Ample room to bolster local coffee exports to Japan

22:16 04/06/2022

The nation has plenty of room to increase coffee exports to Japan, whose hot coffee market is anticipated to expand by 4.2% during the 2020 to 2025 period, according to industry insiders.

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In April, the country exported 10,540 tonnes of coffee worth US$25.9 million to the Japanese market, up 39.8% in volume and 61.8% in value from the previous year.

The four-month figures hit 45,140 tonnes and US$110.13 million, showing respective increases of 13.4% and 45.4%, according to details given by the General Department of Vietnam Customs.

Coffee export prices stood at US$2,440 per tonne on average during the first four months of the year, representing an annual rise of 28.2%.

Most notably, a surge was recorded in the sale of processed coffee to Japan, with a 63.6% rise in the first quarter to US$16.3 million. The product accounted for 19.38% of total coffee shipments to this Far East country during the reviewed period, compared to 16.93% in Q1 of last year.

GlobalData, a London-based data analytics company, anticipated that the hot coffee market in Japan will grow by 4.2% between 2020 and 2025.

With a population of over 126 million, Japan has a high demand for imported agricultural products, including coffee.

Furthermore, commitments to cut tariff in free trade deals, to which both countries have joined like the Vietnam - Japan Economic Partnership Agreement (VJEPA), the ASEAN - Japan Comprehensive Economic Partnership (AJCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP), are anticipated to open up chances for Vietnamese products such as coffee.

However, Vietnamese coffee makes up a modest part of Japan’s total imports, according to the Cong Thuong (Industry & Trade) newspaper.

The publication cited the Vietnamese counsellor in Japan as saying that opportunities are considerable for agricultural products, including coffee, but in order to raise the market share, businesses must first meet food safety standards and raw materials should be produced under the Good Agricultural Practices (GAP), Hazards Analysis and Critical Control Point (HACCP), or Japanese Agricultural Standards (JAS) systems.

Enterprises were also recommended to establish positive relations with major importers of Japan, learn about local consumers’ taste, diversify products designs, improve quality, and seek to reduce production costs.