The Strategist

COVID-19 hits coffee market

08/30/2021 - 08:53

Vietnam's coffee exports are suffering because of tight restrictions imposed by authorities to control the spread of the delta strain of coronavirus, Bloomberg writes.

Vietnam is the world's second-largest coffee producer.

The country's authorities are keeping the Ho Chi Minh City export center under a strict lockdown due to a growing number of infections with COVID-19. Coffee shipments in some key production areas of the Central Highlands are now under control.

Because of the restrictions, exporters are facing difficulties in transporting raw materials to ports for shipment. In addition, the situation is exacerbated by other logistical problems, such as container shortages and rising freight rates.

Vendors, including the Vietnam Coffee and Cocoa Association, have sent a petition to the authorities asking them to ease the restrictions that are causing delays and disruptions in shipments. This has resulted in higher prices, among other things. In response, Vietnamese Transportation Minister has ordered authorities in the south of the country to do everything possible to help transport farm products, particularly rice and coffee.

According to the transport minister's instructions, regional officials should avoid all non-binding requirements and burdensome paperwork from suppliers and exporters.