Global coffee market disrupted by Vietnam's strict Covid restrictions

Workers harvest coffee beans in the central highlands (File photo)

Global coffee supply chains have been severely disrupted due to mobility restrictions in southern Vietnam amid the ongoing Covid-19 outbreak.

With export hub Ho Chi Minh City continuing to be under social distancing due to surging number of infections, many traders and suppliers told VN Express that exporters are struggling to transport beans to its ports for shipment.

Vietnam is the second biggest coffee producer globally behind Brazil. Last year its exports fell marginally and were worth $2.74 billion.

Vietnam's Coffee Exports

The global shortage of containers, plus the soaring freight rates have all worsened the situation.

The Vietnam Coffee-Cocoa Association is now urging the government to ease the curbs.

Earlier this week Minister of Transport Nguyen Van The said all types of legal goods must be considered "essential" and their transporters must be allowed to pass through Covid checkpoints.

Authorities in the south need to do everything possible to facilitate the transport of agricultural products such as coffee and rice, he added.