Vietnam's Coffee Output Declines Due To Drought, Exacerbating Global Supply Crunch – CoffeeTalk

Vietnam’s coffee production is expected to be lower this year due to bad weather, which has compounded a supply shortfall that has led to global prices surging. The world’s biggest producer of the robusta variety is forecasted to produce 26.5 million bags for 2024-25, lower than the group’s December estimate and compared to 27 million bags in 2023-24. Global supplies have tightened following harvest problems in other key growers, such as Brazil, with robusta futures in London soaring almost 70% over the past year. For Vietnam, drought impacted the crop, and the International Coffee Organization’s executive director, Vanúsia Nogueira, said they are very short on stocks. Vietnam’s 2024-25 harvest is in the final stages, and beans will soon be developing for the next season. Coffee tree flowering “looks good” so far due to ample rain, which could be beneficial for future supply. Futures for robusta, the variety typically used for instant drinks and espressos, were little changed at $5,550 a ton in London on Wednesday. Arabica coffee, the high-end beans favored in specialty brews, declined as much as 2.6% in New York.

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