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  • The global coffee supply chain is suffering as Vietnam - the world's second-biggest grower - imposes a strict travel lockdown.
  • This comes amid renewed fears of a Covid-19 outbreak as fatalities and deaths in the nation spike.
  • This recent mandate has affected some key producing areas of the Central Highlands, Bloomberg reported.
  • For more stories go to www.BusinessInsider.co.za.

The global coffee supply chain is suffering as Vietnam - the world's second-biggest grower - imposes its toughest travel restrictions to date amid renewed fears of a Covid-19 outbreak amid spiking infection numbers.

Vietnamese authorities on August 20 said they would deploy troops in Ho Chi Minh, the country's biggest city and its export hub, to prohibit residents from leaving their homes, Reuters reported.

This recent lockdown affected some key producing areas of the Central Highlands, according to Bloomberg. This area is also known as the "Kingdom of Coffee," according to local media, as it is home to roughly 570,000 hectares of coffee trees.

Exporters have been scrambling to get their beans to the port for shipping amid a surge in freight rates and a shortage of containers. Some traders have urged the government to ease the clampdown, saying they will have to bear the brunt of late deliveries, Bloomberg reported.

The city, with its 9 million people, has been the epicentre of the virus, making up almost half of the infections and 80% of fatalities.

Global coffee prices have soared thus far due to numerous factors including drought in Colombia, damaged crops in Brazil, plant funguses, and a huge backlog of coffee waiting to be shipped.

Apart from coffee, commodities in general, from lumber to oil, rallied due in large part to distorted supply chains brought about by the pandemic.


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