Volcafe Vietnam Co., Ltd (Vietnam)

The subject - Volcafe Vietnam is wholly – owned subsidiary of E D & F Man Coffee Limited (a member company of E D & F Man Holdings Limited). Among business segments of the Group, Volcafe is known as one of the world's largest coffee merchants, trading since 1851 and specializes in worldwide green coffee procurement. In addition, Volcafe is a key supplier of global roasters including Starbucks, Nespresso, Nestlé and JDE, as well as high-street coffee shops and online stores. Volcafe Vietnam gets involved in procuring coffee beans and processing coffee products, especially for Robusta and Arabica coffee. The subject has officially put factory into operation since 2015. Its factory was constructed in mid-2014 on area of 4 hectares with investment capital of USD 80 million. This factory has production capacity of 100,000 tons per year. According to Volcafe's report, the world will suffer from third year of coffee shortage in a row due to low harvest from Brazil, a leading coffee growing country. Arabica has traditionally been the most popular coffee, but Volcafe says Robusta accounted for 48% of global demand in 2022. The price of Arabica coffee is usually more expensive than that of Robusta coffee. Therefore, in the context of the fact that the global economy encounters recession and consumers tend to tighten spending, affordable coffee products are in favors. Based on General Department of Customs, in 2022, Vietnam's coffee exports reached 1.78 million tons, worth of USD 4.06 billion, up by 13.8% in volume and 32% in value compared with 2021, thanks to high price of global coffee. With a rise in coffee price due to shortage, Vietnam's coffee export is forecasted to prosper in 2023.