EnCoffee exports from Vietnam have been in decline and are set to continue doing so due to stockpiling by Vietnamese exporters, according to Simexco Daklak’s CEO, Le Tien Hung, Bloomberg reports. Panjiva’s analysis of International Coffee Organization data shows Vietnam’s exports have declined steadily in 2019 with a 7.0% year over year decline in 2Q followed by a 4.9% drop in July.
That’s been offset however by a 53.5% surge in shipments from Brazil in 2Q and a 28.2% rise in July. When added to a recovery in shipments from Indonesia of 20.2% year over year in July from a 1.3% drop in June that meant that global shipments increased by 8.7% year over year in July.
Source: Panjiva
Vietnam’s apparent attempts to reflate prices – which have fallen for several months as outlined in Panjiva’s research of Aug. 5 – via restricting supply have proven particularly ineffective in the U.S. Panjiva’s data shows U.S. imports from Vietnam fell 11.0% year over year in 2Q and by a further 11.5% in July.
Seaborne shipment data show they likely slumped by a further 43.3% in August. In the meantime shipments from Brazil to the U.S. jumped 40.9% in 2Q and by a further 63.6% in July, slowing to 21.1% growth in August.
Source: Panjiva
Leading importers of Vietnamese coffee who may have had to find alternative sources included Louis Dreyfus Coffee, which may have represented 11.5% of Vietnamese shipments in the 12 months to Aug. 31, which has also sourced broadly from Brazil and Honduras.
That was followed by Rothfos with 10.4% of shipments, the largest part of whose shipments have come from Brazil and Guatemala.
Starbucks, the third largest importer by weight, by contrast had only minimal imports from Vietnam, with its supplies dominated by Brazil and Peru as well as processed coffee from Germany.
Source: Panjiva
