Domestic Coffee Prices Rise to Record Highs: Aiming for Fairness in the Industry, Expanding to the World Market

Closed trading on Good Friday and Easter. Prices on both exchanges remained the same as at the end of Thursday’s session, with a downward trend as they entered the overbought zone.

Coffee prices in our country plummeted to 1,200–1,300 VND/kg, a rare decrease in recent days. Towards the end of the 2023–2024 production season, coffee prices continuously set new records, approaching 100,000 VND/kg. On the world market, prices decreased for both Robusta and Arabica. In particular, the price of Robusta coffee decreased sharply by more than 2%.

Domestically, agents say supply in Vietnam is scarce. According to the Industry and Trade Information Center, Ministry of Industry and Trade, coffee prices in Vietnam this week increased to a record high, supported by tight supply and concerns that dry weather will reduce coffee output. decline next year.

Vietnam’s exported Robusta coffee (type 2, 5% black and broken) is offered for sale at an additional 600–620 USD/ton compared to the May 2024 futures contract on the London floor. In the domestic market, green coffee was sold for 98,100–100,200 VND (3.96-4.04 USD)/kg, up from 93,000–94,200 VND/kg a week earlier.

In Indonesia, the price of type 4 Robusta coffee (80 defective beans) is offered at a plus of 720 USD/ton compared to the April 2024 futures contract on the London floor, down from a plus of 820 USD/ton a week earlier. . According to the newspaper of the Ministry of Agriculture and Rural Development, in the first quarter of 2024, the agricultural sector still achieved good growth. Productivity and output of many key products increased, ensuring a sufficient supply of food and essential goods.

By the end of March 2024, there were 4 products with an export value of over 1 billion USD, of which coffee was 1.9 billion USD (an increase of 54.2% with a volume of 799 thousand tons, an increase of 44.4%). . Coffee processing businesses in the Central Highlands region are in the most difficult period in many years, when raw coffee prices continue to set new peaks, far surpassing the increase in post-processed products.

Industry insiders say that the rising price of raw coffee shows that the industry is moving towards fairness. Because, for many years, the price of raw coffee has only been around 40 million VND/ton, the product price has always been at least four times higher. At that time, almost only businesses had satisfactory profits, while coffee bean producers suffered, to the point of having to destroy the area and abandon coffee trees.

Domestic coffee prices rose to a record high this week, supported by tight supply and concerns that dry weather will cause next year’s coffee output to decline. According to the latest data from the Ministry of Agriculture and Rural Development, coffee has become the agricultural export product with the strongest growth in the first quarter of 2024.

In the first 3 months of 2024, Vietnam exported 799,000 tons of coffee, earning 1.9 billion USD; this increased by more than 44% in volume and by more than 54% in value compared to the same period in 2023. Accordingly, this agricultural product export turnover set a historical record when it nearly reached 2 billion USD after only 3 months.

Notably, the export price of this agricultural product increased sharply, on average, in 3 months, reaching 2,373 USD/ton. Regarding types, Vietnam increased exports of Robusta and Arabica but decreased exports of Excelsa and processing. Regarding the market, promote the export of Robusta coffee to many markets, such as: Italy, Spain, Russia, Indonesia, Belgium, China, the Philippines,…

Source: Tincaphe.com