Vietnam Robusta Coffee Crop To Shrink By Up To 10% This Season, Traders Say – CoffeeTalk

Vietnam’s coffee crop, the largest producer of the robusta bean variety, is expected to fall by up to 10% in the new season, possibly the lowest in a decade. This decline follows the country’s worst drought in nearly a decade, which lasted between March and early May. Vietnam accounts for nearly 40% of the world’s robusta, and its declining output has driven exchange futures to their highest in nearly half a century last month. The Mercantile Exchange of Vietnam’s deputy chief Nguyen Ngoc Quynh expects a 10% fall. Meanwhile, Trinh Duc Minh, head of the Buon Ma Thuot coffee association, predicts output to fall by 5.4% in the 2024/25 season, which will run from this month to next September. Europe-based traders expect falls of as little as 3.4%, but even that would be significant because it adds to the global robusta shortage that has driven the two-year price rally that has affected arabica and robusta. Demand for robusta has increased after roasters started switching to it after a freak frost in mid-2021 in top arabica producer Brazil decimated the crop there.

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