Vietnam's coffee production will decline by 6% year-on-year to 29.75 million bags (GBE), including 28.74 million bags of robusta, during the 2022/23 marketing year that began in October, according to an annual report by the United States Department of Agriculture. The USDA attributes the decline to a reduction in land under cultivation of coffee; higher costs for labor and fertilizer; and robusta's off-cycle year.
Production costs rose by 15% from the previous marketing year to $1,200 per metric ton, driven in part by a 70% rise in fertilizer costs. Higher costs for chemical inputs prompted farmers to switch to natural fertilizers, reducing yields. The decline in land under coffee is being seen in the Central Highlands, where farms are intercropping with or switching to high-value fruit trees like durian, avocado and passion.
Production is forecast to rise for the MY 2023/24 crop, boosted by favorable temperatures and higher rainfall. Also supporting a larger crop is a trend toward replanting with more productive, disease-resistant cultivars. The USDA report forecast total production at 31.3 million bags, up 5%, including 30.23 million bags of robusta and 1.07 million bags of arabica.
Higher production of certified coffees is on the way, following on the government's strategy to increase quality, yield, and sustainability. A Department of Agriculture and Rural Development report noted that some 185,000 hectares of land, out of approximately 590,000 hectares, in the Gia Lai, Dak Lak, Lam Dong and Dak Nong provinces, have been certified by such systems as 4C, Fair Trade and Rainforest Alliance.