In an exchange with Người Lao Động newspaper, Mr. Tran Dinh Trong, Chairman of the Board of Directors, Director of Ea Tu Cooperative (Buon Ma Thuot City, Dak Lak Province), excitedly mentioned that coffee prices have reached 85,000 VND/kg, double compared to the same period last year. With this price, coffee growers are making large profits.
Coffee price reaches 85,000 VND/kg, a record high
Mr. Trong calculated that every hectare of coffee yields from 3.5 to 3.8 tons. For example, a hectare with the highest yield of 3.8 tons, calculated at the current price of 85,000 VND/kg, will earn revenue of 323 million VND. After deducting costs, coffee growers can earn profits of over 220 million VND/hectare.
According to Mr. Trong, coffee is currently at a record high price for decades. However, the cooperative does not dare to stockpile because it is difficult to predict price fluctuations, and it is uncertain how much can be sold.
At present, Ea Tu Cooperative is partnering with members and farmers to develop the raw material area to reach 350 hectares. The cooperative is also considering organic coffee cultivation, promoting roasting and deep processing of this product.
Meanwhile, Mr. Le Duc Huy, General Director of Simexco Daklak Co., LTD, stated that the world’s demand for Vietnamese robusta coffee is very high, which has led to high coffee prices in the country compared to many years in history. Coffee growers are earning higher profits.
Another factor that has caused coffee prices to increase is that some raw coffee products are used for roasting and mixing in water, so the domestic demand has increased.
Domestic coffee supply is limited
Regarding enterprises, Mr. Huy said that there is no lack of export orders, but in reality, businesses do not dare to accept additional orders for the second quarter of 2023 because the supply from farmers is limited.
“It is estimated that the coffee supply from farmers is still very low. This situation is contrary to previous years. Normally, the supply is expected to run out in June, but now it is almost running out of stock by the end of February,” said the General Director of Simexco Daklak.
Therefore, global orders can be shifted to import from other countries such as Indonesia and Brazil when they are about to harvest.
According to the Ministry of Agriculture and Rural Development, Vietnam’s coffee export turnover in the first two months of 2024 reached 1.38 billion USD (an increase of 85%) compared to the same period. Coffee is one of the impressive growth sectors, contributing to the agricultural industry achieving an export turnover of nearly 10 billion USD.
According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, this is a favorable sign for the agriculture industry to strive to achieve an export target of 54-55 billion USD this year.
However, Deputy Minister Tien also acknowledged the unpredictable risks that may affect coffee exports in particular and agricultural products in general, such as conflicts in the Red Sea, geopolitical tensions, etc. The agricultural industry needs to closely monitor market trends, make flexible adjustments, and adapt in order to achieve its goals.
For the coffee industry, despite being at a record high price, many businesses and experts also warn that farmers should consider choosing the right time to sell their products, as it is difficult to accurately predict price fluctuations in the current context. Coffee prices may continue to rise, breaking old records, but they can also turn around and decrease. It is very difficult to accurately forecast.
