Can Vietnam and Indonesia Compensate for Brazil’s Decline in Coffee Production?

Can Vietnam and Indonesia Compensate for Brazil’s Decline in Coffee Production?

 

As coffee enthusiasts around the world watch with concern the decline in Brazil’s coffee production this year—and with projections suggesting that next year’s output could be the lowest in decades—news from Vietnam and Indonesia has come to ease some of these worries.

The U.S. Department of Agriculture (USDA) in its latest semi-annual report predicted a significant increase in global coffee production for the 2024-2025 season, driven by a recovery in production in Vietnam and Indonesia. Global output is expected to reach 174.9 million 60-kg bags, an increase of 6.9 million bags compared to the previous season. However, rising global coffee consumption is likely to reduce ending stocks, adding further pressure to supply.

Vietnam, the world’s second-largest coffee producer, is projected to produce around 30.1 million bags, an increase of 2.6 million bags compared to the previous season. Despite this improvement, production remains below the record set in the 2021-2022 season. With greater supplies available, Vietnam’s coffee bean exports are expected to rise by 1.8 million bags, reaching 24.4 million bags.

Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association, noted that rising global coffee prices have also pushed domestic prices to unprecedented levels. In regions like Dak Lak, Lam Dong, and Dak Nong, coffee prices ranged between 121,800 and 122,700 Vietnamese dong per kilogram (approximately $4.81–$4.84), reflecting an increase of up to 11,000 dong per kilogram compared to earlier this month.

In Indonesia, coffee production is expected to recover by approximately 2.8 million bags, reaching 10.9 million bags, thanks to favorable agricultural conditions in regions like South Sumatra and Java. Robusta production is projected to account for approximately 9.5 million bags of the total, while Arabica contributes 1.4 million bags. This increase in production translates to a rise in exports by 2.2 million bags, totaling 6.5 million bags annually.

Meanwhile, Brazil, the world’s largest coffee producer, is expected to see only a slight increase in production, reaching 66.4 million bags. Arabica production is forecast to rise by 500,000 bags to 45.4 million bags, while Robusta production is expected to decline by 400,000 bags to 21 million bags. Adverse weather conditions, such as drought and high temperatures, have negatively impacted productivity. Consequently, Brazil’s coffee exports are forecast to decline by 2.6 million bags, totaling 40.5 million bags, mainly due to depleted stocks from the previous season.

Global coffee consumption is expected to rise by 5.1 million bags, reaching 168.1 million bags, with the largest increases in the European Union, the United States, and China. Despite the rise in production, global ending stocks are forecast to decline by 1.5 million bags, reaching 20.9 million bags.

In parallel, Vietnam’s coffee export revenues are projected to reach a record $5.6 billion in 2024. This growth comes as global coffee prices surge, offsetting a 13.5% decline in export volumes. Between January and November 2024, Vietnam exported approximately 1.2 million tons of coffee, generating nearly $5 billion in revenue—an increase of 38.1% compared to the same period last year.

As the new harvest season begins, farmers and traders are closely monitoring price fluctuations. Many farmers are deliberating whether to sell their coffee stock immediately or hold onto it in anticipation of further price increases, especially given the limited supply from other coffee-producing countries.

These developments highlight the dynamic nature of the global coffee market. As production and demand both rise, the question remains: Can Vietnam and Indonesia bridge the gap created by Brazil’s challenges? The coming months will reveal more.

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[:ar]Privacy Policy for qahwa world At qahwaworld, accessible from qahwaworld.com, one of our main priorities is the privacy of our visitors. This Privacy Policy document contains types of information that is collected and recorded by qahwaworld and how we use it. If you have additional questions or require more information about our Privacy Policy, do not hesitate to contact us. This Privacy Policy applies only to our online activities and is valid for visitors to our website with regards to the information that they shared and/or collect in qahwaworld. This policy is not applicable to any information collected offline or via channels other than this website. Our Privacy Policy was created with the help of the Free Privacy Policy Generator. Consent By using our website, you hereby consent to our Privacy Policy and agree to its terms. 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We would like to make sure you are fully aware of all of your data protection rights. Every user is entitled to the following: The right to access – You have the right to request copies of your personal data. We may charge you a small fee for this service. The right to rectification – You have the right to request that we correct any information you believe is inaccurate. You also have the right to request that we complete the information you believe is incomplete. The right to erasure – You have the right to request that we erase your personal data, under certain conditions. The right to restrict processing – You have the right to request that we restrict the processing of your personal data, under certain conditions. The right to object to processing – You have the right to object to our processing of your personal data, under certain conditions. The right to data portability – You have the right to request that we transfer the data that we have collected to another organization, or directly to you, under certain conditions. If you make a request, we have one month to respond to you. If you would like to exercise any of these rights, please contact us.

