Coronavirus has brought several crises upon mankind in 2020. However, it has reserved one more for 2021. Vietnam, the world’s second-largest coffee exporter, imposed a huge lockdown due to the spread of a new more contagious Delta strain across the country. Vietnam is famous for robusta coffee blends. If the virus is not curbed, consumers of Vietnamese coffee may say goodbye to their favorite robusta that is used mostly to make instant coffee.
Vietnam's main export hub, Ho Chi Minh City, is under travel restriction. It is unclear when shipments of robusta beans will resume. The transportation of coffee in many important production areas of the Central Highlands is also under strict control. Supply chains have been disrupted due to restrictions. Exporters are now struggling to transport goods as they are facing a shortage of containers and soaring freight costs.
The Vietnam Coffee-Cocoa Association and other trade organizations called for the government to relax restrictions as it might help avoid further delays in shipments and rocketing prices.
Coffee prices may jump at any time. The main global supplier of coffee, South America, is also experiencing supply problems. Drought and frost have devastated crops in Brazil where the premium arabica variety is produced. After the poor harvest in Brazil, some roasters switched to cheaper varieties of coffee from Vietnam. However, rising prices and supply problems make this option less attractive. As a result, coffee drinkers may face a shortage of coffee this year.
