Vietnam’s coffee exports are surging this year — up 32% to $2.7 billion on a volume of 1.3 million tons compared to last year, and he world’s largest food company has big plans for expanding its share of future crops.
Over the next six years, Nestle says it will purchase five times as much coffee directly from Vietnamese farmers (60,000 tons) as it does now. Currently, Nestle buys up to 250,000 of Vietnam’s 1.6 million ton coffee crop, but not directly from farmers.
Nestle also plans to produce instant coffee, mainly for the growing Vietnamese market, at a $270 million plant northeast of Ho Chi Minh City starting in November.
The US accounts for nearly 13% of Vietnam’s coffee exports, followed by Germany’s 12%. Exports to Indonesia are up 10-fold and to Mexico nearly more than 3-fold. But coffee exports from Vietnam are expected to drop next year, partly because aging coffee plants need to be replaced.