Coffee supplies get a roasting as Vietnam lockdown restrictions lead to bean shortages

30 Aug 2021 --- Concerns over the global coffee supply are escalating as Vietnam, a key producer of robusta – the bitter-tasting bean used in instant coffee and some espresso blends – is in lockdown.

The Vietnam Coffee-Cocoa Association, as well as other trade organizations, are urging the government to ease the COVID-19 restrictions. They want to avoid further delays to shipments and related costs.

Stringent travel controls
But, the major exporting hub of Ho Chi Minh – an important part of the global network that operates from China to Europe – is affected by strict travel restrictions following an increase of Delta variant cases.

And so exporters are struggling to transport commodities around the world. 

The COVID-19 restrictions are hitting coffee supplies, and the disruptions to shipping beans from such a major producing country as Vietnam comes on the heels of coffee crop losses in Brazil. 

Brazil braces for crop losses
Future prices look set to spike as Brazil’s crop forecast has been badly impacted by recent drought and frosts in coffee-growing regions. 

The Brazilian government is bracing for coffee losses as the world’s biggest producer of coffee continues to monitor its crops but fully expects crops to be badly damaged. 

Some reports are claiming the frosts were so bad that many farmers face the prospect of replanting trees, setting production back by several years. 

All this adds to the forecast that the cost of imported coffee beans will go up, having an impact on the end-cost to the consumer. 

Spike in virus infections
It’s not yet known how long the Vietnamese government will keep Ho Chi Minh in such a tight lockdown. 

The lockdown restrictions also come on top of a serious shortage of shipping containers in Ho Chi Minh and rising freight costs. 

By Gaynor Selby