According to the Vietnam Coffee-Cocoa Association, the price of coffee in the Central Highlands provinces has sharply increased today, with an additional increase of 1,400 – 1,700 dong/kg compared to the beginning of the week, ranging from 90,400 – 91,800 dong/kg.
Specifically, Dak Nong province has the highest purchasing price at 91,800 dong/kg, an increase of 1,700 dong/kg. Dak Lak province also increased by an additional 1,400 dong/kg to 91,700 dong/kg. Next, Gia Lai province adjusted the purchasing price to 91,400 dong/kg, an increase of 1,700 dong/kg. The lowest transaction price is currently recorded in Lam Dong province at 90,400 dong/kg, an increase of 1,400 dong/kg.
The high price of coffee in Vietnam is not only due to global trends but also limited supply. At the beginning of the season, when the price was good, many farmers took advantage of the opportunity to sell for profit. By the middle of the season, when the price reached 70,000 – 80,000 dong/kg, even small businesses began exporting.
Tran Van Xuat, Director of the Nam Ban Agricultural Cooperative in Lam Dong province, said that farmers in the cooperative were surprised this year as the harvest was over but coffee prices continued to reach new highs. Based on preliminary calculations, the average coffee yield per hectare is 3.8 tons, and with the current price of about 90,000 dong/kg, the revenue will reach 342 million dong. After deducting costs, coffee growers can earn profits of over 200 million dong/hectare.
Farmers excited as coffee prices reach record highs.
Le Duc Huy, General Director of Simexco Dak Lak, said that there is currently a high global demand for Vietnam’s robusta coffee. This is the reason for the high coffee prices in the country compared to previous years. In addition, some coffee products are used for soluble coffee in the domestic market, leading to increased domestic demand.
On the business side, Huy stated that there is no shortage of export orders, but in reality, companies are not accepting additional orders for the second quarter of 2023 due to the limited domestic coffee supply.
Le Huy Quang, CEO of Le’s Farm, a high-tech agriculture company, believes that farmers are the first to benefit from the high coffee prices. When the price reached 60,000 dong/kg, people were already excited, and now with prices surpassing 90,000 dong/kg, their joy is even greater. Coffee cultivation areas are recovering and farmers are smarter in their use of fertilizers.
According to him, Vietnam’s coffee production has recently decreased sharply from about 1.8 million tons to 1.6 million tons per year due to low coffee prices, leading many farmers to switch to higher-value crops, especially durian. With the current coffee prices, it will discourage people from switching to other crops.
According to the General Department of Customs, in the first two months of the year, Vietnam exported about 438,000 tons of coffee, earning 1.38 billion USD, an increase of 27.9% in volume and 85% in value compared to the same period last year.
Notably, coffee export prices have increased significantly. In February, the average export price of Vietnamese coffee reached an estimated 3,276 USD/ton, an increase of 7.4% compared to the previous month and a significant increase of 50.6% compared to February 2023. In the two-month period, the average export price of coffee in Vietnam reached 3,153 USD/ton, an increase of 44.7% compared to the same period in 2023.
