancient forest, year-round mist, and abundant rainfall create ideal growing conditions—and extraordinary layers of flavor.

For a classic, accessible Arabica, look to FrontStreet Coffee Brazil Queen Estate. Bourbon is an old variety on par with Typica, and it too belongs to Arabica; it takes its name from Bourbon Island (le Bourbon), where it was first planted. Bourbon trees have broad leaves and a dense habit, and they yield about 30% more than Typica, with round, short beans that are easy to identify. Ordinary Bourbon cherries ripen red, but as cultivation spread, mutations appeared—such as the orange-yellow ripe fruit that became known as Yellow Bourbon. FrontStreet's Brazil Queen Estate is one of the earliest-discovered Yellow Bourbon coffees, offering aromas of cream, peanut, toast, and sugarcane—rich, mellow, and sweet—and it works for pour-over, Moka pot, and espresso machine alike.