From the Field, News

Monday, September 27, 2021

Update on Vietnam Lockdown

A recent surge in coronavirus infections in Vietnam has led to lockdowns and restrictions that may temporarily disrupt the coffee supply chain. While the lockdown will affect the coffee supply chain, it is projected to be a short-term problem and coffee exports will likely return to normal levels in the coming weeks.

This outbreak, the most intense in Vietnam since early in the pandemic, has seen daily infection rates jump from single digits during the first half of 2021 to 12,000 new cases a day at the end August. Slow vaccination rates are also contributing to the spread. As of September, fewer than 6% of Vietnamese adults were fully vaccinated.

At the moment, the lockdown is affecting both factory and office workers. At Sucafina Vietnam, most employees are working from home. Those that need to work in the office are staying at a nearby hotel to avoid travel. Document transfers and sample handling may be slightly delayed.

Similarly, factory and export workers in our supply chain are staying at the factories and docks instead of commuting from home. While these measures keep the entire population safer, they may affect morale, explains Vinh To, Managing Director at Sucafina Vietnam. However, “the factory is still running normally,” Vinh says.

Over the past few months, coffee demand in Europe and North America has increased as coronavirus restrictions have been lifted. At the same time, exports from Vietnam and Brazil, the two largest producers, have fallen between July and August, further increasing prices.

Recent surges in coronavirus cases in Vietnam may affect pricing and shipping times in the short term, but we are hopeful that these changes will resolve in the coming weeks. Sucafina is focused on ensuring the safety and health of employees and workers in the coffee supply chain, and on reducing any delays as much as possible. Keep an eye out for more information as it becomes available.

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