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Another part of our priority is adding protection for children while using the internet. We encourage parents and guardians to observe, participate in, and/or monitor and guide their online activity. Qahwa World does not knowingly collect any Personal Identifiable Information from children under the age of 13. If you think that your child provided this kind of information on our website, we strongly encourage you to contact us immediately and we will do our best efforts to promptly remove such information from our records.[:ru]Privacy Policy for qahwa world At qahwaworld, accessible from qahwaworld.com, one of our main priorities is the privacy of our visitors. This Privacy Policy document contains types of information that is collected and recorded by qahwaworld and how we use it. If you have additional questions or require more information about our Privacy Policy, do not hesitate to contact us. This Privacy Policy applies only to our online activities and is valid for visitors to our website with regards to the information that they shared and/or collect in qahwaworld. This policy is not applicable to any information collected offline or via channels other than this website. Our Privacy Policy was created with the help of the Free Privacy Policy Generator. Consent By using our website, you hereby consent to our Privacy Policy and agree to its terms. Information we collect The personal information that you are asked to provide, and the reasons why you are asked to provide it, will be made clear to you at the point we ask you to provide your personal information. If you contact us directly, we may receive additional information about you such as your name, email address, phone number, the contents of the message and/or attachments you may send us, and any other information you may choose to provide. When you register for an Account, we may ask for your contact information, including items such as name, company name, address, email address, and telephone number. How we use your information We use the information we collect in various ways, including to: Provide, operate, and maintain our website Improve, personalize, and expand our website Understand and analyze how you use our website Develop new products, services, features, and functionality Communicate with you, either directly or through one of our partners, including for customer service, to provide you with updates and other information relating to the website, and for marketing and promotional purposes Send you emails Find and prevent fraud Log Files qahwaworld follows a standard procedure of using log files. These files log visitors when they visit websites. All hosting companies do this and a part of hosting services' analytics. The information collected by log files include internet protocol (IP) addresses, browser type, Internet Service Provider (ISP), date and time stamp, referring/exit pages, and possibly the number of clicks. These are not linked to any information that is personally identifiable. The purpose of the information is for analyzing trends, administering the site, tracking users' movement on the website, and gathering demographic information. Cookies and Web Beacons Like any other website, qahwaworld uses 'cookies'. These cookies are used to store information including visitors' preferences, and the pages on the website that the visitor accessed or visited. The information is used to optimize the users' experience by customizing our web page content based on visitors' browser type and/or other information. For more general information on cookies, please read the Cookies article on Generate Privacy Policy website. Google DoubleClick DART Cookie Google is one of a third-party vendor on our site. It also uses cookies, known as DART cookies, to serve ads to our site visitors based upon their visit to www.website.com and other sites on the internet. However, visitors may choose to decline the use of DART cookies by visiting the Google ad and content network Privacy Policy at the following URL – https://policies.google.com/technologies/ads Our Advertising Partners Some of advertisers on our site may use cookies and web beacons. Our advertising partners are listed below. Each of our advertising partners has their own Privacy Policy for their policies on user data. For easier access, we hyperlinked to their Privacy Policies below. Google https://policies.google.com/technologies/ads Advertising Partners Privacy Policies You may consult this list to find the Privacy Policy for each of the advertising partners of qahwaworld. Third-party ad servers or ad networks uses technologies like cookies, JavaScript, or Web Beacons that are used in their respective advertisements and links that appear on qahwaworld, which are sent directly to users' browser. They automatically receive your IP address when this occurs. These technologies are used to measure the effectiveness of their advertising campaigns and/or to personalize the advertising content that you see on websites that you visit. Note that qahwaworld has no access to or control over these cookies that are used by third-party advertisers. Third Party Privacy Policies qahwaworld's Privacy Policy does not apply to other advertisers or websites. Thus, we are advising you to consult the respective Privacy Policies of these third-party ad servers for more detailed information. It may include their practices and instructions about how to opt-out of certain options. You can choose to disable cookies through your individual browser options. To know more detailed information about cookie management with specific web browsers, it can be found at the browsers' respective websites. CCPA Privacy Rights (Do Not Sell My Personal Information) Under the CCPA, among other rights, California consumers have the right to: Request that a business that collects a consumer's personal data disclose the categories and specific pieces of personal data that a business has collected about consumers. Request that a business delete any personal data about the consumer that a business has collected. Request that a business that sells a consumer's personal data, not sell the consumer's personal data. If you make a request, we have one month to respond to you. If you would like to exercise any of these rights, please contact us. GDPR Data Protection Rights We would like to make sure you are fully aware of all of your data protection rights. Every user is entitled to the following: The right to access – You have the right to request copies of your personal data. We may charge you a small fee for this service. The right to rectification – You have the right to request that we correct any information you believe is inaccurate. You also have the right to request that we complete the information you believe is incomplete. The right to erasure – You have the right to request that we erase your personal data, under certain conditions. The right to restrict processing – You have the right to request that we restrict the processing of your personal data, under certain conditions. The right to object to processing – You have the right to object to our processing of your personal data, under certain conditions. The right to data portability – You have the right to request that we transfer the data that we have collected to another organization, or directly to you, under certain conditions. If you make a request, we have one month to respond to you. If you would like to exercise any of these rights, please contact us. Children's Information Another part of our priority is adding protection for children while using the internet. We encourage parents and guardians to observe, participate in, and/or monitor and guide their online activity. qahwaworld does not knowingly collect any Personal Identifiable Information from children under the age of 13. If you think that your child provided this kind of information on our website, we strongly encourage you to contact us immediately and we will do our best efforts to promptly remove such information from our records.[:]
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