In just 45 days, a type of nut from Vietnam has generated over $900 million in export revenue, nearly doubling the amount from the same period last year. The price of this nut has also reached a historic peak since its export began.

At the end of the 2023-2024 coffee harvest, Mr. Lò Văn Khánh from Chiềng Chung, Mai Sơn, Sơn La, boasts that he has never seen coffee prices so high and the yield so good as this year. His family, which cultivates 1 hectare of coffee, harvested 20 tons of fruit, an increase of 7 tons compared to the previous harvest. Notably, coffee prices reached a peak of VND 15,000/kg for fresh fruit, nearly doubling from last year. Mr. Khánh earned VND 230 million from selling fresh coffee.

Mr. Nguyễn Thành Trung from Lâm Đồng reported that his coffee plants are blooming abundantly, hoping for another bountiful harvest. Previously, he harvested 24 tons of coffee beans, selling them at VND 75,000-80,000/kg, the highest price in nearly 16 years of coffee cultivation in Lâm Đồng.

Recently, domestic coffee prices have continued to rise sharply. On February 28, coffee prices ranged from VND 82,200 to 83,000/kg, a 70% increase from the same period last year. Currently, domestic coffee prices have reached a 30-year high of VND 83,000/kg.

On the international market, the latest trading session saw Robusta coffee prices in London (UK) for May 2024 contracts increase by $57 to $3,077/ton; for July 2024 contracts, prices rose by $50 to $3,014/ton. Arabica coffee prices for May 2024 contracts increased by 3.45 cents to 183.5 cents/lb; for July 2024 contracts, prices rose by 2.85 cents to 181.65 cents/lb.

According to preliminary statistics from the General Department of Customs, Vietnam exported nearly 57,000 tons of coffee in the first half of February 2024, with a revenue of $184.4 million. From the beginning of the year to February 15, coffee exports reached nearly 295,000 tons, with revenue totaling $911 million.

Compared to the same period last year, coffee export volume increased by only 26.6%, but export value surged by 79.7%. Currently, the average export price of coffee is nearly $3,100/ton, up nearly 43% from the previous year.

Coffee remains the third-highest export commodity in agriculture, following wood products and seafood. The export value of coffee is only $22 million less than seafood.

Experts forecast that coffee exports could reach $4.5-5 billion in 2024, setting a new record for Vietnam's coffee export revenue.

Assessing the global coffee supply and demand situation, international experts believe there will be no shortage or difficulty with Arabica supply but challenges with Robusta. Vietnam has been the world's top producer and supplier of Robusta for many years. The global market is accustomed to buying Robusta from Vietnam, and roasters worldwide have adjusted their roasting formulas to include a significant proportion of Vietnamese Robusta.

The International Coffee Organization (ICO) reports that Robusta prices have risen to a 30-year high due to concerns over tight supply in Vietnam. Global Robusta supply remains constrained, and many major coffee-producing countries are still facing price resistance domestically. Additionally, the EU's regulation that coffee must comply with the European Union Deforestation Regulation (EUDR) also impacts prices, as many countries are not yet prepared to meet these requirements. Consequently, Vietnamese coffee continues to benefit from favorable prices.

According to Mr. Trịnh Đức Minh, Chairman of the Buôn Ma Thuột Coffee Association, the global coffee industry has moved past the era of cheap coffee. The current price increase is fair and is necessary to retain farmers in the coffee sector. He believes that after this price surge, coffee prices may fluctuate but are unlikely to fall to the lows seen in previous years.

Source: Vietstock Vietstock