In just 45 days, a type of Vietnamese seed export has brought in over 900 million USD, nearly doubling compared to the same period last year. The price of this seed has also reached a historical peak since exports began.

At the end of the 2023-2024 coffee harvest season, Mr. Lò Văn Khánh (from Chiềng Chung, Mai Sơn, Sơn La) proudly shared that he had never seen such a bountiful and high-priced coffee harvest as this year.

His family planted 1 hectare of coffee, yielding 20 tons of fruit this season. Compared to the previous coffee season, the yield increased by 7 tons. Notably, coffee prices peaked at 15,000 VND/kg of fresh fruit, nearly doubling from last year.

At the end of the harvest, Mr. Khánh earned 230 million VND from selling fresh coffee fruit.

Mr. Nguyễn Thành Trung (from Lâm Đồng) said that coffee trees are currently blooming with white flowers, giving hope for another bountiful harvest. Previously, Mr. Trung harvested 24 tons of coffee beans and sold them at prices ranging from 75,000-80,000 VND/kg. This is also the highest price after nearly 16 years of growing coffee in Lâm Đồng.

These days, the price of coffee beans in the domestic market continues to rise sharply. On February 28, coffee prices ranged from 82,200-83,000 VND/kg, up 70% compared to the same period last year.

Currently, domestic coffee prices have reached a 30-year historical peak, hitting 83,000 VND/kg.

In the international market, at the end of the most recent trading session, the price of Robusta coffee for May 2024 delivery in London (UK) increased by 57 USD to 3,077 USD/ton; July 2024 delivery increased by 50 USD to 3,014 USD/ton.

The price of Arabica coffee for May 2024 delivery increased by 3.45 cents to 183.5 cents/lb; July 2024 delivery increased by 2.85 cents to 181.65 cents/lb.

Preliminary statistics from the General Department of Customs show that in the first half of February 2024, Vietnam exported nearly 57,000 tons of coffee, with a turnover of 184.4 million USD. From the beginning of the year to February 15, the export volume reached nearly 295,000 tons, with a turnover of 911 million USD.

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

Coffee is currently the third highest export value item in the agricultural sector, only behind wood and seafood. However, the export value of coffee is only 22 million USD less than that of seafood.

Given this situation, experts forecast that coffee exports could reach 4.5-5 billion USD in 2024. This will set a new record for Vietnam's coffee export turnover.

Assessing the global coffee supply and demand situation, international experts believe that the world will not face shortages or difficulties in Arabica supply but will encounter challenges with Robusta.

Meanwhile, Vietnam has been the world's number one producer and supplier of Robusta for many years. The world is accustomed to buying Vietnamese Robusta coffee. Global roasters have changed their roasting formulas to include a large component of Vietnamese Robusta.

A report by the International Coffee Organization (ICO) shows that Robusta prices have risen to a 30-year high due to concerns over tight supply in Vietnam.

The global Robusta supply remains congested, and many major producing countries still have price resistance in their domestic markets. Additionally, the EU's regulation that coffee must meet the Anti-Deforestation Regulation (EUDR) requirements also affects prices, as many countries have not yet prepared the necessary procedures to meet these requirements. As a result, Vietnamese coffee continues to benefit from higher prices.

According to Mr. Trịnh Đức Minh, Chairman of the Buon Ma Thuot Coffee Association, the global coffee industry has moved past the era of cheap coffee. The current price increase is fair and necessary to keep farmers committed to coffee cultivation. He believes that after this price surge, coffee prices may rise or fall but will not drop to the lows seen in previous years.

Source: Vietstock