As a major global coffee producer, Vietnam faced a setback of declining export volumes in the first half of 2024. Data shows that coffee export volume fell by 10.5% year-on-year in the first six months to 902,000 tons, but thanks to a 50.4% surge in average export prices, total export value instead climbed to US$3.22 billion, an increase of 34.6%. Behind the production decline are both irreversible damage to coffee trees caused by drought and competitive pressure from cash crops such as durian and passion fruit, with large numbers of farmers switching to more profitable fruit trees, leading to a continued shrinkage of coffee-growing area. Although coffee prices have risen to high levels, they are still not attractive compared with the profits from crops such as durian. At the same time, demand for Vietnamese coffee in the South Korean market is growing, bringing a glimmer of warmth to the export outlook. [more…]

Due to a combination of extreme weather, falling coffee futures prices and labor shortages, El Salvador's coffee bean export volume and export value both fell sharply in the first four months of the 2023/24 harvest season. According to a report by the Salvadoran Coffee Institute, export volume fell by nearly 47% year-on-year, export value dropped by more than 50%, and in January alone export value plunged by more than 90%. The United States remains the largest buyer, but Italy, Saudi Arabia and other countries follow closely behind in share. The decline in production is directly related to drought and extreme rainfall caused by the El Niño phenomenon. At the same time, El Salvador's coffee exports to China are on the rise, with 13 trading companies having completed registration in China, and the industry is optimistic about the potential of the Chinese market. Front Street Coffee continues to follow developments in the producing regions and bring frontline news to enthusiasts. [more…]

Costa Rica has long ranked among the world's leading coffee producers and exporters, thanks to its volcanic soil, mild climate, and abundant rainfall. In recent years, however, persistent high temperatures and drought have been eroding its growing environment. In the Desamparados canton, a key production area in the Central Valley, some estates have seen yields fall by as much as 15%, and production for the 2024/25 harvest season is expected to drop 18% from the previous season. With water shortages during the flowering period, greater susceptibility to disease, aging trees, and labor shortages piling up, export volumes and foreign exchange earnings are coming under pressure. Faced with these challenges, the government has launched a low-carbon coffee program, while research institutions are promoting drought-resistant varieties and adaptive farming methods in an effort to cushion the impact of climate change. [more…]

The latest March export report released by the National Federation of Coffee Growers of Colombia (FNC) shows that although coffee production and export volume for the month increased compared with the same period last year, both declined month-on-month, mainly due to drought weather. At the same time, Colombia's president previously proposed that the state should take over the FNC, sparking industry controversy, while the government has so far taken no practical action. Coffee growers' committees from 15 provinces across the country jointly spoke out, pointing out that the coffee industry is facing a difficult period and calling on the government to provide necessary assistance rather than encourage division. This article will provide a detailed interpretation of the report data, climate impacts and policy controversies, and bring related recommendations from Front Street Coffee. [more…]

The Kenyan coffee industry is facing unprecedented challenges. The latest report from the United States Department of Agriculture shows that, affected by a reduction in planted area and heavy rains, Kenya's coffee production in the 2024/25 marketing year is expected to fall to 750,000 bags, a year-on-year decline of 6.3%. At the same time, new policies and regulations implemented by the government are also profoundly affecting the entire industry chain, with impacts from production and processing to export trade. This series of changes has not only affected Kenya's coffee export volume and prices, but has also had a far-reaching impact on farmers' livelihoods and industry development. Front Street Coffee will provide you with an in-depth analysis of the current situation and future of Kenya's coffee industry. [more…]

Honduras, as Central America's largest producer and exporter of washed Arabica coffee, is facing a severe industry crisis. Affected by factors such as changing weather patterns, high incidences of leaf rust, and labor shortages, the country's coffee production and exports have both declined. Foreign exchange earnings in the first four months of this year have already decreased by nearly 100 million US dollars, with an estimated potential loss of about 300 million US dollars for the entire year. Income from coffee cultivation in the 2023/24 season fell by approximately 27% compared to the previous season. The president of Honduras's National Coffee Council warned that if urgent measures are not taken, harvests will continue to decline, causing far-reaching impacts on producers and the entire country. Front Street Coffee continues to follow developments in Honduran coffee-producing regions, bringing the latest information to coffee enthusiasts. [more…]

The Vietnam Coffee and Cocoa Association released a report at the Asian International Coffee Conference held in Ho Chi Minh City, projecting Vietnam's coffee output for the 2024/25 crop year at 28 million bags, a decline of 5%-7% from the previous season. Despite the upward revision in production expectations, Robusta coffee futures prices still surged sharply to $4,907 per ton, with analysts suggesting they could further break through $5,000 per ton. Domestic coffee prices in Vietnam have subsequently rebounded, and export revenue has grown significantly, but heightened market volatility has led traders and coffee farmers to adopt a wait-and-see attitude. Multiple factors, including severe weather, geopolitical tensions, and rising freight costs, continue to affect Vietnam's coffee industry. Front Street Coffee brings you an interpretation of the latest developments in origin regions. [more…]

