A Bloomberg survey says Vietnam, the world’s second biggest producer of coffee after Brazil, is expected this fall to harvest a record 1.3 million tons of coffee (worth $3 billion) — 93% of it low-grade Robusta beans used in instant coffee, and almost all of it for export.
The Swiss company Nestlé has made a $270 million investment in the Vietnam coffee crop and hopes to convince more Vietnamese to drink products like instant Nescafe. Meanwhile, Vietnamese coffee producers Trung Nguyen, Thai Hoa, and Vinacafe Bien Hoa are becoming more competitive.
The anticipated bumper crop is likely to lead to wider availability (and therefore lower prices) of Robusta beans on the global market, and greater efforts to convert domestic consumers in Vietnam from the green tea drinkers they have been for centuries.
More on Vietnam’s bumper coffee crop