Vietnam Coffee Exports Rise 16% in Early 2026 While Revenue Falls

Dubai – Qahwa World

Vietnam’s coffee sector recorded a strong increase in export volumes during the first four months of 2026, while total export revenues declined due to easing global prices following the record highs of the previous year.

According to official government data, Vietnam exported approximately 810,000 tons of coffee between January and April 2026, representing a 15.8% year-on-year increase. The rise reflects continued strength in production and logistics, reinforcing Vietnam’s position as the world’s largest robusta coffee producer.

However, despite higher shipment volumes, export revenues fell by 7% compared to the same period in 2025, totaling 3.69 billion dollars. This divergence between volume and value reflects a clear correction in global coffee prices, particularly in the robusta segment.

  • Volume and Value Gap in Market Performance

The latest figures highlight a widening gap between export volume and export value. While shipments increased significantly, the average export price declined to around 4,555 dollars per ton, down from the elevated levels seen in mid-2025.

This price normalization follows a period of tight global supply that previously pushed prices to historic highs. Improved harvest conditions in Vietnam’s Central Highlands and recovering output from other producing countries have eased supply constraints, contributing to softer prices.

  • Market Dynamics and Domestic Trends

The decline in export revenue is primarily linked to weaker global coffee prices as markets adjust to expectations of higher supply. Increased production in Vietnam, along with competitive exports from countries such as Indonesia, has contributed to a more balanced global market.

Domestically, farm-gate prices in key coffee-producing provinces such as Dak Lak and Lam Dong fluctuated between 88,700 and 89,300 Vietnamese dong per kilogram in April. These movements encouraged cautious selling behavior among farmers, who are closely monitoring price trends before releasing stocks.

Earlier in the year, export momentum was already strong. Shipments in January and February 2026 were reported to be up by around 14 percent in some datasets, with the first quarter maintaining solid volume growth despite continued pressure on export values.

  • Strong Crop Outlook Supports Export Growth

Vietnam’s 2025 to 2026 coffee crop is expected to remain strong, with earlier projections indicating a potential increase of around 10 percent compared to the previous season. This growth is supported by improved weather conditions following earlier drought-affected periods.

The favorable production outlook has helped sustain high export volumes and ensured stable supply availability in global markets.

  • Strategic Shift Toward Value Addition

In response to ongoing price volatility in raw coffee markets, Vietnamese authorities and industry stakeholders are accelerating efforts to expand deep processing.

This strategy focuses on increasing exports of roasted, ground, and instant coffee products rather than relying mainly on green bean shipments. Investments are being directed toward advanced processing facilities to strengthen value addition and improve competitiveness in global supply chains.

  • Outlook

Industry analysts expect Vietnam to maintain strong export volumes throughout 2026, potentially reaching near-record levels if current production trends continue. However, revenue growth may remain under pressure unless global prices recover or demand strengthens in key markets such as the European Union, the United States, and Japan.

Vietnam’s performance in early 2026 highlights a key trend in global coffee trade: rising supply is driving higher export volumes, while price normalization is limiting overall export value.

Source: General Statistics Office (GSO) / Ministry of Agriculture and Rural Development

Arabica Rebounds: Brazil Drought Fears Drive Price Surge Despite Tariff Removal Pressure

Dubai – Qahwa World

Arabica coffee futures experienced a strong rally today, Monday, fueled by renewed concerns over Brazil’s current crop conditions. This upward movement reflects the market’s conflicting forces, which are still reacting to the executive order on tariff removal issued late last week.

March Arabica coffee futures (KCH26) surged by $7.40 (+2.00%) today, following a report highlighting alarming dry conditions in Brazil. Somar Meteorologia reported that Minas Gerais, the country’s largest Arabica-growing state, received only 26.4 mm of rain in the week ended November 21, amounting to just 49% of the historical average. This significant rainfall deficit raises concerns about the health and development of the current crop, providing strong support for the market price.

Further bolstering the price are shrinking stockpiles. ICE-monitored Arabica inventories have fallen to a 1.75-year low of 398,645 bags. This inventory drawdown is a direct consequence of previously imposed US tariffs on Brazilian coffee imports, which led American buyers to void new contracts, severely tightening US supplies, as Brazil typically supplies about a third of America’s unroasted coffee.

Despite today’s rally, prices remain near the 7-week low recorded in the previous session. That sharp decline was triggered by the US President signing an executive order late last Thursday, exempting Brazilian agricultural products, including green coffee, from the existing 40% tariffs. This tariff removal, which does not cover instant coffee, created immediate downward pressure as traders anticipated a greater influx of Brazilian supply into the US market.

Longer-term expectations for Brazil’s next crop continue to act as a bearish factor. StoneX analysts last week forecast that Brazil will produce 70.7 million bags of coffee in the 2026/27 season, including 47.2 million bags of Arabica, representing a projected 29% year-on-year increase. Furthermore, Climatempo forecasts suggest heavy rainfall will continue in growing regions this week, providing favorable growth conditions for the subsequent crop.

In the Robusta market, January futures (RMF26) edged lower by 12 points (-0.27%), pressured by forecasts for drier weather in Vietnam. Improved dry conditions are expected to allow the resumption of the Robusta harvest in key provinces like Dak Lak, easing supply delay concerns in Vietnam, the world’s largest Robusta producer. Official data previously showed that Vietnam’s coffee exports for January through October 2025 rose 13.4% year-on-year.