Honduras, as the largest coffee producer in Central America, has recently presented a complex situation of rebounding export volumes but declining revenue. In February 2024, Arabica sales increased by 26% year-on-year, yet export earnings fell by 20% in the first four months of this harvest season. Against the backdrop of traditional buyers being concentrated in seven countries across Europe, the Americas, and Asia, Honduras is actively seeking market diversification. As China allows direct imports of its green coffee beans and more companies obtain certification for exports to China, this Central American country's coffee industry has welcomed new opportunities. The expansion of cafes in Chinese cities and rising demand among young consumers have injected strong momentum into Honduras's coffee exports. [more…]

Vietnam, as a major global robusta coffee-producing region, has recently faced a succession of extreme weather challenges. Two consecutive tropical storms brought heavy rainfall, causing rapid flooding in the upper reaches of the Mekong River and threatening coffee cultivation in low-lying downstream production areas. At the same time, drought earlier in the year has already adversely affected coffee flowering, making a decline in the new crop season almost certain. Some coffee farmers have switched to more profitable crops such as durian, further reducing the area devoted to coffee cultivation. Port facilities have been damaged and exports hindered, and combined with Indonesia's reduced export capacity, global robusta supply is expected to face a shortage for the fourth consecutive year. Front Street Coffee will continue to follow developments in the production regions and bring enthusiasts the latest news. [more…]

A drought and forest fires lasting for months are sweeping across South America, and Colombia has not been spared. Forests in many places have been burned, water sources are running dangerously low, the water level of the Amazon River has plummeted, and Cauca Department has suffered its worst fires in nearly three decades, with large numbers of coffee crops damaged. Water rationing policies have left coffee farmers in a dilemma: insufficient irrigation affects yields, while exceeding water limits brings fines. The latest data show that Colombia's coffee production had fallen to 1.05 million bags in August, with inventories down 7.2% month on month. As the world's third-largest coffee-producing country, declining output and inventories are pushing up international coffee prices. [more…]

Brazil, the world's largest coffee producer, is being battered by three consecutive years of La Niña, with output in its main growing regions falling sharply and the outlook for the 2023 harvest far from optimistic. Meanwhile, Uganda, Africa's largest coffee exporter, has also seen its export volumes decline due to drought, while data from the International Coffee Organization show that global coffee consumption has continued to recover since the pandemic. With tightening supply overlapping with recovering demand, coffee futures prices remain elevated, and domestic traders have begun stockpiling physical beans. This article will review the production declines in Brazil and Uganda, the weather mechanisms behind them, and the shifts in supply and demand across the global coffee market, and will also include Front Street Coffee's specialty bean recommendations for readers' reference. [more…]

Latest data from the Vietnam Coffee and Cocoa Association (Vicofa) shows that in 2023, Vietnam's domestic coffee prices climbed to 70,000 Vietnamese dong per kilogram (about 207 yuan), hitting a multi-year high. Although export volume fell 4.5% year-on-year to 166.2 tons (about 27.7 million bags), driven by prices, export revenue rose 3.4% to US$4.08 billion, the highest level on record. Supply shortages and quality improvements are the two major drivers of the price increase. However, drought conditions and a shift in planting structure are weakening future production prospects. Vicofa expects production to decline by 10% in the 2023~2024 season, and coffee prices are likely to remain high. [more…]

The European Parliament recently voted to postpone the implementation date of the EU Deforestation Regulation (EUDR) to December 2025, giving Kenyan coffee exporters an extra year of buffer time to adapt to the new rules. However, many exporters remain deeply worried, believing that under current conditions it will be very difficult to meet the EU's strict requirements. The EU is one of the most important overseas markets for Kenyan coffee, accounting for more than 20% of its total exports. Yet with Kenya's fragmented smallholder farmers, underprepared cooperatives, high compliance costs, and multiple pressures including stalled reforms, climate-related production declines, the Red Sea crisis, and port congestion, the outlook for this East African coffee-producing country is full of uncertainty. [more…]

The latest monthly report from the Uganda Coffee Development Authority shows that coffee exports in March amounted to 329,686 60-kg bags, generating revenue of 246.8 billion shillings (approximately US$64.74 million), a marked decline from February, with a year-on-year drop of 32.4% in volume and a 9.45% decrease in revenue. Heavy rains triggered by El Niño battered the main harvest season, causing cherry drop and reduced yields. Nevertheless, on a coffee-year basis, total exports still reached 5.9 million bags, with revenue up 16.91% year on year. Robusta prices rose amid tight supply from Vietnam, and Uganda benefited as a result. The government is seeking funding to establish a traceability system and improve mechanization, while the president has set a target of 20 million bags by 2025. Uganda is also bullish on China's 15%-20% annual growth in coffee consumption and hopes to expand exports to China. [more…]

