Gia Lai recommends that people not expand their coffee area.

Coffee prices fluctuate up and down but still remain high, causing many people to want to expand their acreage.

Coffee prices are high, and many coffee growers want to expand their area.

Photo: Nghia Le

The coffee area has still increased slightly over the years.

Mr. Pham Van Binh, director of the Department of Industry and Trade of Gia Lai Province, said that coffee prices are currently decreasing but are still at a high level, so as long as the price reaches over 50,000 VND/kg, farmers will make a profit.

Mr. Tran Van Thanh, in Dak Doa district (Gia Lai), said that this year his family won big when 2 hectares of coffee harvested more than 600 million VND.

This farmer said that, seeing the high price, he wanted to ask to buy more fields, but the transfer price of coffee fields is also increasing rapidly. Currently, 1 hectare of coffee with a good yield is priced at over 1 billion VND.

According to Mr. Thanh, although there is a desire to expand the area, what many farmers are concerned about is the increasingly difficult water source for coffee trees.

According to the Department of Crop Production and Plant Protection of Gia Lai Province, coffee is still a crop that has brought sustainable income to farmers in recent times.

Therefore, people rarely destroy coffee during times of low prices. On the contrary, the coffee-growing area in this province has increased slightly over the years.

Do not massively expand new planting areas.

Also, according to the Department of Crop Production and Plant Protection of Gia Lai Province, farmers should only replant coffee trees in old, ineffective areas. Do not massively expand new planting areas to keep the coffee industry stable.

The Department of Industry and Trade of Gia Lai Province also recommends that farmers keep the farming area stable. We should not see high prices but focus on investing and expanding growing areas so that when coffee comes into harvest, the price drops again.

The authorities also said that the main market for Vietnamese coffee is Europe, which has very strict requirements. To produce sustainable coffee, goods must prove their origin.

Be careful when hoarding goods.

Currently, the price of bucket coffee in the Central Highlands has dropped below 100,000 VND/kg, far from the peak of 134,000 VND/kg set on April 30.

Commenting on market developments, Mr. Do Ha Nam, Chairman of the Board of Directors of Intimex Group Joint Stock Company, a business that holds nearly 25% of Vietnam’s export coffee market share, said that the market is showing signs of speculation.

According to Mr. Nam, during the recent period of shocking increases and sharp declines in coffee prices, the market actually recorded very few transactions. Buying and selling activities only fall on businesses that need to deliver goods urgently to partners.

Mr. Nam said that domestic coffee prices fluctuate in connection with international trading floors. However, at this time, speculators and financial investment organizations are juggling coffee prices on the floor. Therefore, those who speculate and hoard goods during this period need to be cautious to avoid heavy losses.

Source: Giacaphe.com