The latest report from the National Federation of Coffee Growers of Colombia (FNC) shows that the country's coffee production in February 2024 decreased by 6.2% year-on-year. Although export volume grew month-on-month, overall exports over the past 12 months fell by 3.1%. Despite having shaken off the effects of El Niño, La Niña weather is expected to arrive in June-August and may last throughout the second half of the year, bringing new challenges to coffee production. To this end, the FNC held a steering committee meeting with grower representatives from various regions to discuss preventive measures to safeguard coffee farmers' incomes. At the same time, the FNC launched an export platform, Cafix, aimed at reducing transportation costs and simplifying export procedures. Front Street Coffee continues to follow developments in Colombian coffee and bring the latest producing-region news to enthusiasts. [more…]

Vietnam, as a major global exporter of coffee and pepper, has recently drawn widespread attention due to cargo theft incidents at its ports. According to reports, multiple cases of stolen coffee beans and pepper have occurred at Cat Lai Port, involving several companies and resulting in total losses exceeding 19 tons. Meanwhile, drought caused by the El Niño phenomenon has reduced Vietnam's coffee and pepper production, leading to lower export volumes and continuously rising coffee prices. Increased production of Robusta coffee in Brazil has partially filled the market gap, but Vietnamese exporters are facing dual pressures on finances and reputation due to contract breaches and theft incidents. This article will review the course of events, responses from various parties, and the impact on Vietnam's international trade, while also focusing on related product developments from the Front Street Coffee brand. [more…]

Affected by extreme weather triggered by the El Niño phenomenon, Africa's major coffee-producing regions are undergoing a severe test. As Africa's largest coffee producer, Ethiopia's output for the 2022/23 fiscal year is expected to decline to 7.3 million bags, a decrease of about 1 million bags from previous expectations. The alternating onslaught of drought and floods has not only damaged infrastructure in the producing areas but also driven up transportation costs. At the same time, the European Union Deforestation Regulation (EUDR)'s strict requirements for origin traceability make it difficult for smallholder farmers to comply, forcing export volumes to be revised down by 19%. Shrinking exports, compounded by the impact of the pandemic and civil war, have intensified the country's fiscal pressure, and it even faces the risk of sovereign debt default. International coffee futures prices, meanwhile, continue to fluctuate at high levels due to constrained supply, and market concerns about short-term supply are steadily mounting. [more…]

The latest report from the United States Department of Agriculture shows that Indonesia's total coffee production for 2024/25 is expected to increase by about 2.4 million bags (60 kg/bag) compared with the previous year, but the overall recovery remains below expectations, with production revised down by 8% year on year. Affected by strong domestic demand, the volume available for export is expected to fall by 12% to 5.2 million bags, though this is still 18% higher than exports in 2023/24. Recovery has been slow in the Robusta-producing areas of southern Sumatra, while the Arabica-producing areas of northern Lintong have suffered heavy rainfall and secondary disasters. Domestic purchasing power is weak, and consumption growth is less than 1%. The European Union had increased purchasing because of the EUDR regulations, but later postponed implementation for one year. Production in Vietnam and Brazil is unstable, and coffee prices remain high. Front Street Coffee will continue to monitor developments in producing regions. [more…]

The Kenya Export Promotion and Branding Agency, in collaboration with the Agriculture Sector Development Agency, is jointly planning to create a unified national coffee brand, aiming to consolidate global marketing resources and enhance the influence of Kenyan coffee in the international market. However, in recent years, the country's coffee production has continued to decline, and export performance has been volatile since 2016. Shrinking cultivation areas, rising production costs, price fluctuations, and unpredictable weather conditions are all constraining industry development. Although the government has implemented reforms to reduce intermediary links through the direct settlement system of the Nairobi Coffee Exchange, tightened processing licenses have led to the closure of large processing plants, with raw materials piling up and even rotting at small factories. Meanwhile, although the EU Deforestation Regulation has been delayed by one year, it still puts considerable pressure on traders and African producing countries. New variables such as the Red Sea crisis, port congestion, and rising domestic consumption have also led Kenyan coffee industry players to place greater expectations on policy. [more…]

Since the start of summer, many countries around the world have experienced sustained high temperatures, with sea surface temperatures generally elevated outside the near-equatorial eastern Pacific and land temperatures rising accordingly, dealing a blow to agricultural production including coffee. Vietnam has suffered its worst drought in nearly a decade, with coffee trees severely damaged; Indonesia is still weighed down by last year's drought, reducing the volume available for export; Brazil's output has fallen short of expectations, and about 80% of Mexico's planted area has been affected, with production cuts expected to reach as much as 50%. At the same time, Colombia's first-half output hit a three-year high. The widening scope of production cuts pushed the ICO composite coffee price index up 8.9% month on month, and La Niña weather may further aggravate volatility. [more…]